Conoco submits phase II development plan for Gulf of Paria West field

Jul 26, 2000 02:00 AM

US Conoco has submitted a phase II development plan for its Gulf of Paria West field in Venezuela to the government and PDVSA, Deputy Oil Minister Bernardo Alvarez told. Conoco, which has asked for an alteration of the terms of its contract to explore for oil, was at risk of losing the 500 mm-barrel discovery.
Conoco, which owns 50 % of the field, along with the Agip unit of Italy's ENI (40 %) and Taiwan's China Overseas Petroleum and Investment (10 %), paid a $ 21 mm cash bonus and offered 50 % of the profits to PDVSA to win the field during the 1997 "risk-sharing" round of Venezuela's oil opening.
Conoco's drilling efforts were rewarded with the discovery of at least 500 mm barrels of 25-degree API crude oil from two highly productive wells. A $ 1 bn development plan was drawn up but shelved because of profitability concerns.
However, under the terms of its contract, Conoco had to submit a phase II development plan by this month or the field would revert to PDVSA. The phase II plan, if approved, would give Conoco two more years to explore the discovery and delineate future production areas. A commercialisation plan will have to be submitted later.
Alvarez said that neither PDVSA nor the government has reviewed the plan yet. The government and PDVSA have 60 days to review Conoco's proposals. If they do not approve the plan, Conoco has the right to submit a new proposal.

Source: Bridge News via Newspage
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