PDVSA'S Exploration Bidding Round
he bidding program of exploratory areas of
PDVSA took place in Caracas from the 22nd to the 29th of January; it was a success
because of the ten (10 ) exploratory areas offered by CVP, the affiliate if PDVSA
responsible for the areas, eight (8) received firm offers and only two (2) did not. The
Venezuelan Congress will authorize the signature of those contracts.
The companies which won the different areas, with their corresponding PEG
(Government Take in Profits) and cash bonus, are the following:
Details of the Bidding
| AREA |
WINNING COMPANY |
PEG |
CASH BONUS (Milions $) |
| La Ceiba |
Mobil, Veba y Nippon |
50% |
104 |
| Golfo de Paria Oeste |
Conoco |
50% |
21 |
| Golfo de Paria Este |
Enron e Inelectra |
29% |
-- |
| Guanare |
Elf Aquitaine, Conoco |
50% |
-- |
| El Sombrero |
no bidding |
-- |
-- |
| Guarapiche |
BP, Amoco y Maxus |
50% |
109 |
| San Carlos |
Perez Companc |
40% |
-- |
| Punta Pescador |
Amoco |
50% |
11 |
| Catatumbo |
no biding |
-- |
-- |
| Delta Centro |
LL&D, Norcem y Benton |
41% |
-- |
The areas Sombrero and Catatumbo were offered again on Monday the 29th of January
as was established in the bidding process, but none expressed interest.
We consider that the process was successful because it was absolutely transparent and
because the majority of the offers have a PEG of 50% and the cash bonus total was $
245 million.
The government will like to see a program of $500 million in the first two years and an
overall investment of $ 12 billion in investments over the life of the program. In the first
two years, the companies will concentrate in seismic and exploratory drilling. It is
hoped that this program will stimulate the economy because of its multiplier effect over
the rest of economic activity.
Translation by Carlos Armando Figueredo
URL: http://www.internet.ve/analitica
Mesage to the Author: eleal@ccs.internet.ve
