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December 14, 2007 |
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PETROLEOS DE VENEZUELA: Advancing Plans for NatGas Project Dev't Venezuelan state-run oil company Petroleos de Venezuela SA's Latin American integrated product development managing director David Voght told Business News Americas that the firm is advancing with plans for the development of natural gas liquefaction projects in the country. Petroleos de Venezuela started initial liquefied natural gas marketing efforts, BNamericas relates, citing Mr. Voght. The firm signed an accord with a European organization giving Venezuela access to a regasification plant and an initial market of 200 million cubic feet per day. An additional agreement was also signed with the organization to give it the option to take an equity position in the liquefied natural gas plant to be built in Venezuela. Mr. Voght commented to BNamericas, "While discussions are ongoing and not immune to delays, it is important a political decision seems to have been taken to develop LNG [liquefied natural gas]. LNG is a real possibility for Venezuela. The country's offshore reserves can more than support a first LNG train. PDVSA [Petroleos de Venezuela] seems to have concluded that half planned natural gas production from the reserves-rich North Paria offshore area will be earmarked for export along with production from the Plataforma Deltana offshore area." BNamericas notes that liquefied natural gas "will face fierce competition from domestic demand for natural gas." Petroleos de Venezuela's priority to boost extra-heavy oil recovery rates in the Orinoco Belt will need big amounts of natural gas for steam generation. Mr. Voght told BNamericas, "Increased demand at both ends could spur the need for further exploration and production, creating more opportunity for PDVSA and potential foreign partners. The Venezuelan market is challenging and companies need to be smart, consistent and tenacious if they expect to gain access. We believe companies willing to work with the government on its terms and capable of negotiating their fundamental investment requirements will have interesting options in the future. However, only investors with a specific goals and a willingness to accept the country's complex political environment need apply." Petroleos de Venezuela SA -- http://www.pdv.com/ -- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. As reported on March 28, 2007, Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured long-term credit rating to Petroleos de Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes due 2027, and US$1 billion notes due 2037. |
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