Total launches natural gas exploration project in Bolivia

[Judi Lynn]

Total launches natural gas exploration project in Bolivia

09-02-10 French oil company Total has launched a natural gas exploration project in Bolivia that may lead to an investment of some $ 500 mm in the Andean nation, a company executive said.

Foreign energy companies present in Bolivia, including Spain's Repsol, Brazil's Petrobras and Total, froze investments in the country after President Evo Morales nationalized the natural gas industry in 2006. But in late 2009 a consortium led by Repsol said it plans to invest $ 1.5 bn to boost natural gas output, in a move that analysts say signals that companies are willing to invest in Bolivia if the country finds new markets for its fuel.

The manager of Total's Bolivian subsidiary, Jean Daniel Blasco, announced his company's plans in a ceremony to mark the launch of an exploration project at its Incahuasi Block.

"If there are positive results (with the drilling), we'll be able to develop the field... with an investment of around $ 500 mm," he said in the ceremony broadcast by the national television network. Total will invest some $ 70 mm to drill a well before deciding whether to invest further, said Blasco.

More:
http://www.gasandoil.com/goc/company/cnl101200.htm

[protocol rv]

1. Interesting

I wonder, what happened to the nationalization movement Evo Morales was pushing for several years ago? He must have got a dose of reality.

[Peace Patriot]

2. Typical of your rightwing views: 'Alice in Wonderland' inside out, upside down & backwards.

"I wonder, what happened to the nationalization movement Evo Morales was pushing for several years ago? He must have got a dose of reality."--protocol rv*

The opposite occurred: Total and other multinationals FACED THE REALITY of Bolivia being a SOVEREIGN country with a hugely popular LEFTIST government that the U.S. could not overthrow by funding/organizing a rich, white separatist insurrection (2008), and were compelled to agree to Bolivia's SOVEREIGN control of its natural resources and its RIGHT to set the terms of use and to DEMAND that significant profit from its resources be used to BENEFIT THE PEOPLE WHO LIVE THERE.

Venezuela's Chavez government did the pioneer work on these DEMOCRATIC principles, in its negotiations with Exxon Mobil and others. Now Bolivia, Ecuador and other countries--even Brazil--are following that example and asserting their SOVEREIGNTY over their resources.

Those who play by these new DEMOCRATIC, LEFTIST rules, can profit from these resources; and those who won't agree--who want ALL the profits, who seek to control the government, like Exxon Mobil--are on the outs.

Venezuela just signed up six multinationals, from as many countries, for oil development ON VENEZUELA'S TERMS. This is the "dose of reality" that the LEFT has given multinational corporations--the reality of the PEOPLES' RIGHT to schools, health care and other benefits from their own resources.

----------------------

*You have yet to apologize for your racist comment about "Indians," here (in your defense of Chevron-Texaco)...

Comment 36: “Indian presenting a complaint?”
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=405x30994

[Judi Lynn]

3. Thanks for setting the record straight, Peace Patriot.

The Bolivian people are taking BACK their country from the lethal, fetid, Nazi-loving, vicious, torturing, murderous, greedy, doomed white supremicists, no matter how many liars spend their lives trying to convince knowledge-impaired people it's otherwise.

[protocol rv]

6. Comment: Countries never lose sovereign control of resources

Countries never lose sovereign control of resources when they allow private industry to exploit said resources. In other words, your claims are based on falsehoods. What Bolivia did was change the contractual framework and increase the natural gas export price - this in turn led the Brazilians to begin development of their own natural gas resources, which in turn will cut Bolivia's ability to market its gas.

Venezuela just signed preliminary agreements on negotiated terms. The Carabobo bid round and other negotiated agreements were and continue to be delayed because the negotiations are still ongoing. The companies refused to accept Venezuela's terms, and thus Rafael Ramirez had to go back and ask Chavez to give him the go ahead to change said terms. Right now they're hung up on the issue of the international banks' ability to use international arbitration should PDVSA change the terms for the JVs backing the bond issues.

Furthermore, ExxonMobil never demanded all the profits. ExxonMobil, ConocoPhillips, and other companies which walked out were concerned over the lack of protection set for the new JVs, due to the elimination of national arbitration. This is the international arbitration being demanded by the multinationals now (and this includes the Russians and the Chinese). Also, the legal structure under which ExxonMobil invested in the Orinoco Oil Belt did not give ExxonMobil sovereignity, nor control. Control always resided within PDVSA and the Ministry. Whether the government officials like Dr Mommer knew how to exercise such control is a different matter.

