September 12, 2009

Chavez: Large gas field found in Venezuela

Venezuelan President Hugo Chavez says his country could become a major gas producer thanks to the discovery of a large gas field off his country's coast.

The BBC reported Saturday Chavez confirmed his country made the discovery of an estimated 7 trillion to 8 trillion cubic feet of natural gas with the Spanish energy company Repsol.

What are we going to do with so much gas? the president jokingly said about the recent discovery.

Respol said the gas field was discovered in the Gulf of Venezuela as part of an exploration consortium involving the Italian energy company Eni, the BBC reported.

Profits from the field, which still must be developed, will be split between Eni, Respol and Venezuela's state company PDVSA. The Venezuelan company will receive the largest percentage with 35 percent of profits, while Eni and Respol will each receive 32.5 percent.

The BBC reported tests are being conducted to confirm the volume of the discovered gas field following provisional estimates.