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Petroleum industry

EOG Resources Transfers Operatorship of Gulf of Paria East to Inelectra

Strategic Insights

— 1 min read

A significant shift in oil exploration is underway as Houston-based EOG Resources and state oil company Petroleos de Venezuela (PDV) evaluate the transfer of operatorship of the Gulf of Paria East exploration block to Venezuelan company Inelectra. The move, announced on Thursday, marks a major development in the exploration of oil reserves in eastern Venezuela. EOG and PDV had partnered in a 90-10% consortium, with EOG paying the majority of the exploration costs, which have totaled approximately $60 million since the initial bid round in 1996.

Key Takeaways:

  • EOG Resources is transferring operatorship of the Gulf of Paria East exploration block to Venezuelan company Inelectra.
  • The block is located in waters offshore eastern Venezuela and has been under exploration since the 1996 bid round.
  • The consortium, consisting of EOG (90%) and Inelectra (10%), won the rights to explore the block through PDV's 1996 auction.
  • To date, the partners have spent approximately $60 million on exploration, with plans to increase spending by an additional $20 million over the next six months.
  • Inelectra plans to revisit the area within three months and begin drilling, with the goal of finding new private partners to aid in future expenses.
  • The transfer of operatorship marks a significant shift in oil exploration, with the Venezuelan state-controlled company PDV evaluating its decision on Inelectra's request.

Statistics:

  • 90%: EOG's stake in the Gulf of Paria East exploration block consortium.
  • 10%: Inelectra's stake in the Gulf of Paria East exploration block consortium.
  • $60 million: Total exploration costs incurred by the consortium since the initial bid round in 1996.
  • 1996: Year in which PDV held its first and only exploration bid round, from which EOG and Inelectra won the rights to explore the Gulf of Paria East block.
  • 3 months: Timeframe in which Inelectra plans to begin drilling on the Gulf of Paria East block.
  • 6 months: Timeframe in which Inelectra plans to spend an additional $20 million on exploration.

Sources:

  • El Nacional (local daily newspaper)
  • EOG Resources (official statement)
  • Petroleos de Venezuela (PDV) (official statement)
  • Inelectra (official statement)
  • 1996: PDV's exploration bid round

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