Do you want me to teach you some more about the subject? I can teach you what's really going on if you ask questions, nicely. :-)

[Bacchus39]

5. he'll wait until the investment and infrastructure is there and then take it

like Chavez.

PP has never been to latin america so isn't aware that Latinos are not hung up on political correctness like in the US. the fat guy is el gordo, the black guy is el negro, indian indio, the gringo is el gringo, the morena girl is la negra or negrita, the asian guy is el chino (no matter which country he is actually from) catire is blonde in Venezuela, and blonde is mono/mona (which actually means monkey) in Colombia

the lack of knowledge of cultural norms in latin america seems to be why PP is troubled.

[protocol rv]

7. Oh, forget it

I'm not worried about his fixation with the use of the term indian, as we like to use it. At least he isn't accusing me of being an anti feminist dwarf because I let my wife put away the cups in the kitchen.

But I don't think Evo Morales is going to take much in the future. The companies are willing to do some work in Bolivia because in the end Morales didn't follow the same path used by Venezuela - the companies decided to play hardball and it worked for them. One of the reasons was the sheer lack of experienced manpower. As you know, Chavez decided to go ahead without the experienced manpower, fired most of the PDVSA personnel, and went ahead and encouraged the multinationals to pull their personnel out. This has led to a serious drop in oil production, and the inability to increase gas production.

But Bolivia is a much poorer country, and Morales realized right away he couldn't make the same mistakes, so he backed up and became a lot more conciliatory. He also realized the personnel PDVSA was sending to Bolivia wasn't qualified to help much - PDVSA isn't able to handle its own business now, they're less able to help anybody outside Venezuela.

I have relatives in the oil industry in the Maracaibo area, and they're fully aware of the internal workings in the industry. It's slowly being killed by incompetence and lack of maintenance and investment. The government's dreams to increase production are just that, dreams, rather than going up, production is going down (this is one reason why they don't publish monthly figures by field anymore, and why the national statistics don't agree with what OPEC uses, they lie about the oil production figures). The multinationals are like vultures waiting around, flying in a circle above our heads, until PDVSA is so weak they can come down and have a feast. This Socialism of the 21st century is baloney.

[Judi Lynn]

4. Japanese firms acquire Venezuelan oil field rights

Japanese firms acquire Venezuelan oil field rights

08-02-10 Major petroleum development company Inpex has acquired the development rights for part of the Orinoco oil field in eastern Venezuela with Mitsubishi, according to Inpex.

Observers say the development rights for a part of the giant oil field could help secure a stable supply of energy for Japan, which depends on the Middle East for 87 % of its crude oil procurement.

The two companies are part of a group of firms that won a bid for the development rights of the Carabobo area, which has an estimated 2 bn to 2.5 bn barrels in oil reserves, and will be able to produce about 400,000 bpd when it is scheduled to reach peak production in 2020.

Inpex and Mitsubishi will each hold a 1.25 % stake in development rights. Venezuela's state-run oil company Petroleos de Venezuela will have 60 % stake and Chevron Corp. will have a 34 % stake.

More:
http://www.gasandoil.com/goc/company/cnl101201.htm

[protocol rv]

8. Inpex and Mitsubishi grab 1,25 % stake in Carabobo block - Wow

LOL. The Japanese use these small interests to get information so they can sell equipment to the project. They get to sit in the board of directors and then send the information to their marketing people. If I were in charge, I would forbid such arrangements. Also, check to see how much expertise these guys have developing oil fields.

I'd like to add a little more about this famous Carabobo bid round: PDVSA announced three sets of blocks would be offered. They received bids for two - from one consortium each. One block was left deserted - no bids. The two consortia (one led by Repsol, the other by Chevron) are still negotiating the fine print, neither has made a real commitment to invest, nor are they hiring Venezuelans in the numbers one would expect if they were serious about investing. The government broke the law when it entered into deals with companies such as ENI, the Russian Consortium, and the Belarussians, handing over blocks without having a proper tender and receiving bids. And none of those companies are making real investments either. They are negotiating and waiting for the right terms from the government, including the (gasp) dreaded international arbitration clauses they need before they can go ahead.

My hunch? They're waiting to see if the electricity crisis leads to a general collapse of the economy, and for the subsequent elections in September. Meanwhile, they're happy to sit and sip their whiskys at the gulf club. Like I said, they're like nicely dressed vultures.