Venezuela to venture into shale gas

Caracas - Venezuela will begin shale gas exploration, partnering with Brazil's Petrobras and America's Williams International Oil & Gas, the country's energy minister said Wednesday.

"A first well will be drilled in the Concepcion field" in northwestern Lake Maracaibo, Rafael Ramirez said during a trip to Zulia state, which contains the lake.

Ramirez, who is also president of state oil company PDVSA, said the project will be undertaken by joint venture Petrowayu.

The entity is 60% owned by PDVSA, 36% owned by Petrobras and four percent owned by Williams.

Venezuela currently imports between 5.7 and 8.5 cubic meters of gas per day from its neighbor Colombia.

Sitting atop the world's largest-proven oil reserves, Venezuela ranks eighth in the world in terms of gas reserves.

PDVSA also signed a $2bn contract with American oil service companies Schlumberger, Weatherford and Halliburton.