Peter Howard Wertheim
OGJ correspondent
RIO DE JANEIRO, Nov. 17 -- Venezuela, in the second round of bidding in its vast Rafael Urdaneta natural gas project, has awarded exploration licenses to four foreign firms and a domestic company, Energy Minister Rafael Ramirez said Nov. 15.
The licenses cover three of five blocks offered in the Gulf of Venezuela off the western state of Falcon. The Rafael Urdaneta region, 29 blocks in a 30,000 sq km offshore area, is estimated to hold a combined 728 billion cu m of gas.
Brazil's state-owned Petroleo Brasileiro SA and Japan's Teikoku Oil Co. were selected to explore the Moruy II block for $19.5 million.
Italy's Eni SPA and Spain's Repsol YPF won exploration rights for the Cardon IV block for $34.3 million.
Venezuelan firm Vinccler Oil & Gas—the first domestic company to win a gas block in Venezuela, the minister said—will explore the Castillete-Northeast block for $7.38 million.
Two other blocks, Urumaco III, in a second offering, and Cardon III, were not awarded.
Exploration terms on the awarded blocks are 30 years.
Ramirez, who also is president of the state-owned oil company Petroleos de Venezuela SA, said there will be no more bidding on gas licenses this year.
On September 8, in Phase I, Chevron Corp. and Russia's OAO Gazprom were awarded three licenses for a total of $46 million (OGJ Online, Sept. 20, 2005).
The government plans to resume bidding on eastern blocks in 2006.
Venezuela has vast reserves of associated natural gas, but large volumes are used for oil recovery.
Additional gas production from the Rafael Udarneta project probably will be exported, say Venezuelan government officials.
