Venezuela will help YPF explore for hydrocarbons in fields next to the Falklands
Venezuela’s government oil corporation, PDVSA, in considering with Argentina’s YPF exploring for oil and gas in the area next to Falkland/Malvinas waters, revealed the president of the corporation and Minister of Petroleum and Mining.
“We talked about the need to explore for oil and gas in the Argentine territory and also off shore, in the areas next to the Malvinas Islands, but first we must analyze costs and timings”, said Rafael Rodriguez Carreño in a Sunday interview with Pagina 12, a Buenos Aires daily very close to the government of President Cristina Fernandez.
The Venezuelan official said he held talks on the issue with YPF CEO Miguel Galuccio during the meeting held in Buenos Aires last week when potential agreements between the two government oil corporations (PDVSA and YPF) were addressed.
London AIM listed exploration companies recently found good prospects for oil in Falklands’ waters and one of them, Rockhopper Exploration, reached an agreement with UK Premier oil, involving a billion US dollars for the development of hydrocarbons resources from the very promising Sea Lion prospect.
The Argentine government was furious with the announcement and again warned that all those oil and gas companies and their logistic supporters and providers will be exposed to fines and other measures under Argentine Law.
The Falklands government brushed aside the threats and London reiterated support for the Islands to develop its own oil industry in the South Atlantic waters.
Rodriguez Carreño said the financing for such joint operations and other projects in Argentina will much depend on strengthening the undertakings between the two companies combined, in Venezuela.
“We have a field in the Orinoco belt with a daily production of 130.000 barrels and we are planning to increase that to 160.000 bpd. This together with a second field to develop could take the production to over 200.000 bpd. The idea is to create a Transitory Unit of enterprises (UTE) and with those assets we can plan the financing of all those developments we are programming in Argentina”, said the Venezuelan minister.
The heavy oil Orinoco belt in Venezuela covers an area of 55.134 sq kilometres with proven reserves of 235 billion barrels.
Finally Rodríguez Carreño said that Venezuela is following closely the activities of Repsol and calls for caution about the Spanish company’s warnings to Argentina after the government of President Cristina Fernandez seized last April 51% of YPF from the Spanish corporation.
“Repsol should think twice before it pretends to attack YPF… we don’t threaten. What we are saying is that we are consistent with criteria, and we won’t allow the Argentine nationalized company to be run over” by anybody. “Natural resources in Latin America and particularly in Mercosur belong to the member countries”.
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49 comments Feed
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After the avalanche of medals at the Olympics only a military spat with an uppity tin pot little country would boost the nations spirits higher.
I think he meant to say, “Natural resources in Latin America and particularly in Mercosur belong to Venezula”. I can't see Venezula or Argentina giving Brazil and Uruguay (or even poor Paraguay) a share in any profits that they might make.
It'll be interesting as to whether it's Argentina or Venezula that get's screwed here. Argentina and it's cap on oil prices that make exploration unprofitable, or Venezula who may just decide to keep the oil for themselves (after all they are now the self-proclaimed leaders of Mercosur).
However, as stated on posts above, as long as they stay out of the Falklands EEZ they can do whatever they like, step a toe over the line and they'll be visited by the Royal Navy and their assets seized.
By the way, does anyone know if either Venezula or Argentina has the right equipment to drill offshore? If they don't then buying it in could prove a very expensive start to the venture.
Seems like a case of 'anything you can do I can do'.
Chavez and CKF, a match made in hell, not a braincell between them, still if they want to carry on a love affair across 2,500 miles to unify their oil industries in someway that's up to them but it shows argentina hasn't the funds to go it alone.
The UKs closest allies at worst view this as an issue between the UK and Argentina. Of course it is actually an issue between the FI and Argentina but that would be complicating the argument.
If Argentina and Venezuela attack the FI the UKs closest allies would, at first warn Venezuela that it is non of their business and to butt out. If Venezuela ignore this warning the the UKs closest allies would put military pressure on Venezuela and force them to butt out.
