Sources: PDVSA offers expanded extraction areas to joint venture partners such as Chevron, Venezuela amends laws to accelerate energy expansion
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Three sources have revealed that Venezuela's state oil company PDVSA is in negotiations with joint venture partners such as Chevron, Repsol, and Maurel & Prom to offer expanded development blocks in already allocated oil fields of existing projects, a move expected to increase oil and gas production. The negotiations have accelerated following the comprehensive reform of the oil law, which was approved at record speed by the Venezuelan National Assembly at the end of January. This reform grants foreign companies, as minority partners in joint ventures, the right to operate independently, export, and realize sales revenue, and gives the Ministry of Petroleum, PDVSA, and commercial partners six months to renegotiate joint venture terms. Two sources indicated that the legal approval has directly accelerated regional expansion talks with US and European partners, many of whom are still awaiting US licenses to expand their operations in Venezuela. Washington previously announced a $100 billion plan to rebuild Venezuela's energy industry. The Venezuelan Ministry of Petroleum, PDVSA, Chevron, Repsol, and Maurel & Prom have not yet responded to requests for comment.
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