Sources say that Venezuela's PDVSA has expanded its oil fields to joint venture partners.

Three sources familiar with the matter said that the state-run PDVSA of Venezuela is currently in discussions with its joint venture partners including Chevron Repsol and Maurel & Prom to expand the oilfields assigned to their respective projects. This could lead to an increase in crude and natural gas production.

Venezuela's National assembly?approved a reform of the main oil law in late January, allowing foreign oil companies autonomy to export and receive cash sales proceeds even though they are minor partners in joint ventures with PDVSA.

The reform was approved in record-breaking time after the capture of President Nicolas Maduro by the United States and Washington's announcement that it would invest $100 billion to rebuild Venezuelan energy industry. It gave Venezuela's Oil Ministry, PDVSA, and its business partners a six-month window to renegotiate terms of their joint projects.

Two sources stated that the law approval had accelerated the talks about the expansion of the areas, particularly with PDVSA’s U.S. and European partners. Many of these are still waiting for their individual U.S. licences to authorize expanded operations in Venezuela.

PDVSA (Venezuela's Oil Ministry), Chevron, Repsol, and Maurel & Prom have not responded to comments immediately.

The majority of the?areas?on offer are near oilfields in which PDVSA partners participate. One source said that the state company and oil ministry offer?them to different companies simultaneously, anticipating to receive and compare the?proposals before finally awarding?them.

In recent weeks, the U.S. Treasury Department issued general licenses to companies that?export oil, import fuel, and provide drilling equipment, oilfield services, etc. to Venezuela. However, energy companies are still waiting for individual licensing.

(source: Reuters)