Reply #8: Many of the Production Sharing Agreements turned out not to be.... [View All]

[Blue to the bone]

...profitable. That included a number that were sold to companies from Argentina and the UK as well as the US.

For the most part, these deals involved old, non-productive, or marginally productive fields that required a lot of investment and technology that PDVSA did not have, or did not want to expend on such fields. PDVSA's intent was to focus its energies on newer fields and those yet to be discovered.

Some of these deals were profitable, some were not. A number of companies operating locally pulled out, even before the new royalty levels were applied.