Gazprom, Chevron joint development
Offshore staff
(Venezuela)- Russian oil company Gazprom and US-based Chevron have each signed contracts with the Venezuelan energy and oil ministry for gas exploration in the Rafael Urdaneta field. Gazprom bid $15.2 million for the Urumaco I block and $24.8 million for the Urumaco II block, and Chevron bid $5.6 million for the Cardon III block.
Venezuelan president Hugo Chávez said at the contract signing ceremony that the development of the country's gas reserves is of the "greatest strategic importance." Natural gas reserves in the country total 150 trillion cu ft.
Development of natural gas is part of Venezuela's larger plan to use the gas for thermoelectric power generation, which is currently being fueled by liquid sources (diesel and fuel oil). Replacing power generation with gas would free up the liquid fuel for export at high international prices.
The Rafael Urdaneta project consists of 29 different blocks off the northern coast of Falcón state, covering a total area of 30,000 sq km with total gas reserves estimated at 26 trillion cu ft. The blocks will be tendered at different stages.
The first stage of Rafael Urdaneta consisted of an offering of six blocks, but only three were awarded due to insufficient or non-existent bids on the remaining three. The energy and oil ministry launched a second tender for five more blocks in the region: Urumaco III, Moruy II, Castillete Noreste II, Cardon II and Cardon IV. Bids for these blocks will be received November 9.
10/7/2005