March 30, 2005
Repsol in big Venezuela growth.

(Lloyd's List) - "Repsol has announced a big expansion in Venezuela that includes a project to build a liquefied natural gas terminal alongside plans for a joint venture with state-owned Petróleos de Venezuela that will double the Spanish company's hydrocarbon reserves in the country.

Repsol chairman and chief executive Antonio Brufau signed three preliminary agreements with Rafael Ramírez, Venezuela's Minister of Energy and Mining, and the chairman of PDVSA.

The first memorandum of understanding envisages a joint venture with PDVSA that will allow Repsol to boost net production from 100,000 to 160,000 bpd.

The joint venture, in which PDVSA will hold 51%, will also double Repsol's Venezuelan reserves and includes exploration and production rights.

A second memorandum centres on the LNG sector and contemplates building a gas plant on the coast that would be supplied by Repsol.

It also foresees the company's participation in the Gran Mariscal Sucre project, the main LNG project under study in Venezuela.

A third memorandum allow a Repsol subsidiary in Venezuela to build and operate an electricity generation plant in Venezuela that would subsequently sell blocks of electricity to PDVSA.