Venezuela Signs Natural Gas Deals
February 9, 2003, 2:45 PM EST CARACAS, Venezuela -- Venezuela has signed contracts with two foreign oil corporations to exploit the country's largest natural gas reserves, the state news agency Venpres said Sunday. ChevronTexaco from the United States and Norway's Statoil were awarded the rights to develop two blocks in the Deltana Platform, off the northeastern Venezuelan coast near Trinidad and Tobago. Energy and Mines Minister Rafael Ramirez said the deal will open the door for Venezuela to enter natural gas markets in the United States, Europe, Argentina and Brazil. Venezuela, which has the largest oil reserves in the Western Hemisphere, is trying to reduce its dependence on oil by developing natural gas. The country depends on oil for almost half of government income and 70 percent of export revenue. The government estimates Deltana Platform has gas reserves of 40 trillion cubic feet. The Deltana Platform gas project could bring in $4 billion in foreign investment in six years, the government said. ChevronTexaco offered the government a bonus of $19 million for the rights to explore block 2 on the platform, while Statoil offered $32 million for block 4. Three other blocks have not yet been taken. Venezuela still must approve the companies' business plans before exploration can begin. 11:49 EST Sunday One less oil price worry: Venezuela is pumping more Howard Dicus Pacific Business News pacific.bizjournals.com As oil prices rise on fears that an Iraq war will interrupt some supplies, a side issue has been the strike that dramatically cut production in Venezuela.
Venezuelan Oil Minister Rafael Ramirez now says his country has built production back up to 1.9 million barrels a day, about two-thirds of its OPEC production ceiling. Exports this past week averaged 700,000 barrels a day.
The good news could remove some upward pressure on oil prices, which have been well above $30 a barrel at the crude level, especially since the Venezuelan problem was actual while the Iraq problem is so far merely potential.
Gasoline prices in Hawaii have risen a nickel a gallon or more in the past month, and are routinely over $2 a gallon Maui.