In any case what Argentina do in their own waters is their own business. A waste of time and resources due to all of their untapped resources actually within their land borders which would be far easier and cheaper to tap. However this is a political gesture and time and money is not an issue in Malvinista politics. Well it is but they don't realise it because their ideology blinds them to political and economic reality.
And two Venezuelan vessels fishing of the French colony of French Guiana have just been impounded by the French and will be dismantled and destroyed.
Chavez is all mouth and no trousers.
Go PDVSA & YPF!!!!!!!!!
Pot and kettle spring to mind when you tried to insult Alexei.
@8 Eddieposted
You're right about Chavez. They are always 'brave' when taking on someone weaker than themselves, but when faced with someone who can fight back they tend shout a lot and beat their chests. A bit like the Argentinian government really, as they seem to do this a lot too, that is when they are not crying on the world stage about how life is so unfair to them.
Maybe in their minds they believe that the public in their respective countries will see them as 'strong' if they can shout loud. So the louder they shout, the stronger and 'braver' they are. But like most politicians around the world, it's all just so much hot air.
“Do you know the Venezuelan belic power?”
Venezuela's “belic” power is one hilarious joke compared with the “belic” power of the UK!!!!!!!
Anyone think argentina will pump money into this oil project out of national pride? (& we all know what happens went you put national pride before economic reasoning. uneconomic oil).
Oh go ahead 'belic' man, bring it on, make our day :) This is Britain (and NATO) you're p*ssing off, not Columbia. You did see what happened to Chubby Chavez's mates Gaddafi and Saddam?
static.guim.co.uk/sys-images/Guardian/Pix/pictures/2011/3/3/1299183978442/Muammar-Gaddafi-Hugo-Chav-007.jpg
online.wsj.com/media/saddamchavez_art_257_20080220170425.jpg
Chavez is a jinx. I wonder who's next?
i.telegraph.co.uk/multimedia/archive/02095/chavez-fernandez_2095829c.jpg
I see your lot recently invaded French territorial waters. How did that work out for you? Oh yes, they sank your silly little boats LOL :)) Get shirty with us and we'll sink the rest, and do the same to that ex-Soviet junk you call an 'air force'.
Same goes for o/g, they can't even get anyone to explore ON SHORE much less OFF SHORE. Gads they are pathetic,
Why isn't that CIA cancer working faster!!
I wonder what CFK will do when Chavez is gone? She is putting herself in quite a pickle.
Integrity and being held accountable arent that big in populist Latin American politics. She will change her tact to suit her -whatever she needs to do -and hardly anyone will truly challenge her lack of integrity. Least of all herself.
Guzz, we're talking about huge prospect areas with many potential reserviors, some in Argentine waters, some in Falklands waters. Judging by your post it appears that your knowledge of oil exploration is stops at what you gleaned from watching There Will Be Blood.
Your straw isn't long enough to drink our milkshake pal.
@17 Is that both sides of your head? Best way to demonstrate that there's nothing inside! Bash this and listen to the echoes...echoes...echoes!
@19 Please don't upset the little wanker. How about a new name for “Guzz”? What about “sh*tonastick” so that he can still get some pleasure from his “appearances”? Or perhaps, in a tribute to his wish to be “American”, he could be “AR****** Constipation”. And please don't mention anything that gets him thinking about sucking.
#2 i am sure Italy, France and USA would rather get all their food stuff from Fakland holdings then Argentina or mercosur. But I doubt fakland holdings can plant enough crops to feed everyone, I guess you might know more then me.
#3 an H-bomb should put an end to the war mongers and a nuclear defense program should make things right for everyone. There's nothing better then a fair fight, the threats from USA and UK should serve as a reason for latin America to build a nuclear defense program.
#4 I wonder how is the royal navy going to populate Islas Malvinas Argentina if a nuclear bomb or a H-bomb tests destroys the island.
