New York (Platts)--23Dec2011/1146 pm EST/446 GMT

Repsol, Eni and Venezuela have agreed to a supply deal that will lead to the development of Venezuela's giant Perla natural gas field, Repsol said Friday.

The first phase of development is expected to cost $1.5 billion, including the "exploration and evaluation phase" in which 300,000 Mcf/d is expected to be produced, Repsol said in a statement.

Signed by Repsol Chairman Antonio Brufau, Eni Chairman Paolo Scaroni and Venezuelan Minister for Oil and Mining Rafael Ramirez Friday in Caracas, the 25-year supply contract runs through 2036 and calls for the supply and purchase of more than 8 Tcf of gas, Repsol said.

Speaking at the signing ceremony at PDVSA headquarters, Ramirez, who is also president of the state company, said the partners "have arrived at a deal that allows us to build infrastructure necessary to begin to produce natural gas and deliver it as soon as possible" from Perla.

"We are going to begin accelerated exploitation of our natural gas reserves," Ramirez said in televised comments in Caracas. "We will certify at least 400 Tcf of natural gas in our country, along the coast as well as on land."

Repsol and Eni each hold a 50% stakes in the Cardon IV block in which Perla is located, but development will be divided between the Spanish and Italian companies, each with 32.5% stakes, and Venezuelan state PDVSA, which will have a 35% share.

The gas from the shallow-water offshore field in the Gulf of Venezuela will be piped onshore and distributed though the country's distribution network, including for industry, Repsol said.

Perla holds more than 16.3 Tcf, according to Repsol, which discovered the field with Eni in 2009. Since its discovery, five wells have been drilled and these will now be put into production using offshore platforms, Repsol said.

Production is to rise to 1.2 Bcf/d over the next two phases and kept at this level until the end of the contract in 2036, Repsol said.

Perla also "offers new opportunities for natural gas exports, which Repsol and Eni will analyze with PDVSA and the oil ministry," Repsol said.

"This is a flagship project to which without question we will dedicate a major amount of effort, as we do to Orinoco Belt projects" of heavy oil production elsewhere in Venezuela, Brufau said at the signing ceremony.

--Richard Rubin, richard_rubin@platts.com --Mery Mogollon, newsdesk@platts.com