## Eni Makes Giant Gas Discovery in Offshore Venezuela

##### 18 October 2009

Italian oil major Eni made a world class gas discovery at its Perla field, in the shallow water of the Venezuelan offshore, successfully drilling an explorative well in the Perla field, located in the Cardon IV block, in the Gulf of Venezuela. The field has a reserve potential higher than the 6 trillion cubic feet of gas (1 billion of barrels of oil equivalent) previously estimated.

In order to further define the field, further appraisal wells will be required. The Perla 1X well, 50 km from the coast, has been drilled encountering a hydrocarbon column of 240 meters (775 feet).

During the production test, the well produced high quality gas with a capacity of 600,000 cubic meters per day (approximately 3,700 boed) and 500 barrels of condensate per day. Normalized gas production per well is expected to increase to over 1 million cubic meters per day (6,000 boed).

The results of the well exceeded pre-drill expectations, making Perla the largest gas discovery in Venezuela and, potentially, one of the world’s largest natural-gas discoveries in recent years. These results will be evaluated with the objective of accelerating the definition of a work program to further define the discovery and establishing possible development scenarios.

The Cardón IV Block is currently licensed and operated by a Joint Operating Company, 50% Eni and 50% Repsol, named Cardón IV S.A. The Venezuelan state company Petróleos de Venezuela S.A. (PDVSA) owns a 35% back-in right in the development phase and, if exercised, Eni and Repsol will each hold a 32.5% interest in the project.

South and Central America may need a North-South NG pipeline from Mexico to Argentina.

Why any private corporation is having anything to do with Venezuela at this point is beyond me...it's just a matter of time before that dirtball Chavez seizes and nationalizes those wells & facilities from Eni.

It would be wise for Venezuelan gov. to subsidize conversions of cars to run on nat-gas, and keep increasing the price of gasoline for local population which is currently (reportedly) ridiculously low (cents per litre). It's probably much more profitable to export oil/gasoline than nat-gas, no new infrastructure is needed (LNG terminals, long pipelines). Anyway, nat gas is expected to last several decades after oil.
Not just Venezuela, some other nat-gas rich countries would be better off doing that (US included).

@MG:

"keep increasing the price of gasoline for local population which is currently (reportedly) ridiculously low (cents per litre). "

I have to ask if you've ever been in Venezuela and witnessed the poverty among the locals?

And these are the destitute from whom you recommend the Venezuelan government squeeze the last drop of blood. Like someone once said "Let them eat cake".

Sounds like what the Republicans are up to in the land of the free home of the brave.

We all know what happened to Marie Antoinette.

Mannstein,

You rail against the idea that the poor people of Venezuela should be forced to pay more for energy and describe the idea as 'squeezing the last drop of blood from the destitute".

I agree with you up until you make the statement, "Sounds like what the Republicans are up to in the land of the free..."

What planet have you been living on. It is the Democrats going back for years that have constantly advocated higher taxes on gasoline and the Republicans that have opposed it, in part because of the impact it would have on working families. Presently, the Dems are pushing through a massive energy tax that would add close to two grand to the average families energy bill.

While both parties tax and spend too much for me, it is the Democrat party with it's massive spending, and proposed massive new energy taxes that is doing a very good impression of Marie Antoinette.

(As a side note, I don't think Marie actually ever said "let them eat cake." Probably just a malicious Wikipedia lie)

"malicious Wiki lie" ????? huh?
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anyway, the only reason the republicans don't want energy taxed is because of infuence of the oil industry. Don't try to hide behind the smoke screen of helping working families. Oh, and i forgot to mention that the Democratic scoundrals are equally under the influence of big oil.
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Unfortunately, our nation has failed to tax oil appropriately for decades...since we began importing. By failing to tax it we have gotten ourselves in a terrible mess.

Damn has a good point.

I would add that they also failed to support any alternative ways to travel using a lot less oil.

Politicians, too often have to return the favour to those who contributed to their election campaign. That is how Oil people got the very generous tax credits and never pay income tax on their huge profits.

This could be stopped three different ways.

1) use public money ONLY at the rated of $1.00 to$3.00 per elector for each major party.

2) impose strict limitations (\$10 each) on individual donations for the public.

3) ban all direct and indirect donations from all organisations.

No its not by failing to tax that has caused the problem.

Rather by sitting on our dumb fat asses doing zip after the 1970s oil crisis that got us into this predicament.

Most Gringos have short memories.

"doing zip after the 1970s oil crisis"

Absolutely spot on. It does not help to go over all that, but it is good to see how we got here and try not to make the same mistakes. I am not taking any bets one way or the other.

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