#5 we have mercosur now there is no need for capital anymore when trade will do.
#7 I think it was Argentina and Brazil who proclaimed Venezuela to be part of mercosur, chavez did his work as it's usually done in this cases, but had to admit that he couldn't pay paraguay more then USA did.
#8 the dutch and french better not hope for oil from Venezuela, Argentina or Brazil or own any interest in mercosur bloc because they will surely loose it in the long run, the bloc didn't unite just to look pretty. Venezuelas integration was a hint to suggest the gloves are off.
#12 that's why I support a nuclear defense program in latin America that way there is no hot air but a big mushroom cloud followed by Pease and silence and a solution to the illegal aliens and pirates problem in Islas Malvinas Argentina.
#13 I like fair fights and for this reaon I also support a nuclear defense program for our brothers in Venezuela to eliminate the threats coming from UK, France and the USA.
#14 a nuclear defense program in Venezuela, Argentina or Brazil will put and end to all the war mongers. MAD worked for Russia and USA I think it's time mercosur put their scientists to work too.
Proper countries had H-bombs in the 1950s.
Your obsession with your tin pot banana republic getting hold of one just shows how obsolete you and your knowledge are.
The countries that had H-bombs in the 50s spend the next 3 decades developing technology to stop their enemies delivering H-bombs. So if you eventually fulfil your little fantasy of getting a second hand leaky Chinese built (i.e. won’t work) H-bomb, the only place you will be able to deliver it will be your own Rioja province or maybe Salta.
Poor little Pie Humper.
“I like fair fights” - that's why a country with a population of 40,000,000 invaded a country of 3,000.
Why do you feel threatened by a small loser country like the UK ?
When did the UK ever threaten to use nukes against you. ?
We had nuclear weapons in 1982 but there was never a moment they would have been used against your backward people.
Another thought, how are you going to deliver it ?
In previous posts you described your armed forces as homos and child molesters and that you would have nothing to do with them.
I presume that you will man a nuclear sub and deliver it solo or paddle out in a big canoe and with a cry of “banzai” immolate yourself and cover your beloved country with nuclear fall out
You really do live in a fantasy world - dream on oh master of the universe whose God like pronouncements make us lesser mortals quake in terror. We crave more of your wisdom !
Can you imagine a deep water drill rig working for this bunch, unless they get the money up front. I think thay cost about 2 or 3 million USD a day to hire. Probably more for these tossers because of the risk of the rig being stolen.
This will be another 'we will take you to court' comment - it will never happen.
#26 I see another BP oil spill happening in fakland very soon. Cross your fingers our friend never finding my. It be hard to stop a boat from knocking them rugs down, let's hope the brits have enough insurance money to cover the fish industry for a decade to come.
You really need to stop using drugs as they are destroying whats left of your mind.
BP aren't drilling in the Falklands EEZ, they are drilling for Brazil. The damage any oil spill could do would depend on the currents in the Atlantic ocean, and would more than likely destroy Argentina's fishing economy before damaging the Falklands.
But you don't care about that do you? I mean you love Argentina sooooo much you live in a different country. Wow, what a way to show how much you love your country by moving to a new one, although one has to wonder if Argentina kicked you out, because even they must have standards when it comes to rabid Malvanistas.
Let's face the facts.
Such disaster could happen again since BP is simply incompetent.
The damage done by BP in the Gulf of Mexico 2 years ago was due to incompetency demostrated by BP and subcontractors on cementation rules and safety.
Such BP incompetency destroyed the fishing economy of several US states and cost BP billons of US dollars to clean and pay compensation to the US fishing economy.
Having such incompetent safety records BP should not be permitted to do any sea oil exploration in Brazil to avoid such disaster like the one in the Gulf of Mexico!
No, they can leave spilling oil, and not admitting it until found out, to Petrobras. Check your facts.
“Ignorance is a blessing” - correct, you demonstrate this every time you make a posting here
Country -definition :-
The Montevideo Convention on the Rights and Duties of States was a treaty signed at Montevideo, Uruguay, on December 26 1933.
