Offshore staff
(South America) - Venezuela awarded on November 15 the Cardon IV block in its Rafael Urdaneta natural gas project to Repsol and ENI for $34.3 million in the second round of bidding on the offshore development, according to the Energy Minister Rafael Ramirez.
Petrobras and Teikoku were awarded the Moruy II block in the Gulf of Venezuela project for $19.5 million.
A third block in the five-area auction, Castilletes NE II, went to Venezuelan firm Vinccler Oil and Gas for $7.3 million.
The Cardon II and Urumaco III areas were not awarded.
The Rafael Urdaneta project, which comprises five fields located in the Gulf of Venezuela and in the western state of Falcon, is estimated to hold a combined 728 bcm of gas.
Venezuela opened the bidding rounds on the project to draw investment to increase natural gas production in the west of the country and fill a supply deficit there.
In a first bidding round in September this year, Gazprom won two blocks in Rafael Urdaneta while Chevron won one block.
Officials said Gazprom would pay $15.2 million for the Urumaco I block and $24.8 million for the Urumaco II block while Chevron will pay $5.6 million for block Cardon III.
The winners of the bids can explore their blocks for 30 years, averaging an estimated investment of $61.2 million, says Ramirez.
Ramirez, who is also president of the state-owned oil company Petroleos de Venezuela, says that bidding for gas concession is now concluded for the year. The government plans to resume bidding on eastern blocks in 2006
11/16/05
