Petrobras, PDVSA Continue to Hammer Out Mariscal Sucre Development Plans

Brazil's federal energy company Petrobras (NYSE: PBR) and Venezuela's state oil company PDVSA have yet to reach an agreement over development plans for the Mariscal Sucre project in Venezuela.

"We have yet to find an agreement concerning investments in the project, production targets and the destination for natural gas," Nestor Cervero, Petrobras international operations director said at a press conference on his company's international operations.

Petrobras and PDVSA signed an agreement in 2005 jointly to explore the offshore natural gas project.

"The original plan had Mariscal Sucre starting production in 2010 but with current state of planning, it will surely be delayed," Cervero said, adding Petrobras estimates US$3bn in investment for the project.

Petrobras favors plans to sell the gas as liquefied natural gas for export to Brazil or other countries, and PDVSA would rather sell the natural gas for domestic consumption, Cervero said.

Mariscal Sucre could produce 18Mm3/d of natural gas when it reaches full capacity, the executive said.

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