Venezuela's PDVSA offers expanded oil areas to joint venture partners, sources say

By Marianna Parraga and Sheila Dang

HOUSTON/CARACAS, Feb 12 (Reuters) - Venezuela's state-run oil company PDVSA is in talks with many of its joint-venture partners to offer them expansions to the oilfields their projects have assigned, three sources with knowledge of the matter said, a move that could contribute to increased crude and gas output and exports.

Venezuela's National Assembly in late January approved a sweeping reform of the country's main oil law granting foreign oil companies autonomy to operate, export and cash sale proceeds even if they remain as minority partners in joint ventures with PDVSA.

The reform gave Venezuela's oil ministry, PDVSA and its business partners six months to renegotiate their joint projects' terms, which has accelerated talks for the area expansions, two of the sources said.

Most areas on offer are near the oilfields PDVSA's partners currently participate in. The state company and the oil ministry are offering them simultaneously to different companies, expecting to receive and compare proposals received before finally awarding them, one of the sources added.

PDVSA did not immediately reply to a request for comment.

The companies in talks with PDVSA include U.S. and European firms currently operating in the country, the sources said.