Corocoro

Corocoro Oil Field Profile

Location

The Corocoro oil field is located offshore in the Gulf of Paria, Venezuela, with specific coordinates at 10.1429, -62.4758 (WGS 84).

Discovery and Development

• The Corocoro oil field was discovered in early 1999 by ConocoPhillips through a 12,100 feet (3,700 m) deep test drilling that identified three discrete oil sources and a separate natural gas reserve.
• ConocoPhillips led a consortium that included PDVSA, Eni, and CPC Corporation to develop the field. The project received initial approval from the Venezuelan government in April 2003.

Ownership and Operation

• Initially, the ownership structure was as follows: ConocoPhillips (32.5%), PDVSA through its subsidiary CVP (35%), Eni (26%), and CPC Corporation (6.5%).
• In 2007, Venezuela expropriated the field from ConocoPhillips, transferring its stake to PDVSA. CPC Corporation withdrew, but Eni retained its stake. A new joint venture named Petrosucre was formed, with PDVSA holding 74% and Eni holding 26%.

Production

• Production began in early 2007, with initial plans to produce 75,000 barrels per day, aiming to peak at 120,000 barrels per day through fourteen wells. The field was estimated to have 500 million barrels of oil reserves.
• Under Venezuelan control, production declined significantly. By the end of 2018, production had dropped to about 15,000 barrels per day. Following U.S. sanctions on PDVSA in January 2019, production continued to decline until it was completely shut down in early March 2019 due to lack of storage.

Reserves

• The Corocoro oil field has various reserve estimates:
  • Proven reserves: approximately 135 million barrels (as of 2016).
  • Remaining recoverable reserves: about 125 million barrels (as of 2021).
  • Oil in place: estimated at 1.088 billion barrels (as of 2021).
  • Cumulative production: around 85 million barrels (as of 2021).

Production History

• The field's production peaked early but declined rapidly under Venezuelan management. Here are some key production figures:
  • 2008: 25.55 million barrels per year.
  • 2015: 12.04 million barrels per year.
  • 2016: 9.86 million barrels per year.

Challenges and Closure

• The production at Corocoro was significantly impacted by the U.S. sanctions on PDVSA in January 2019, which prevented PDVSA from receiving payments from American customers, including Citgo, the primary purchaser of Corocoro oil. This led to a complete shutdown of production in early March 2019 due to storage issues.

Infrastructure

• The field involved the use of a floating storage platform known as the FSO Nabarima.

Conclusion

The Corocoro oil field, once a promising subsea oil field in the Gulf of Paria, faced significant challenges and eventual closure due to a combination of expropriation, declining production, and international sanctions. Despite initial plans for substantial production, the field's output dwindled under Venezuelan control, ultimately leading to its shutdown in 2019.