Pricing structures on rates and tariffs associated with Venezuela's gas and petrochemicals market will be released "in the weeks to come," said Eduardo Praselj, vice president of Petroleos de Venezuela SA, said. as reported by news agencies.
Praselj was speaking at a seminar in Brusels to promote investment in the Andean nation's natural gas and petrochemicals sectors, Praselj said interested foreign investors won't face any requirements to take on local partners.
"We are encouraging Venezuelan operators but it's not mandatory" to have a local partner, he noted.
Venezuela is trying to attract between $6 and $10 billion in foreign investment to develop its natural gas sector over the next 10 years. The country has the seventh largest proven natural gas reserves in the world, with some 146 trillion cubic feet.
The foreign investment will help it to double turnover to $6 billion from $3 billion and triple exports to $3 billion from $1 billion each year, Praselj said. Reported Dow Jones.
Praselj said that officials hope to attract mid-sized European energy companies with sales of around EUR100 to EUR500 million that don't already have a manufacturing presence in South America.
The three main projects available to investors are bringing offshore gas to North East Venezuela for liquifying and export, a new gas plant in West Venezuela, and supplying gas to regional zones in Venezuela, Praselj said.
In addition to the domestic market, Venezuela has many export markets within reach, including the massive U.S. energy market, he noted.
Praselj said the new regulatory environment guarantees intellectual property rights, the right to repatriate profits and access other Andean markets, among others.
Praselj said the main incentives open to investors are a 10% tax credit on investments valid for three years, duty free zones, tax reductions on environmental measures and debt instruments to make up part of investments.
© 2000 Mena Report (www.menareport.com)
