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

Three sources familiar with the matter have confirmed that PDVSA, Venezuela's state-run petroleum company, is in talks with its joint-venture partners to offer them expansions of?the oilfields assigned to their projects. This could lead to an increase in crude and natural gas production and exports.

Venezuela's National Assembly approved in late January a reform of the country's oil law that grants foreign oil companies autonomy to operate, export, and cash out sale proceeds - even if they are minor partners in joint ventures.

Two sources claim that the'reform' gave the 'oil ministry' of Venezuela, PDVSA, and its partners six months to renegotiate the terms of their joint projects. This has resulted in a faster pace for talks on the expansions.

The majority of the areas that are being offered are located near oilfields where PDVSA partners participate. One source said that the state company and the oil ministry offer them to different companies simultaneously, hoping to compare and receive proposals before awarding them.

PDVSA didn't?respond immediately to a comment request.

Sources said that U.S. and European companies currently operating in the country are among the companies in discussions with PDVSA. Reporting by Marianna Pararaga, Sheila Dang, and Staff; Editing By Julia Symmes Cobb

(source: Reuters)