Venezuela President Hugo Chavez Signs Agreements For Natural Gas Joint Venture

This is from Petroleum World:

Puerto La Cruz, Venezuela
Petroleumworld.com, Sept 22, 2008

Venezuela signed various agreements Friday on the Delta Caribbean offshore natural gas blocks and Mariscal Sucre LGN Gas (CIGMA) project, located in Guiria, Sucre State with foreign oil companies from the U.S., Asia and the Middle East that will guaranty the gas resources needed to develop the CIGMA venture.

President Hugo Chavez and officials from PDVSA, signed various memorandum of understanding agreements for joint-ventures companies that will produce gas in two trains in the CIGMA LNG Project and offshore exploration agreements that will produce gas to be pipe for LNG trains in the CIGMA LNG project.

The joint ventures involves a first LNG train producing 4,7 millions of tons from the CIGMA project with Deltana platform gas, with an expected investment of USD $6.4 millions. In this venture, PDVSA with a 60% stake will work with Galp Energy with 15%, Chevron with 10%; Qatar Petroleum 10%, and Japanese companies Mitsubishi Corp and Mitsui & Co.with 5%. The train is expected operational in 2013.

The second train will also produce 4,7 millions of tons and PDVSA with 60% is to work with Portugal's Galp with 15% stake, Mitsubishi and Mitsui 5%, as well as Itochu 10% and Argentina's Enarsa 10%. An investment of USD$ 5.2 millions is expected and the train will also be operational in 2013.

The memorandum of understanding for the exploration for gas in the two areas awarded, La Blanquilla and La Tortuga with and investment expected of USD$ 5.7 millions, was sign to form a joint venture with PDVSA that will hold a 60% stake, Russia's Gazprom will own 15%, Italy's Eni will participate with 10%; Malaysia's Petronas, will hold 10%; and Portugal's EDP, will control 5%.

Blanquilla and Tortuga areas are located in the Caribbean sea around 60 nautical miles North and West respectively of the island of Margarita, just off the Venezuelan coast. The exploration of these blocks is expected to cost USD$700 million.

The gas to be produce in this blocks is to supply natural gas to a CIGMA liquefaction plant and petrochemical complex and would require an investment of roughly USD$19 billion.

Venezuela said it has proven natural gas reserves of 180 trillion cubic feet, and potential reserves an additional 166 trillion cubic feet, half of that located in off-shore fields.

The CIGMA gas initially would seek to supply the needs of the local economy, and the rest will be exported to markets in Japan, South America, the Caribbean, Europe and Asia Venezuelan President Hugo Chavez said during the ceremony.

Story by Elio Ohep, editor of Petroleumworld
Petroleumworld 19 09 08

Hillary's Flip Flop - Senator Clinton Backs Off On Promise Of New Leadership

At Monday's CNN / YouTube Debate, Senator Hillary Clinton stopped short of saying she would talk to Third World leaders like Hugo Chavez, explaining in a complex way that she would send diplomatic envoys to do this. By contrast, Senator Obama expained that he would send a message that he was willing to have dialog with leaders we don't currently have a great relationship with.

After the debate, some have tried to paint Senator Obama as less experienced than Senator Clinton because of the debate. While that's inaccurate, another story has emerged that paints Senator Clinton in the position of flip-flopping. In the article below, she says President Bush should talk to leaders like Hugo Chavez! Morover, she said this on April 22nd of this year.

Read!

Clinton Blasts President Bush's Foreign Policy
http://wcbstv.com/us/local_story_112220939.html

(CBS/AP) DECORAH, Iowa Hillary Rodham Clinton on Sunday criticized President Bush's foreign policy, and said if she were president she would do things differently, including beginning diplomatic talks with supposed enemies and sending envoys throughout the world.

"I would begin diplomatic discussions with those countries with whom we have differences, to try to figure out what is the depth of those differences," said Clinton, who spoke to about 1,000 people at Luther College in Decorah in northeastern Iowa.

"I think it is a terrible mistake for our president to say he will not talk with bad people. You don't make peace with your friends -- you have to do the hard work of dealing with people you don't agree with," said Clinton, who is seeking the Democratic presidential nomination.

Opening talks with other countries doesn't mean the U.S. won't defend its interests whenever necessary, she said, "but what it means is that we should discuss other routes before we decide we're going to pursue military options.

"We cannot provide the leadership we need unless we are willing to try engage the other countries," she said,

She dished out plenty of criticism about the war in Iraq, and said when it comes to Iran, the U.S. needs to engage those with the real power -- the clerics.

Of Iranian President Mahmoud Ahmadinejad she said: "He's like their front man, he's like their puppet. He goes out and gets people agitated and says things that everybody responds to, but he's not making the decisions. The decisions are being made within the alternative government of these clerics.

"We have no idea of how these people think, we have no contact with them," Clinton said, arguing that she's advocated for years to have a process of diplomacy with Iran.

"If we ever have to use force against any country, it should be seen as an action of last resort, not first resort," she said.

CNN / YouTube Debate Question - The U.S and Hugo Chavez

This CNN YouTube Presidential Debate question stems from comments made by Venezuelan President Hugo Chavez last year. The video of President Chavez was a rare find and appears in this question clip.