--> Abstract: Opportunities for Independents in Venezuela, by R. H. Sams; #90987 (1993).

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SAMS, RICHARD H., Sams Exploration, Inc., Canyon Lake, TX

ABSTRACT: Opportunities for Independents in Venezuela

In 1976 the Venezuelan government nationalized its oil properties and expulsed foreign interests. Now relations between the Venezuelan government and foreign oil interests are undergoing a dramatic reversion towards a restricted but cooperative open door policy for exploration and development. In 1991 for the first time since nationalization, Petroleos de Venezuela, S.A. (PDVSA) extended an invitation to foreign oil operators for joint participation in redeveloping four of its marginal oil fields. The Jusepin field within the Eastern Venezuela Basin is one of these fields. Its geology is reviewed as an example of the type of opportunity presently available.

In this initial offering about 200 interested companies applied but only 15 companies actually bid on the 4 areas nominated. Shell de Venezuela and British Petroleum were the only major companies bidding; the rest were independents. One might logically ask then, what kind of opportunity does this represent for the independent oil operator or independent geologist, a windfall or a pitfall? The first round of deals negotiated appears to be no more than a 20-year operating contract, nevertheless by accepting these first offers an early entry into joint participation may be a vital part ofthe learning curve as well as the ticket to later actual product ownership.

For the independent geologist and geophysicist, opportunities for the present seem restricted to high-tech areas such as seismic stratigraphy, reservoir heterogeneity, geochemistry, and 3-D seismic data programs. Opportunities to apply these state-of-the-art techniques to the marginal wells program should be good to excellent.

AAPG Search and Discovery Article #90987©1993 AAPG Annual Convention, New Orleans, Louisiana, April 25-28, 1993.