- The French oil company would be investing the capital to acquire a 40% stake in an oilfield joint venture named Petroregional del Lago.
- In 2018, the oilfield produced more than 15,500 barrels of oil on a daily basis.
Maurel & Prom, a renowned French oil firm specializing in hydrocarbon production, has reportedly announced that it would be investing over $400 million to procure 40% stake in a Venezuelan oilfield joint venture (JV), Petroregional del Lago.
Reports cite, the company had previously announced in December 2018 that it has agreed to pay €70 million ($80.5 million) to procure the stake from British-Dutch oil & gas company, Royal Dutch Shell plc. (Shell) and that it would be investing €350 million ($402.5) in an effort to boost output.
According to a report by BNAmericas, the Petroregional del Lago JV, is led by Venezuelan state-owned oil & natural gas company, Petróleos de Venezuela, S.A. (PDVSA) which has invested 60% capital in the venture. The JV now intends to boost the production rate of crude oil to over 70,000 barrels per day at Lake Maracaibo.
The President of PDVSA, Manuel Quevedo, in the presence of Maurel & Prom President Michel Hochard, stated that the French company, with its $400 million in investment would be working to boost Lake Maracaibo oil production. Quevedo further stated that the company has signed the agreements to ensure that the necessary investments are in place at the beginning of 2019 to increase the production to approximately 70,000 barrels per day.
The oilfield only produced about 15,500 barrels of oil per day in 2018 as the site was mired with frequent equipment thefts & persistent power cuts as the nation is dealing with recession, severe food and drug shortages, and crippling hyperinflation.
According to reports, the investment from Maurel & Prom would be allowing the nation to upgrade its oil production infrastructure and alleviate the economic crisis with increased oil production.