The convention set out the definition, rights and duties of statehood. Most well-known is Article 1, which set out four criteria for statehood, as quoted below.
The state as a person of international law should possess the following qualifications:
(a) a permanent population;
Applicable to the Falklands
(b) a defined territory;
East and West Falkland S.Georgia and the S.Sandwich Islands
(c) government; FIG
and
(d) capacity to enter into relations with the other states.
The UK, the EU, Australia, New Zealand etc.
Article 3 of the Convention also declares that statehood is independent of recognition by other states, so a country can exist even if other countries don't recognize it.
The Falklands meets all these criteria.
Can your tiny brain absorb this ?
Of course, you only believe what your government has rammed down your throat before you could walk. It is sacrilege to question Holy Writ.
@31 Clyde - Nice post - all grist t'mill
BTW news is that Yorkshire (if they were a country - no *don't* start that debate!) have won something like 8 gold medals and would be about number 7 in the medals table. Sadly, I come from Buckinghamshire and we gave Milton Keynes their independence a few years back (that's seld determination for you!) - otherwise we could at least claim the long jump gold
Do please tell me what Offshore Safety and Environmental Standards do YPF and PDVSa work to?
Do you understand that if they end up drilling in your waters west of the Islands - and have a disaster- it will come our way- and Arg and those companies will get the bill!
And the slide to conflict begins,
The bear has influence over the cubs,
And so the birds will sing,
CFK will go to hell,
And Hugo to his coffin.
????????????
.
Both sides aren't drilling. Only the Falkland Islands are drilling. Argentina has said it was going to drill with financial help from Venezula, but I doubt either of these countries have the right equipment for off-shore drilling just lying around waiting to be used, any more than they have experts in off-shore drilling waiting to leap into action.
This means that they will have to pay an oil company to drill for them, which could turn out very costly indeed. They will have to either hand over a sizeable percentage of the profits to this company so they would be willing to drill, or rent their services by the day.
Now since Argentina 'nationalised' YPF, oil companies around the world would be reluctant to trust Argentina not to appropriate all the profits for themselves, so they would be reluctant to explore for oil. They may, however, accept renting out their assets and their experts for millions of dollars a day, to be paid up front and in dollars. Payment not received, then drilling stops, and the well abandoned.
So I think it will be some time (if ever) that we see 'both' sides drilling for oil in the South Atlantic. I may be wrong, but time will tell.
Told you I didn't think the Argentos would need the Chinese after Ven inclusion, and of course Ven has the equipment and the know-how. They are after all one of the major oil producers of the world. That said, personally I think it's a waste of resources for Arg and the islands to work separately in the same region, makes non sense in my sustainable utopia...
I agree that it makes more sense to work together, but it was the Argentinians who walked out on the treaty, not the Falklanders, and the Argentine government who refuse to talk to them.
In fact the Falklanders have offered talks on subjects that are mutually beneficial but CFK's government haven't responded and they the offer was delivered months ago. It seems that CFKs pride is getting in the way of what is best for Argentina as well as the Falklands.
Regarding Venezula's oil, it's not all roses, and they are used to to drilling for on-shore oil not off-shore which takes specialst rigs and people, which is why I doubt they'll be abe to start drilling in the near future, and the initial costs will be high because they have to rent or buy the equipment and employ experts.
Venezula's largest oil company appears to be in financial trouble too.
www.petroleumworld.com/storyt12080602.htm
www.usatoday.com/money/world/story/2012-05-28/venezuela-oil/55248628/1
It sounds like Venezula needs this oil too, especially if they are going to honour Chavez's promise to double Venezula's oil output by 2019.
But will Venezula's need clash with Argentina's need? It'll be interesting to see how this pans out. But as stated previously what Argentina decides to do regarding drilling is their concern alone, unless they try to impinge on the Falklands EEZ.
