Repsol says to start development of Venezuela Perla gas field
New York (Platts)--23Dec2011/1146 pm EST/446 GMT
Repsol, Eni and Venezuela have agreed to a supply deal that will lead to
the development of Venezuela's giant Perla natural gas field, Repsol said
The first phase of development is expected to cost $1.5 billion,
including the "exploration and evaluation phase" in which 300,000 Mcf/d is
expected to be produced, Repsol said in a statement.
Signed by Repsol Chairman Antonio Brufau, Eni Chairman Paolo Scaroni and
Venezuelan Minister for Oil and Mining Rafael Ramirez Friday in Caracas, the
25-year supply contract runs through 2036 and calls for the supply and
purchase of more than 8 Tcf of gas, Repsol said.
Speaking at the signing ceremony at PDVSA headquarters, Ramirez, who is
also president of the state company, said the partners "have arrived at a
deal that allows us to build infrastructure necessary to begin to produce
natural gas and deliver it as soon as possible" from Perla.
"We are going to begin accelerated exploitation of our natural gas
reserves," Ramirez said in televised comments in Caracas. "We will certify at
least 400 Tcf of natural gas in our country, along the coast as well as on
Repsol and Eni each hold a 50% stakes in the Cardon IV block in which
Perla is located, but development will be divided between the Spanish and
Italian companies, each with 32.5% stakes, and Venezuelan state PDVSA, which
will have a 35% share.
The gas from the shallow-water offshore field in the Gulf of Venezuela
will be piped onshore and distributed though the country's distribution
network, including for industry, Repsol said.
Perla holds more than 16.3 Tcf, according to Repsol, which discovered the
field with Eni in 2009. Since its discovery, five wells have been drilled and
these will now be put into production using offshore platforms, Repsol said.
Production is to rise to 1.2 Bcf/d over the next two phases and kept at
this level until the end of the contract in 2036, Repsol said.
Perla also "offers new opportunities for natural gas exports, which
Repsol and Eni will analyze with PDVSA and the oil ministry," Repsol said.
"This is a flagship project to which without question we will dedicate a
major amount of effort, as we do to Orinoco Belt projects" of heavy oil
production elsewhere in Venezuela, Brufau said at the signing ceremony.
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