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CARACAS, Venezuela

Until newly, Ch

But faced through the plunge in prices and a decline in domestic production, senior officials have begun soliciting bids from some of the largest Western oil companies in latter weeks

Their willingness to flat consider investing in Venezuela reflects the deficiency of projects open to external companies in other top oil nations, particularly in the Middle East.

What’sitting at jeopardize

But the shift also shows how the global monetary crisis is hampering Ch

With oil prices so low, the long-standing problems plaguing Petr

Embracing the Western companies may have existence the only way to shore up Petr

“If re-engaging with foreign oil companies is necessary to his public survival, then Ch

In recent years, Ch

The bidding process was first conceived last year when oil prices were higher but Petr

Still, the process is moving into high gear only this month, with the authorities in Caracas expected to start reviewing the companies’ bidding plans on new areas of the Orinoco Belt, an area in meridional Venezuela with an estimated 235 billion barrels of recoverable oil.

Complex projects

Altogether, else than $20 billion in investment could subsist required to assemble devilishly complex projects capable of producing a combined 1.2 million barrels of oil a day.

Ch

In the past year, with higher oil prices paving the way, Ch

Rafael Ramirez, the energy minister and president of Petr

Companies mum

After the turmoil of recent years, Western oil companies are averse to speak publicly about their plans. “We don’t elaborate on bidding processes beyond the fact that we evaluate every suitable and our decisions will be based on economics and other factors,” said Scott Walker, a spokesman for Chevron.

But energy executives harangue with restrained optimism. Nineteen companies paid $2 the multitude each last month for data adhering areas open for exploration, twice what such given conditions costs elsewhere.

Oil party officials related they recognize the jeopardy of investing in Venezuela, given the country’session abrupt shifts in the by. But they point of concentration on the long-term potential of its petroleum reserves. Venezuela poses little risk in the search for oil since geologists have known for years where it lies in the Orinoco Belt.

Original text: http://seattletimes.nwsource.com/html/nationworld/2008630410_chavezoil15.html?syndication=rss