April 4, 2005
Rafael Urdaneta Project: US$ 20 billion for gas development in Venezuela

(Conapri's newsletter Invest Venezuela, Year 10, Nº 13) - " The national gas deficit of 1.50 billion cubic feet a day should be covered by 2008, to later start sales on the international market. 37 companies have already shown interest

Development of the non-associated gas in the Gulf of Venezuela and northeast Falcón state will require an investment of US$ 20 billion over the next 25 years, Energy and Oil Minister Rafael Ramírez said during the presentation of the Rafael Urdaneta Project.

A total of 37 international companies showed interest in the Project. In the first phase, five exploratory blocks will be put up for bidding in the offshore area of the Gulf of Venezuela, and one block for development (La Vela Sur) in eastern Falcon. The total project covers 29 blocks of less than 1,000 km2 each.

The Project covers a total area of 29 blocks. The reserves of non-associated gas in this area, which are estimated at 26 trillion cubic feet, are expected to cover the deficit of this hydrocarbon in the Western region of the country.

The Ministry of Energy and Oil will announce the companies selected on August 10, and the blocks will be awarded on September 10 this year. The licenses are governed by the parameters defined in the Gas Hydrocarbon Law, as follows:

According to Ramírez, these provisions are intended to create more advantageous conditions for private capital. On this basis, the national deficit of 1.50 billion cubic feet a day should be covered by 2008. From that year, supplies will be sold on the international market.