• Submitted by: manso
• Business and Economy
• 12 / 27 / 2010

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The Venezuelan national assembly granted Petrolera Vencupet S.A. the right to explore for heavy or extra-heavy crude in Venezuela.

According to Decree 7.923 published Dec. 21 in the Venezuelan Gaceta Oficial, the Venezuelan-Cuban joint venture will be allowed to search for oil in three areas of the Orinoco heavy-oil belt, bridging the border between Anzoátegui and Monagas states. The blocks in question are Oficina Central, Ada, and Lido-Limón.

Vencupet is also allowed to improve the heavy oil it produces.

Under Venezuelan law, the state has the exclusive rights over oil.

The  joint venture between PdVSA subsidiary Corporación Venezolana de Petróleo S.A. and Comercial Cupet S.A. was founded in April. The Cuban partner holds 40 percent of the joint venture. According to a previous decree that set up the joint venture, Comercial Cupet will pay $17.3 million for its share. State oil company PdVSA will be the sole buyer of oil and gas produced by the joint venture, set up for 25 years.

Source: www.cubastandard.com/2010/12/25/