The fields cover a large license area of 700 square kilometers and lie close to Harvest's South Monagas Unit. Under the terms of the agreement, Benton-Vinccler has six months to submit a field development plan and negotiate terms whereby Benton-Vinccler would join PDVSA in producing the remaining reserves. The terms of the new joint venture will be framed under the Venezuelan Organic Hydrocarbon Law.
Harvest President and Chief Executive Officer, Dr. Peter J. Hill, said, "We are pleased to enter into this exclusive agreement to evaluate these fields. We believe we will be able to build economic field development plans to benefit both PDVSA and our shareholders by applying our low cost approach, 10 years of operating experience and technical expertise in producing large oil and gas resources in Eastern Venezuela."
Hill continued, "This is a good arrangement for both parties. We have an opportunity to add significant reserves and value from fields located adjacent to our current production. PDVSA can benefit from increased production growth and much needed investment in the area. We look forward to working together during the evaluation and, subject to a positive assessment, entering into negotiations to establish an attractive joint venture for both parties."
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