Venezuela
Will Call New Licensing Opportunities Authorizing the Offshore Exploration and
Production of Hydrocarbons
(Washington
DC. July 18, 2003).- Two new licensing opportunities will be offered next month
authorizing the exploration and production of gas in Blocks 3 and 5 of the
Deltana Platform, while additional production and exploration opportunities will
open by the end of this year in seven offshore blocks in the Gulf of Venezuela
and the State of Falcon.
The
announcement was made in Washington DC during the Symposium “Venezuela: A
Reliable Partner. Securing U.S. Energy Needs and Enhancing Business
Opportunities.”
Rafael
Ramirez, the Minister of Energy, Luis Vierma, the Vice-Minister of Hydrocarbons,
Aires Barreto, the Vice-President of PDVSA, Bernardo Alvarez, the Venezuelan
Ambassador for the United States and many representatives of the Oil Chamber of
Venezuela, the Venezuelan Association of Hydrocarbons; the World Bank, U.S.
Congress members and energy firms such as ChevronTexaco, Shell, Mitsubishi,
Statoil, ConocoPhillips, Petrobras, Schlumberger y ExxonMobil.
The
invitations for the upcoming exploration and production opportunities are part
of the offshore strategy advanced by the government of Venezuela through the
Ministry of Energy and with the technical support of the Venezuelan State Oil
Company, PDVSA. The aim of the strategy is to achieve sustainable development
through energetic diversification. “Eight companies have been chosen to
participate in the exploration and production process for Blocks 3 and 5 of the
Deltana Platform,” informed Luis Vierma, the Vice-Minister of Hydrocarbons,
referring to the blocks of approximately 3 thousand square kilometers expected
to contain large amounts of gas.
Regarding
the licensing opportunities authorizing the exploration and production in the
seven offshore blocks in the Gulf of Venezuela and the State of Falcon, Carlos
Barbieri, the General Manager of the Deltana Platform Project pointed out that
they expect to find important gas and oil reserves that will encourage oil
development and satisfy gas needs in the western part of Venezuela.
“Previous
experience in the exploitation of gas, financial capacity, access to the
international markets and sustainable development issues are among the
requisites that the Ministry of Energy takes into consideration when it
evaluates the candidates”, informed Vierma.
The
Vice-Minister of Hydrocarbons also highlighted that it is estimated that the
combined reserves of the Deltana Platform and Mariscal Sucre projects are so
significant that they will be capable of supplying the demand of gas in the East
Coast of the United States and locally in Venezuelan during the next 35 years.
Minister
Rafael Ramirez ratified that CITGO, an affiliate of PDVSA, will strengthen,
expand and reinforce its presence in the United States.
“The internationalization is part of a series of strategic policies
that include the rise in the base of resources, the aggregate value of exports,
the development of national capital, the strengthening of the industrialization
of hydrocarbons and the reinforcement of a long term commitment with OPEC in
order to achieve an equilibrium between the producing country, consumers and
investors”, said Ramirez.
At
the same time, the Head of the Office of Energy and Mines praised the benefits
of the new legal and fiscal framework that will establish advantages for
investors. Ramírez commented that “Our reserves will convert Venezuela into
an excellent energy center in the Western Hemisphere. It is necessary for the
Hydrocarbon sector to contribute to sustainable development, and in order to do
this, we are counting on the support of our international business partners,
because private capital is a friend of the government of Venezuela.”
Regarding
the nation’s position with respect to the entrance of new foreign investors,
Bernardo Álvarez, Venezuelan Ambassador in the United States, explained that
“We are committed to welcoming these types of investors because we know that
we cannot prosper as a nation without participating in international business.
We are diligently working to make known the advantages and benefits that
Venezuela has to offer.” Additionally, Álvarez underlined that “Venezuelan
petroleum is a critical factor of national security not just for the United
States, but also for all nations in the Western Hemisphere.”
Business
Plan through 2010
“In
its Business Plan through 2010, PDVSA, has concentrated on four principal
activities: Conversion of heavy unrefined petroleum into a sellable product,
exploration in search of light and medium unrefined petroleum, development of
the gas business and underwater activities”, explained Aires Barreto, Vice
President of PDVSA.
Barreto
announced that they will maintain efforts to optimize the current business
portfolio. “We estimate reaching a production capacity of 5 or 6 million
barrels per day at the midway point, with an investment between $40 and $45
million dollars. At the same time, PDVSA will increase the economic contribution
to the nation, based on the development of our abundant petroleum and gas
resources. In any case, PDVSA will always act as a socially responsible
business.”
The
Vice President of PDVSA added that investments over the next few years should
consider expenditures of approximately $5 million dollars annually, with an
emphasis on exploration and production, followed by investments in strategic
associations, primarily in the Orinoco River Belt.