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 PDVSA is in talks with many of its joint-venture partners, including Chevron, Repsol and Maurel & Prom, to offer them expansions to the oilfields already assigned to their projects, three sources with knowledge of the matter said, a move that could contribute to increased crude and gas output.

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, which was approved in record time following the U.S. capture of President Nicolas Maduro and Washington's announcement of a $100 billion plan to rebuild Venezuela's energy industry, gave Venezuela's oil ministry, PDVSA and its business partners six months to renegotiate their joint projects' terms.

The law approval has accelerated talks for the area expansions, two of the sources said, especially with PDVSA's U.S. and European partners, many of which are waiting for individual U.S. licenses authorizing expanded operations in Venezuela.

Venezuela's oil ministry, PDVSA, Chevron CVX.N, Repsol REP.MC and Maurel & Prom MAUP.PA did not immediately reply to requests for comment.

Most areas on offer are near the oilfields PDVSA's partners currently participate in, including Venezuela's vast Orinoco Belt, the country's main oil output region. 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.

The Orinoco Belt is where the administration of late President Hugo Chavez migrated some extra heavy oil projects to PDVSA-controlled joint ventures, but others were expropriated, triggering many lawsuits. Both Chavez's and Maduro's governments later unsuccessfully tried to bring in large capital to those blocks.

At the Orinoco, output expansions are expected to be faster than in traditional regions that need major overhauls.

The U.S. Treasury Department has in recent weeks issued general licenses for companies to export oil, import fuel and provide drilling equipment and oilfield services to Venezuela, but energy companies remain waiting for individual licenses.