Venezuela has awarded a consortium headed by TotalFinaElf SA the 35-year exploration, production, and development licenses to the Yucal Placer Norte and Yucal Placer Sur blocks.
The area is believed to contain large reserves of nonassociated gas. The award is part of a move to open the Venezuelan gas sector to private investment, said TotalFinaElf.
Gas production at Yucal Placer field, 100 km southeast of Caracas, ended in 1989.
The partners plan to redevelop the field in two phases, including drilling, construction of gas collection and treatment facilities, and connection to the national gas transportation network. The second phase will increase production to 300 MMcfd.
TotalFinaElf will hold 69.5%; Repsol-YPF SA will hold 15%; and Venezuelan companies Inelectra and Otepi will hold 10.2% and 5.3%, respectively.
In offering the blocks to the industry, Venezuelan officials said Yucal Placer could contain 2-3 tcf of remaining reserves. The blocks cover 900 sq km in the Guarico sub-basin.
