OREANDA-NEWS. On June 29, 2007 in the frames of the working visit of Venezuelan President Hugo Chavez to the Russian Federation, Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee met with Rafael Ramirez, Minister of Energy and Oil, President of Petroleos de Venezuela S.A (PdVSA), reported the press-centre of Gazprom.

The parties discussed the progress with executing joint projects, cooperation prospects in the sector oil & gas exploration and development as well as setting up a joint infrastructure. The parties pointed to the high level of cooperation between Gazprom and PdVSA as well as strategic partnership for both companies.

The participants agreed to start jointly study opportunities to execute new projects in the fuel and energy complex in Venezuela. Therefore, within the existing Joint Coordinating Committee, the parties decided to set up exploration & production and transmission & distribution infrastructure working groups.

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The proved gas reserves of Venezuela account for 4,3 tcm being at the first place in Latin America. The proved oil reserves are at 11,2 bln t (7 per cent out of the world reserves). The annual gas production is nearly 70 bcm. The total gas produced is only domestically consumed. The country does not import or export natural gas. In the Venezuela’s energy balance natural gas, oil and hydropower are estimated at 41, 38, and 21 per cent, respectively.

Petroleos de Venezuela S.A. (PdVSA) being a state owned company is a monopolistic gas producer in Venezuela.

Gazprom runs its business in Venezuela in the frames of the Memorandum of understanding signed between Gazprom and PdVSA in January 2005. The document foresees an opportunity for Gazprom to participate in the project on reserves certification for the Ayacucho-III Block in the Orinoco Oil Belt. Additionally, the parties signed the contracts to develop the General Scheme for the Venezuela’s Gas Sector Development and provide visualization work for the 1st stage of the South American gas pipeline.

In September 2005 was declared the winner of the tender for exploration and development of natural gas fields in the Gulf of Venezuela within the Rafael Urdaneta project (Urumaco I and Urumaco II Blocks). In May 2007 under the terms of licenses issued, the first stage of geological survey was completed and the parties made a decision to drill test wells.