Venezuela, Argentina ponder oil exploration in the Falkland Islands

Venezuelan state-run oil company Pdvsa and Argentinean oil company YPF are considering conducting exploration activities in the nearby Falkland Islands, said Rafael Ramírez, Venezuelan Petroleum and Mining Minister and President of Pdvsa.

"We talked about the need for conducting oil and gas exploration activities both on shore and offshore the nearby Falkland Islands, yet possible cost and time have to be discussed," said Ramírez within the framework of the signing of agreements recently entered into between Pdvsa and YPF.

Ramírez told daily newspaper Página 12 that the financing of the projects in the Argentinean territory will be provided by Pdvsa-YPF joint venture in Venezuela, AFP reported.

"We have an oil field at the (Orinoco Oil) Belt yielding 130,000 barrels per day. Moreover, we intend to boost production to 160,000 bpd and develop another field so as to total 200,000 barrels. The idea is to bring forward a transitory union of enterprises able to use assets to finance the whole project."

Ramírez also said that duly considerations have been made regarding Repsol's warnings with respect to those companies that may enter into partnerships with YPF after the Argentinean State seized 51% of the shares of the Spanish company.

Additionally, Ramírez stressed that oil prices will stand at USD 100 per barrel amid global economic issues and political tension. He added that oil demand is vital to sustain growth, reported Reuters.

Translated by Jhean Cabrera