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No Bids In Chavez Natural Gas Auction

From a seemingly surprised Reuters:

Venezuela natural gas auction closes with no offers

CARACAS, Jan 18 (Reuters) – Venezuela’s Mariscal Sucre project, which has estimated reserves of 14.7 trillion cubic feet of gas, has failed to attract private interest after the government invited firms to make offers last week.

Offers were to be made on Friday until midnight.

The government this month improved the conditions it was offering companies to help develop the project, but in the end nobody came forward, private sector sources close to the process said on Monday.

State oil company PDVSA has yet to announce the results.

Last year PDVSA invited a group of companies including Japan’s Marubeni (8002.T), Mitsui, Mitsubishi and Itochu, Norway’s Statoil (STL.OL), Russia’s Gazprom and Italy’s ENI (ENI.MI) to consider taking part in the project.

Spain’s Repsol (REP.MC) had also shown interest but did not make an offer.

PDVSA forecasts that the field will produce 1.2 billion cubic feet per day.

Compare and contrast this auction with the recent auctions in Iraq. Where everyone (except of course the United States) is snapping up contracts for gas and oil like hot cakes.

Iraq is now considered a safer bet than Venezuela – even by the Russians.

This article was posted by Steve on Monday, January 18th, 2010. Comments are currently closed.

5 Responses to “No Bids In Chavez Natural Gas Auction”

  1. BillK says:

    Let’s see – invest millions of dollars on drilling wells and installing infrastructure, and then when your wells produce the Govenrment summarily “federalizes” them without paying you a cent.

    I don’t know why private industry would have a problem with that.

    Perhaps they should just do it all on Venezuelan credit and then be pronounced “too big to fail” instead.

  2. proreason says:

    Much better to whore your company to the Obama administration.

    That way you can be assured that after the skim, the company with the sweetest kickback will be able to run roughshod over the losers and stuff it’s executives pockets with cash.

  3. Rusty Shackleford says:

    I’m sure El Guappo is shocked (shocked, I tell you) that nobody bid.

    Where’s the love? *sigh*

  4. NoNeoCommies says:

    Hey El Diablo Chavez!
    I think that sulphur smell is from your head’s current location.

  5. Liberals Demise says:

    I bid .50 cent to shove a gas pipe up Hugo’s a$$.
    “Happy Motoring”

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