Petrobras, Venezuelan oil firms sign JV deal

July 28, 2006
Two Venezuelan oil companies have signed contracts with Brazil's state-owned Petroleo Brasileiro SA (Petrobras) to jointly exploit oil deposits in La Concepcion oil field in Venezuela.

Peter Howard Wertheim
OGJ Correspondent

RIO DE JANEIRO, July 28 -- Two Venezuelan oil companies have signed contracts with Brazil's state-owned Petroleo Brasileiro SA (Petrobras) to jointly exploit oil deposits in La Concepcion oil field in Venezuela.

Venezuela's state-owned Petroleos de Venezuela SA (PDVSA) said the new joint venture, Petrowayu, would operate La Concepcion oil field in the Western state of Zulia. The field produces 12,300 b/d of oil.

Plans are to increase La Concepcion's extraction of oil. PDVSA unit Companhia Venezuelana de Petroleo (CVP) and privately owned Williams International Oil & Gas Ltd. respectively would hold 60% and 4% of the shares in Petroway, the new company. Petrobras, meanwhile, would hold 36%, CVP said in a statement.

CPV said the company planned to sign another four JV contracts with Petrobras, without specifying any details about the partners involved.

On Mar. 31, Venezuela signed 17 similar JV contracts with domestic and international companies under a new Organic Hydrocarbons Law. Since then, CVP has signed six JV contracts with a majority share of the operations.

Venezuelan President Hugo Chavez has sought to create a regional energy consortium to counter the influence of foreign energy companies and the US on Venezuelan oil exports. Caracas also is seeking to expand its business with Asia, most notably with China.