PDVSA begins process to merge Chevron, Hocol and Perenco JVs

Tuesday, December 9, 2008

The international CVP branch of Venezuela's state oil company PDVSA has began evaluating the combination of three domestic JVs: Petroindependiente, Lagopetrol and Petrowarao, PDVSA said in a statement.

Petroindependiente operates the LL6-652 offshore field on Maracaibo lake. PDVSA has a 74.8% stake and US oil major Chevron (NYSE: CVX) holds the balance.

Hocol, a subsidiary of France's Maurel & Prom, has a 26.35% stake in the Lagopetrol JV that operates the nearby B2X-70/80 field. PDVSA has a 69% stake in the venture.

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French oil company Perenco, meanwhile, has a minority stake in the Petrowarao JV that operates Ambrosio field.

Production from the three JVs is 14,350b/d.

CVP and officials from the three companies agreed to a joint study that would analyze the economic, operational and financial options involved in any possible merger.

PDVSA would maintain at least a 60% stake in any merged JV and officials from the companies are now defining the percentage stake the other JV partners would receive, according to the statement.

Signals first began to emerge in September that PDVSA was interested in consolidating the JVs. The proposed consolidation would not affect any other JVs held by the companies in other parts of Venezuela.