July
2, 2004
Venezuela's Energy Ministry
readies new gas tenders
(BNAmericas) - "Venezuela's mines
and energy ministry is preparing a number of tenders
to develop gas reserves estimated at up to 196
trillion cubic feet (tcf), deputy energy and mines
minister and director of state oil company PDVSA,
Luis Vierma, told delegates at this week's Latin
American and Caribbean Gas Summit in Trinidad.
By July 15, the mines and energy
ministry will contact companies to discuss the
terms and conditions of seven offshore blocks
in the Gulf of Venezuela.
The seven blocks are Róbalo,
Merluza, Barracuda, Lisa, Sierra, La Vela and
Falcón Noreste, although according to different
government information they may be joined by an
eighth recently defined block, Los Frailes.
Onshore, five non-associated natural
gas blocks will be reoffered by the end of this
year or the start of next year, Vierma said. They
are Norte de Ambrosio (Zulia state), La Galera
and El Pao (both in Cojédes state), and
El Totumo and Memo (both in Aragua state).
Following those blocks, the next
areas on PDVSA's timetable are Blanquilla, Carupano,
Fachada Alantica, Ensenada Barcelona, Tuy-Cariaco
and Cubagua.
'If everything goes smoothly, as
it has been so far, the process of exploration
will take from 2003, when we finished in the Deltana
platform, to 2008. The total investment in this
exploration campaign will reach US$100mn,' Vierma
said.
(…) Venezuela's proven reserves
are 148tcf but could be much bigger after considering
its largely unexplored offshore areas, Vierma
said. 'We have half a million square kilometers
of offshore areas that need to be explored, and
we believe that if there are opportunities to
develop new fields in oil and gas, then those
opportunities are right there [offshore]', he
said.
Companies would moreover need to
have excellent environmental credentials and to
be "first class" in terms of exploration
and production (…)
'We are looking for new technologies,
which are the key to the future. There we want
to use the technologies available to drill intelligent
wells that will allow us to increase productivity,
and in that sense we are looking forward to production
costs of less than US$1/mBTU,' he said.
Partners would also have to
fall in line with Venezuela's plans to encourage
sustainable development in the areas in which
it operates and its desire to boost local content
in its projects, Vierma said.
