VENEZUELA GETS SECOND ROUND BIDS ON MARGINAL FIELDS
Petroleos de Venezuela SA has disclosed bidders in the Venezuelan state oil company's second round of contracts to produce oil and gas from marginal fields.
Pdvsa operating units Corpoven SA, Lagoven SA, and Maraven SA in July received bids from 44 companies and groups in the round (OGJ, Aug. 16, Newsletter). Bidders are vying for service contracts covering 74 marginal oil fields grouped in 13 blocks across Venezuela. Companies bid on 11 of the 13 blocks.
The fields are considered marginal because they are not part of Venezuela's main production and will not be operated directly by Pdvsa units. Most are producing, and only one, Falcon offshore, has never produced.
Pdvsa estimates the 13 production units contain total proved reserves of 1.2 billion bbl of light, medium, and heavy gravity crudes and condensate. The Ministry of Mines and Energy estimates combined productive capacity from the fields at 300,000 b/d by 2000.
CONTRACT DETAILS
As was the case with the first round of marginal field bidding, winning bidders will sign 20 fear operating contracts with one of the three Pdvsa units and be obliged to commit investments to the fields under a prearranged schedule.
At least one of the contracts signed in 1992 has a basic 3 year commitment. If the company in that contract chooses to do so, it can halt its investment program at that stage.
Although the contractors are to make direct investments in drilling and production facilities, they are not equity investors and do not own the oil and gas they produce. All production must be sold to one of the three Pdvsa units. Contractors are paid on a volume basis for crude and gas produced and are to be reimbursed for capital outlays.
In contrast with the 1992 operating contracts, agreements under the second round will allow contractors to drill beyond original horizons delineated by earlier concessionaires.
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