petroleumworld

Here is a note from Dan Molisky of Dow Jones, where Venezuela's Hugo Chavez realized that he needs the funds and expertise of foreign oil companies of develop Venezuela's vast oil reserves. However, you also need to play his type of game, if not, no way you can enter the arena. You see big players like Exxon, Conoco, that decided they do not want to play Venezuela's game, why ? they just not in accord with Chavez's rules changes to suit his particular needs at any time, as simple as that. !

Venezuela's Pres. Chavez: 'We Need' Foreign Oil Investment

CARACAS -(Dow Jones)- Venezuela President Hugo Chavez, who in recent years has nationalized dozens of foreign companies including oil firms, on Tuesday acknowledged his country needs investment from foreign oil companies.

"Investment and experience from foreign oil firms is necessary in Venezuela," he said. "We need it."

The frank remarks by Chavez, a declared anti-capitalist and Marxist, come ahead of Thursday's long-awaited Carabobo oil auction, where many major oil firms, including Repsol (REP, REP.MC), Chevron (CVX) and Japan's Mitsubishi, are expected to participate.

The auction is for seven oil blocks in eastern Orinoco region, which contains vast reserves of recoverable petroleum.

Drilling has already begun in some parts of the Orinoco, but the government hopes the promising blocks that are part of Carabobo will significantly boost output.

Venezuela produces some 2.3 million barrels a day of crude, according to independent estimates, while the Carabobo blocks alone could produce up to 1.2 million barrels a day by 2015.

Venezuela's economy is in recession and inflation was 27% last year.

-By Dan Molinski, Dow Jones Newswires; 58-414-120-5738; dan.molinski@ dowjones.com

Dow Jones Newswires 01-26-101350ET

Is an independent journalist effort from Petroleumworld, on Inside, Confidential and Off The Record Information, its views are not necessarily those of Petroleumworld - Send Us Your Issues

Legal information: Copyright/Disclaimer

Copyright© 1999-2010 respective author or news agency. All rights reserved.

We welcome the use of Petroleumworld™ stories by anyone provided it mentions Petroleumworld.com as the source. Other stories you have to get authorization by its authors.

Your feedback is important to us!

We invite all our readers to share with us
their views and comments about this article.

Any question or suggestions, please write to:
editor@petroleumworld.com

Best Viewed with IE 5.01+
Windows NT 4.0, '95, '98 and ME +/ 800x600 pixels