Venezuela gets its first-ever contract for gas export by pipeline

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Petrуleos de Venezuela S.A. (PDVSA) has inked a gas exporting contract with Colombia-based Petromil Gas. The supplies are to start the first of December, S&P Global Platts informs citing a statement made by the head of the Venezuelan state-owned company's gas unit Anton Castillo on Wednesday. It is also added that these are going to be the first-ever Venezuela's gas exports by pipeline.

According to the deal, signed by Castillo and general manager of Petromil Gas Carlos Henao, Colombia will get 1.4 million cubic meters daily from the Perla offshore natural gas field in the Gulf of Venezuela's Cardon IV block. It is now operated by Eni (Italy) and Repsol (Spain). Castillo mentioned that the Cardon IV block is now managing daily output of 14.4 million cubic meters but it is expected that the production will rise by 2018 up to 27 million cubic meters of natural gas.

The details of the deal are not unveiled. The two countries do not disclose either the dollar value of the contract nor any information on the construction of the necessary infrastructure for gas transport.