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Enron Mail |
Rick --
Trust that Neal is keeping you in the loop on Venezuela developments. Chavez has tried twice to reach Richardson (he keeps on trying Richardson's home phone numbers, despite our telling his office that Richardson can best be reached at his work numbers). Chavez has been forward-leaning in the tone of his voicemail messages, and we understand from Neal that Enron has received some positive signals from the Venezuelan government in recent days. Richardson is back from Europe today and we'll check with him on any Chavez updates, as well as press to make phone contact if it hasn't happened in the past few days. Attached is the public announcement of the important changes in the gas sector that we previewed for you some weeks ago. Our assessment continues to be that this change is more positive for the Jose project than not. Best, Nelson -----Original Message----- From: Stephen Donehoo [mailto:sdonehoo@mclarty.com] Sent: Thursday, September 27, 2001 6:40 PM To: Neal Gerstandt (E-mail) Cc: Bill Richardson; Nelson internet (E-mail) Subject: Venezuela to Create Separate Government Gas Company Neal, FYI. Sec. Richardson is in Europe so I have no word on Chavez. Stephen 09/27 17:25 Venezuela to Create Separate Government Gas Company By Patrick Gordon Caracas, Sept. 27 (Bloomberg) -- Venezuela's Energy and Mines Ministry plans to create a state-owned gas company as the country begins a campaign to boost natural gas production. The new company will replace PDVSA Gas, a subsidiary of the state oil company Petroleos de Venezuela SA now in charge of the gas industry, said Luis Vierma, director policy and planning for the Energy and Mines Ministry. ``Until now gas has always been placed in line behind oil at PDVSA,'' said Vierma. ``We need a company that will focus on gas.'' He added that the as yet unnamed company will start operations before the end of the year. Venezuela has about 147 trillion cubic feet of natural gas reserves, the largest in Latin America and the seventh largest in the world. Venezuela produced 3.42 billion cubic feet of gas in 2000, compared with 3.5 billion a year earlier. The new company is being created as the South American country has increased its emphasis on natural gas production. Venezuela sold rights to six natural gas tracts in June, the first time since it nationalized the oil and gas industry in 1975- 1976 that private companies could participate in the exploration and production of natural gas. Critics said the removing natural gas production from PDVSA would be inefficient and increase costs. ``It doesn't make any sense to separate the two businesses,'' said Luis Giusti, former PDVSA president who is now a senior adviser for the Center for Strategic and International Studies in Washington. ``Gas is usually found with oil. That's why it's called the oil and gas industry,'' said Giusti. Venezuela and private companies may invest up to $50 billion over the next 30 years to develop Venezuela's 100 trillion cubic feet of probable offshore gas reserves, he said. Exploratory drilling for gas would begin Dec. 15 at the Deltana Platform off the eastern coast, said Vierma. Natural gas for November delivery rose 37.1 cents, or 16 percent, to $2.62 per million British thermal units on the New York Mercantile Exchange. ?2001 Bloomberg L.P. All rights reserved.
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