Thursday, January 15, 2009

Venezuela Reopens Oil Exploration Bids To Western Cos

Venezuela is quietly courting Western oil companies amid falling oil prices, the New York Times reported Wednesday, citing energy executives and industry consultants.
The bidding process, which will close in June, moved "into high gear" this month, with authorities expected to review bids to recover oil from new areas around the Orinoco Belt in southern Venezuela, the newspaper reported on its Web site. Some of the companies asked to bid include Chevron Corp., Royal Dutch Shell PLC and France's Total S.A., it said.

Under bidding rules, financing for any new projects is borne by foreign companies, according to the newspaper. There is an estimated 235 billion barrels of recoverable oil, requiring more than $20 billion in investment to produce a combined 1.2 million barrels a day, the newspaper said. Nineteen companies paid $2 million each last month - twice what it costs elsewhere - for data on areas open for exploration in the country, the newspaper reported.

Venezuela's energy minister Rafael Ramirez, who also is president of state-run Petroleos de Venezuela S.A., didn't respond to requests for an interview, the newspaper said. Chevron Corp. spokesman Scott Walker said the company doesn't elaborate on bidding beyond that decisions are based on economics and other factors, it said.

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