Enagas: Govt Eyes 30-40% of NatGas E&P Ventures

Venezuela's government is approaching private companies to negotiate a 30-40% stake in their natural gas E&P projects, gas regulator Enagas president Jorge Luis Sanchez told BNamericas.

To this end, PDVSA Gas, a unit of state oil company PDVSA, will negotiate "with any private company at the production level that sets up in the country," he said.

For example, PDVSA Gas has approached Ypergas, the largest private producer of natural gas in Venezuela, about its E&P projects. Spain's Repsol YPF (NYSE: REP) and France's Total (NYSE: TOT) control the company.

"We were talking with PDVSA Gas recently about that situation and they are preparing for the deals," he said. "Let's remember the idea is to get associated in what PDVSA calls 'deposit management' to increase and improve production capacity."

The government is eager to boost natural gas production to make the most of its reserves. Venezuela is producing some 6.8 billion cubic feet a day (Bf3) of gas, roughly 1.15Bf3/d less than it needs.

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