PDVSA Begins Drill Work in Bolivia at Vibora Field

CARACAS (Dow Jones Newswires), Jan. 27, 2009

Petroleos de Venezuela SA, or PdVSA, said one of its oil rigs began operations in Bolivia, as part of an energy accord between both nations.

Drilling began in the Vibora field, roughly 170 kilometers north of Santa Cruz, with the aim of increasing production of oil and gas in the Andean country, PdVSA said in a statement.

PdVSA PDV 08, a 2,000-horse-power drill, is one of several Chinese rigs the company purchased in its attempt to rely less on U.S. equipment.

President Hugo Chavez has cemented strong ties with Bolivia's Evo Morales and has vowed to help the Bolivian president develop the country's oil and gas industry.

Copyright (c) 2008 Dow Jones & Company, Inc.