Dow Jones reported that about 5 consortiums of oil companies are expected to place bids in Venezuela's long delayed heavy oil drilling tender scheduled for January 2010.

As per report, British Petroleum PLC and Royal Dutch Shell PLC may each go it alone with individual bids, which cited an unnamed source familiar with the process. In all, some 17 oil companies are seen as interested in the Carabobo project, which will auction off blocks in Venezuela's eastern Orinoco belt.

The government has said the area open for bidding could produce a total of 1.2 million barrels of crude a day and will require investment of USD 30 billion. Some of the firms that are seen involved in the consortiums include China National Petroleum Co, Chevron Corporation, Total SA and Spain's Repsol YPF SA.

The bids would be delivered between January 12th 2010 and January 18th 2010. Winning bids would partner with Venezuela's state oil company, Petroleos de Venezuela, which would retain a 60% majority stake.

The drilling tender, first announced last year, was supposed to have already taken place. But lower global oil prices, a worldwide economic slowdown and tighter credit markets have reduced some of the excitement over the investment opportunity. But oil companies, taking a long term approach, remain interested in the project as there is virtually no geological risk in Venezuela's oil rich Orinoco region.

Mr Ali Moshiri Chevron's president of exploration and production for Latin America and Africa said earlier this week that part of this process involved the government sending oil companies questions related to the terms. The companies then responded and offered suggestions. Moshiri said this process has worked well.

(Sourced from www.dowjones.com)