Venezuela prepares to tender gas fields

March 16, 2001
Venezuela�s Energy and Mines Ministry has appointed a commission to handle a public tender for private national and foreign investment to develop 11 areas rich in non-associated gas reserves, a ministry source said Thursday. Licenses will be granted to private companies to help accelerate gas development.


By an OGJ Online Correspondent

CARACAS, Mar. 15�Venezuela�s Energy and Mines Ministry has appointed a commission to handle a public tender for private national and foreign investment to develop 11 areas rich in non-associated gas reserves, a ministry source said Thursday.

Under the proposed tender, licenses will be granted to private companies to explore and exploit gas reserves as part of the government�s broad energy policy aimed at accelerating development of Venezuela�s gas.

The ministry source told OGJ Online that the tender's terms will be established next month. A seminar covering the tender's technical, legal and commercial aspects tentatively is scheduled April 23-24.

Qualifying investors may submit their offers for the bidding round through mid-May. Opening of the bids and announcement of the winning companies will take place on June 28-29, the source said.

The Venezuelan Gas Processors Association issued a news release earlier this week saying the ministry has a new gas pricing resolution recognizing the production costs and a 15% profit to investors.

The 11 areas are: Norte de Ambrosio (one area) in Zulia state, western Venezuela, covering 527 sq km and containing estimated reserves of 2-6 tcf; Yucal Placer (two areas) in Guarico state, central Venezuela, covering 900 sq km with proven reserves of 2 tcf with the possibility of increasing to 3 tcf.

Also, Guarico-Cojedes (seven areas) in Guarico, Aragua and Cojedes states covering 1,200 sq km each with estimated reserves of 2-8 tcf; and Barrancas (one area) covering 1,970 sq km in the western plains of Venezuela across Barinas, Portuguesa, and Trujillo states with reserves of 2-6 tcf.