Venezuela's state-run Petróleos de Venezuela (PDVSA) and Argentine energy company Yacimientos Petrolíferos Fiscales (YPF) are planning to conduct exploration activities around the nearby Falkland Islands.
Rafael Ramirez Carreno, Venezuelan Petroleum and Mining Minister and President of Pdvsa, told Argentine newspaper Pagina 12 that both companies recongnise the need for conducting oil and gas exploration activities both on shore and offshore in the Falkland Island area.
"We have a field in the (Venezuelan) Orinoco (Heavy-Oil) Belt, which produces 130,000 barrels a day," Carreno said. "We will increase that production to 160,000 barrels and develop another field, which would produce another 200,000 barrels."
Spanish firm Repsol has claimed its exploration rights in the Falklands have been illegally expropriated by YPF.
Carreno said Pdvsa was proceeding with caution in wake of Repsol warning, where it said it plans to take legal action against any company doing business with the YPF.