November
22, 2004
PDVSA and Repsol create
a new company to produce hydrocarbons
(Últimas Noticias) - "According
to the Spanish newspaper El País,
this is the first company of its kind
that is created in Venezuela after the
approval of the Hydrocarbons Law and it
will allow increasing the production of
oil and gas in the Lago de Maracaibo region
(northwest of Venezuela), where the Spanish
company is based.
According to the hydrocarbons law in force
since 2001, activities in the oil fields
given to foreign companies by the Venezuelan
government under the concessions regime,
have to be channeled through mixed partnerships.
In this new mixed company, Repsol YPF
will provide the oil field of Menegrande
in the Lago de Maracaibo region and PDVSA
will provide the ones of Barúa
and Motatán, located 17 km southeast
of Menegrande, which will allow the production
to increase from 20.000 daily barrels
to 35.000 daily barrels, as explained
in El País (…)
According to the hydrocarbons law, foreign
multinational companies can only own 49%
of the new mixed partnerships, the Venezuelan
public oil company will own the rest.
Repsol YPF currently produces 100.000
daily barrels in the four oil fields that
it exploits under the concessions regime
in the northern part of Venezuela. The
Spanish company wants to increase its
production in this region to 125.000 daily
barrels, which will be possible thanks
to the agreement with PDVSA.
The contribution to the Menegrande oil
field will not be enough for Repsol YPF
to reach 49% of the capital of the mix
partnership with PDVSA, so this will force
a supplementary investment.
Even when the Venezuelan company will
own most of the capital, management will
be under Repsol YPF.
According to El País newspaper,
Repsol YPF forecasts indicate that in
2005 there will be investments of 185
million dollars in Venezuela, the world's
fifth oil exporter".
