Picturesque Venezuela is located at the northern end of South America, facing the Caribbean Sea and the Atlantic Ocean. It is one of the major oil producers in the world, the fourth largest oil exporter in the world in 2000 and one of the five founding countries of the Organization of Petroleum Exporting Countries. Venezuela's oil industry was controlled by mature western oil companies in the early stage of development, and its management was relatively strict. As early as 19 13, Shell set up a derrick on Lake Maracaibo in Venezuela, and made an important discovery in 1922, which set off an oil exploration frenzy and attracted a large number of oil companies and oil prospectors. From 65438 to 0976, Venezuela implemented the policy of nationalization of oil, and the national oil company completely replaced the western oil company, but its management style remained unchanged, and it was recognized as a high-level oil company among oil companies in the world. 1993, Venezuela reopened its oil industry through legislation and selected foreign oil investors through international bidding. Two rounds of bidding were conducted in 1995 and 1996, which aroused enthusiastic response from the international oil industry. Through these two rounds of bidding, Venezuela has strengthened the protection of its own resources, and the bidding conditions have become more and more demanding. It has been pointed out that Venezuela, which is demanding, is the arena of international oil companies.
1997, Venezuela took out 20 old oil fields under production for the third round of international bidding, and the winning bidder could get the right to operate the oil fields for 20 years and get the return on investment from the increased crude oil in the oil fields. Although this is a tender for marginal oil field exploitation project, it still attracts more than 260 oil companies. Companies that formally bid include major international oil companies, such as ExxonMobil, Amoco, Shell, Chevron and Texaco. China Oil is also among them. After the tender was announced, China Petroleum won the bid for two blocks, namely, Gaolaisi Oilfield on the land in eastern Venezuela and Gambu Oilfield in Inti on Lake Maracaibo in western Venezuela, with a total bid value of US$ 359 million, equivalent to the recoverable reserves of US$ 0.48 per barrel, far below the average bid price.
China Petroleum won the bid twice, which caused strong repercussions and many discussions in the international oil industry. Some people even say that China people can open restaurants, but can they engage in oil?
On July 1997 and 18, China Petroleum International Venezuela Company (hereinafter referred to as Venezuela Company), a subsidiary of China Petroleum and Natural Gas Exploration and Development Company, was established in Caracas, and at the same time, two operation areas were set up in the oil fields, which were taken over in February and May of 1998 respectively. The new oil man from China sorted out the complicated geological conditions of the old oil field as soon as possible and handed in the 20-year development plan of the oil field two months in advance. In view of Venezuela's strict and complicated means of supervision over foreign oil companies, Venezuela has formulated a series of effective working procedures to cope with the strict, cumbersome and time-consuming procedures for project approval, and obtained various approvals on time, so that all projects can be implemented as planned.
After taking over the oil field, China petroleum people used their meticulous geological work and solid research work to combine the advantages of domestic geological research with foreign advanced technology and achieved a series of remarkable results.
After Venezuela took over two oil fields, its output doubled year by year. From 4,905 barrels per day when 1998 took over, it increased to 40,000 barrels per day by the end of 2000, and the production capacity was eight times that of the original. Among all the successful bidders in the third round of bidding, China Petroleum has the lowest production cost and the largest increase in production, which has been recognized and praised by other oil companies and changed their views on China Petroleum Company with facts. The president of Venezuelan oil company sincerely said that among the 20 blocks in the third round of bidding, China people did the best.
Venezuela's project has less investment and less risk, but it is a stepping stone for PetroChina. Through the operation of these projects, China Petroleum Company has basically become familiar with international practices, trained its team and trained talents, and reserved its strength for its future display on the international stage.