“personally I think it's a waste of resources for Arg and the islands to work separately in the same region, makes non sense in my sustainable utopia...”
You're not doing anything though, just talking about doing things. So your 'sustainable utopia' as you call it is already here....under the Union Jack.
No worries.
-2 The food would come from the Falklands (ever seen a starving Falkland Islander?), Chile and the UK-no need for it to come from anywhere else.
-3 The A bomb would have to get past the UK defences. It can't if there is a T45 destroyer on station-
You can't drop it from an aircraft -that would get shot dow.
You can't fire it in a small missile-that would get shot down.
From a sub? Argentina got cruise missiles?
The likelihood is if Argentina launched a nuke from land a T45 would shoot it down before it left Argentine territory.
Apart from the fact this is your unattainable fantasy.
-4 The Falklands are already populated. Again how could a nuke, other than an intercontinental ballistic missile, get past a T45?
-8 I don't think France or Holland are bothered by Veneuzuela-whose oil company is in financial difficulties.
-14 How is mercosur going to afford a nuke programme?
If you are the guy in Canada, what do you think about the fact that your hosts support self-determination (expressed at OAS), in the Falkland Islands?
Is willing to hide a mini nuke under his vest,
And carry it for her,
You never know, as such a loyal and indoctrinated patriot , like pirate
Would be only to willing to give his life for his queen,
End of conversation, bang goes the pirate, and all who stands inside him. Lol.
.
Yes Pirat-hunter is very brave from behind his keyboard. And he loooooves Argentina soooooo much he left to live somewhere BETTER.
Poor PH must have guilt or something. But think on this PH, if you have emigrated to Canada, you are Canadian. Forget Argentina, its going down the pan very fast with the help of CFK and her cronies, you don't want to be associated with that.
Canada, on the other hand, has a bright future ahead, especially in the bio-fuel industry, although they have plenty of natural gas and oil too. I was based in Alberta, and you couldn't move for the oil and gas industry, plus they produced great beef too, at really cheap prices. My favourite restaurant was Montana's in Medicine Hat. Cheap as chips, but excellent quality food.
Maybe you should ask your doctor for the name of a good shrink, who can help you overcome this psychosis.
In the meantime, Venezula's main 'nationalised' oil company is in financial trouble (what with Chavez p!ssing all the profits away), just like YPF is in financial trouble. International oil companies have pulled out of Venezula, leaving them without the expertise or the equipment to refine their own oil. So they can get it out of the ground, then they have to pay someone to refine it for them!
I find it unlikely that this partnership will be able to garner enough captial to start off-shore drilling, and no oil company worth their salt would do business with Argentina or Venezula (as both countries always tend rob their profits), so I don't forsee any drilling by either Argentina or Venezula.
The Falklands, however, are well ahead, with oil companies very willing to invest in drilling around the islands.
Maybe the Argentines should get back down on their knees and start begging the Chinese again. I doubt it would work, but then again you could always hope for a 'pity' loan. On the other hand, China's economy is slowing down, so they won't invest in dodgy deals with Argentina.
Guzz, I can tell you as an ex-oilman that Venezuela has no serious ability to carry out oil operations.
Chavez sacked the people who were running the oil industry and stuffed his own military officers into those positions. The result is there for all to see: catastrophic collapse in oil production when of course as time goes by it should have increased.
It is laughable to suggest that Argentina and Venezuela have any ability to carry out deep sea oil exploration, lacking experience, the necessary finance or the ability to raise the finance. Who is going to loan these clowns the money for starters?
Deep sea rigs capable of doing the work are booked up for years as are their experienced oil workers. When I finished with the industry I was fed up with the number of job offers that came in for at least 12 months until they got the message that is how difficult it is to get the right people.
Making this announcement without being able to state hard facts just makes both countries look foolish. But they are used to the world laughing at them.
Progressing from democracy to dictatorship.
www.petroleumworld.com/lagniappe12031301.htm
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