VENEZUELA LISTS 2ND ROUND MARGINAL FIELD WINNING BIDS

Venezuela has awarded new production contracts to nine groups or companies to revive marginal oil fields. Alirio Parra, Venezuela's Minister of Energy and Mines, said investment plans submitted by the successful bidders call for outlays of $860 million through 1996. That will cover production infrastructure, new drilling, and some exploration. State petroleum company Petroleos de Venezuela SA estimates proved reserves in the nine blocks at 1.2 billion bbl of light/medium crude and

Oct. 18, 1993

2 min read

Venezuela has awarded new production contracts to nine groups or companies to revive marginal oil fields.

Alirio Parra, Venezuela's Minister of Energy and Mines, said investment plans submitted by the successful bidders call for outlays of $860 million through 1996. That will cover production infrastructure, new drilling, and some exploration. State petroleum company Petroleos de Venezuela SA estimates proved reserves in the nine blocks at 1.2 billion bbl of light/medium crude and condensate and targets production of 140,000 b/d of crude by 1996 and 300,000 b/d by 2000.

Put up for bid earlier this year, the nine blocks covering 74 oil fields (see map, OGJ, Sept. 6, p. 42) were part of a second international tender round for international and private domestic firms to participate in boosting production from marginal fields in Venezuela. Similar contracts were signed under a first round with foreign and private domestic firms in 1992, the first such contracts to be signed in Venezuela since nationalization of the petroleum industry in 1976.

Previously, all domestic oil and gas development-outside of a liquefied natural gas export project and Orinoco heavy oil upgrader projects-had been exclusively the responsibility of Pdvsa units.

WHAT'S INVOLVED

Under the production contracts, companies will provide all funds and sell all production to Pdvsa units Corpoven SA, Lagoven SA, and Maraven SA. The three operating units received bids on 11 of 13 blocks up for bid.

Venezuelan officials did not say when the final agreements would be signed.

Winning bidders and their respective blocks are Mosbacher Energy Corp., Guarico Occidental; Teikoku Oil Co. Ltd., Sanvi-Guere; Norcen International Ltd./Naviera Perez Companc/Servicios Corod de Venezuela SA, Oritupano-Leona; Tecpetrol SA/ Astra Capsa/Ampolex (USA) Ltd./Soc. Internacional Petrolera SA, Quiamare-La Ceiba; Total, Jusepin; Maxus Energy Corp./Otepi Consultores SA, Quirequire; Royal Dutch/Shell, Urdaneta Oeste; Occidental Corp., D.Z.O (West Zulia); and Olympic Oil & Gas Corp./ Hyundai Heavy Industries Co. Ltd., Falcon Costa Afuera (offshore).