Energy minister Rafael Ramírez made the surprise announcement this month during his US tour, where he tried to whip up enthusiasm for the sale as well as reassure US clients that PDVSA is once again producing normally.
The last auction for Deltana blocks proved a major embarrassment to the Chávez government, which had estimated that developing the estimated 30 trillion cubic feet of natural gas would bring US$4bn in foreign investment to Venezuela within six years. In fact, the BG Group pulled out of talks for Block 2 at the last minute, while TotalFinaElf's offer for Block 3 was derisory, at just US$100,000.
Why PDVSA believes Block 3 is likely to prove more attractive to the multinationals a few months on is unclear. Meanwhile, Block 5 is situated in deep water and is so technically challenging that it is unlikely to tempt many bidders when so many rival gas schemes are in development around the world.
Ever optimistic, the energy ministry has announced that eight companies are interested in the two 3,000-km blocks, although most are likely to fall away before bidding begins.
More enticing, though, are the seven new offshore blocks up for licence in the Gulf of Venezuela and off the western state of Falcón, in part because they are believed to possess some oil deposits as well as natural gas.
But the giant Tomoporo oilfield is the real jewel in PDVSA's crown. PDVSA estimates this western field could produce as much as 250,000 barrels/day by 2008, and its estimated recoverable reserves are around 1 billion barrels. PDVSA wants to develop the deposit in partnership with a foreign major, and hopes to complete the licensing process by mid-2004.
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