Venezuela begins tender process for 11 gas prone blocks
Venezuela has begun a public tender process to grant licenses to private national and foreign companies for the development of 11 areas rich in non-associated gas reserves. Investors qualifying for the tender may submit their offers through mid-May. Bids are due to be opened June 28-29.
By an OGJ Online Correspondent
CARACAS, Apr. 24 -- Venezuela's Energy and Mines ministry on Monday began a public tender process to grant licenses to private national and foreign companies for the development of 11 areas rich in non-associated gas reserves.
The ministry arranged the 2-day closed-door seminar for interested companies to provide data regarding the technical, legal, and commercial aspects of the proposed tender.
Investors qualifying for the tender may submit their offers through mid-May. The opening of the bids and announcement of winning companies is planned for June 28-29.
"This seminar fundamentally is in preparation for the bidding round. During the event, doubts regarding the legal framework and the actual bidding process for potential investors will be cleared," said Rafael Ramirez, president of the state's National Gas Agency.
The tender is expected to generate $6-10 billion of investment for developing the 11 areas. The licenses will be valid for 35 years and will be renewable for an additional 30 years. Under the terms of the licenses, companies will pay a 20% royalty on production volumes along with a 34% tax.
Offered in the tender are Norte de Ambrosio in Zulia state, covering 527 sq km; Yucal Placer, two areas in Guarico state covering 900 sq km; seven areas in Guarico, Aragua, and Cojedes states covering 1,200 sq km each; and the Barrancas tract covering 1,970 sq km across Barinas, Portuguesa, and Trujillo states on the western plains.