PDVSA Petromonagas worker operating a drilling rig. File Photo.
PetrĂłleos de Venezuela (PDVSA, Venezuela’s publicly owned petroleum company) signed a memorandum of understanding with a Texas oil corporation to operate 3,000 wells in the Orinoco Oil Belt over an 18-month period.
PDVSA signed a memorandum with the Texas company Sunergon Oil aiming to recover 80% of Venezuela’s production capacity over the next three years.
The president of the Latin American Association of Oil Businesspeople of Texas (ALEP), Alejandro Terán, said that this memorandum of understanding and the future contracts that both companies will sign will allow them to operate in more than 15,000 oil wells around the belt and the east of Venezuela.
“The interconnection between Texas and Venezuela, historic for many years, has allowed engineers from both countries to establish commercial ties,” he said.
In an interview with Últimas Noticias, Terán explained that in a first stage, they will operate 600 wells. In the second stage, this will extend to 1,200, and, in a third stage, approximately a year and a half from now, they hope to reach 3,000 wells.
“We will make a significant investment in more than 16,000 oil wells so that, in the next three years, Venezuela reaches production of 3.25 million bpd [barrels per day], thus recovering 80% of its capacity,” stated the ALEP representative.
Sunergon Oil Operation Group LLC becomes the first Texas company to have a license from the US Office of Foreign Assets Control (OFAC) to operate in Venezuela. This was the first permit granted after the US government updated the OFAC license 44A.
Terán pointed out that he believes that ALEP, alongside PDVSA’s workers, will be able to confront Venezuela’s electrical grid deficiencies and operational difficulties.
Likewise, he considered that with the signing of the memorandum with PDVSA, a precedent is established for lifting the illegal US economic coercive measures—euphemistically referred to as “sanctions”—against Venezuela.
During the interview, he recalled that Texas is in crisis and has a deficit of four million barrels. As a result, the state is importing oil and gasoline to cover it.
“In Texas, we are eager to start these operations so that we can efficiently begin the recovery process of this very important industry,” he said.
Terán also announced that, through Sunergon Oil, they will promote the creation of a gas processing system in Monagas to improve the energy required to exploit oil rigs. This will take place through the use of gas for the regional clusters of each of the Venezuelan oil-producing states.
He explained that with this project, the 140,000 gallons of methane gas that are lost daily between Monagas and Anzoátegui could be used productively.
“Venezuela has the capacity to [reach the goal of] one million barrels per day in the next 180 days, which would allow it to stabilize the national and international oil market,” he added.
Terán explained that the concept uses turbines in each oil field to self-generate electricity and thus not deprive the Venezuelan electrical grid, which has been weakened by the US economic war.
In addition, they plan to reuse the gas that is discharged by the rigs, “which will positively impact the surrounding communities.”
(RedRadioVE) by Ana PerdigĂłn
Translation: Orinoco Tribune
OT/JRE/SL
