Shrewdly Crude

Pacific Coast Energy company finalizing Venezuelan agreement

Venezuela is a nation in turmoil, still just weeks removed from a cataclysmic earthquake and also in geopolitical upheaval. That hasn't stopped global commerce.

The latest example of this comes from Pacific Coast Energy Company (PCEC), a California-based energy company with more than 30 years of heavy crude expertise, which said July 30 it "is in the process of finalizing an agreement with Petróleos de Venezuela, S.A. and the Venezuelan government under the administration of Acting President Delcy Rodríguez that would enable the company to develop and operate oil fields."

Founded by Stanford University-trained engineers, PCEC has developed what it calls "innovative drilling & completion technologies and production operation management systems for heavy and extra-heavy crude." The management team, led by Klaus Hasbo, has nearly a century of combined experience across petroleum engineering, financial management, and large-scale operations in North America, Europe, Asia, and the Middle East, per a BusinessWire press release.

“Establishing a presence in Venezuela aligns with PCEC's core capabilities and strategic focus on heavy oil extraction and the rejuvenation of mature, low-decline oil fields,” said Klaus Hasbo, CEO, Pacific Coast Energy Company. “We’re excited about the opportunity to help Venezuela revitalize its oil fields and have raised a total of $800 million in equity, debt, and trade finance to fund initial operations.”

The investment program will reportedly be used for drilling programs, infrastructure upgrades, pipeline rehabilitation, and workforce development.

PCEC "acquires and rejuvenates energy assets in established and emerging producing regions," according to the company's profile. Headquartered in Santa Barbara County, CA, its portfolio spans "mature onshore secondary recovery fields with decades of production history to developments within newly discovered and more complex reservoir horizons in light to extra-heavy oil extraction."