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Exxon Mobil, Chevron, Total, Statoil and BP agree to hand over the control of the JV of the Orinoco faja fields
By Elio Ohep
Petroleumworld
CARACAS
Petroleumworldtt.com 04 26 07ExxonMobil, Chevron., Statoil, BP and Total signed on Wednesday agreements with Venezuela oil company PDVSA to hand over control of the joint ventures of the extra heavy oil Orinoco's Faja fields. Three additional agreements cover the Golfo de Paria Este, Golfo de Paria Oeste and La Ceiba E&P profit and risk sharing projects.
The four extra-heavy crude projects in Orinoco that together are producing around 600,000b/d, Ameriven ( Conoco, Chevron, PDVSA), ( Cerro Negro ( ExxonMobil, PDVSA), Sincor ( Total, Statoil, BP, PDVSA) and Petrozuata ( Chevron, PDVSA).
PDVSA will be assuming the control of all the joint ventures including the day-to-day activities by May 1, but the companies have two months to agree on final the terms of the new relationship. PDVSA is negotiating to have at least 60% stake in every project.
ConocoPhillips and ENI still negotiating with PDVSA over the Faja project, on its Petrozuata faja project and the Corocoro offshore oil field - a risk and profit sharing project - both are run by Conoco, and ENI is a partner in Corocoro.
" ConocoPhillips did not participate in today's signing ceremony. However, the company is continuing its discussions with the ministry," Conoco spokesman Bill Tanner told Dow Jones Newswires.
However, Rafael Ramirez Venezuelan energy minister and PDVSA's president warned that if Conoco and Eni do not agree by may 1st, PDVSA will take over the operations.
" Conoco to date has not signed. What will happen is that we will take control," said Ramírez, who also is PDVSA president.
"We will see how conversations evolve," Ramirez told reporters after the signing ceremony, adding that Conoco is "not managing things well." Ramirez added.
Conoco's partner in the Ameriven or Hamaca project, Chevron, signed with PDVSA, despite Conoco's absence. Ali Moshiri, Chevron's head of Latin America operations commented that "Every company needs to decide on its own," said Ali Moshiri, Chevron's head of Latin America operations.
The foreign companies have to negotiate before July 1, the final the terms, including he compensation for the new joint venture. PDVSA is negotiating to have at least 60% stake in every project.
Ramirez said negotiations over compensation are in an advanced stage. "We have a preliminary agreement on compensation with a majority of the projects," said Ramirez.
Venezuela is only compensating for the book value of these projects, not current market value.The Orinoco Faja Basin is the world's largest Petroleum reserves.
- Elio Ohep, editor@petroleumworld, 58 412 996 3730.
Petroleumworld, April 25, 2007
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