Benton Signs Oil Contract with Venezuelan Partner

Benton Oil & Gas Co., an Oxnard energy concern, said that an operating service agreement to reactivate and further develop three oil fields in Venezuela has been signed by representatives from Benton and its joint venture partner, the Venezuelan construction company Vinccler C.A., and Lagoven S.A., an affiliate of Venezuela’s national oil company Petroleos de Venezuela S.A.

The previously announced agreement is part of an overall field-reactivation program begun by Petroleos de Venezuela last year and consisting of 55 oil fields. It marks the first time that foreign companies are being allowed a direct interest in Venezuelan oil development since the country’s oil industry was nationalized in 1975.

Benton, which is responsible for all operations, has a 60% interest in the joint venture. Vinccler has a 40% interest. The three fields to be reactivated contain reserves of about 100 million barrels of oil, Benton said.

Financing for the venture is being arranged by a banking group led by the Banco Latino Group of Caracas, Benton said. Initial production is expected to start in about a year.