Venezuela is planning a $1 billion investment to boost natural gas production at home, where demand for gas has long outstripped supply, even as it seeks a role in Bolivia's natural gas sector.
Oil Minister Rafael Ramirez today announced Venezuela's new investment to develop five inland gas fields, to boost production so that the country can meet domestic needs and eventually export as well.
President Hugo Chavez has promised that Venezuela's state oil company would help Bolivia explore for and extract gas after its nationalization of the sector earlier this month, and the two countries are set to sign a series of energy accords on Friday in Bolivia.
But some experts have questioned whether Petroleos de Venezuela SA, or PDVSA, is in a position to offer help given Venezuela's lagging natural gas production at home and the different geological characteristics of their deposits.
PDVSA's new investments would boost output in its northeastern San Tome region from 150 million cubic feet (4.25 million cubic meters) a day to 1 billion cubic feet (30 million cubic meters) a day within five years, he said.
The fields in Anzoategui state hold approximately 6.3 trillion cubic feet (180 billion cubic meters), Ramirez said.
He also said PDVSA would be operating the fields and did not plan to partner with other companies.
Venezuela has the continent's largest proven natural gas reserves with 147.5 trillion cubic feet (4.18 trillion cubic meters), according to government figures