Venezuela makes changes in Carabobo tender-source

CARACAS, Sept. 28 (Reuters) - Venezuela has changed some conditions of the auction of its Carabobo oil blocks in the Orinoco heavy crude region, several people involved in the process told Reuters on Monday.

The government is expected to present the terms of the bidding process on Wednesday after the tender was delayed in June as lower oil prices made companies balk at some of the costs of developing the blocks.

"There is an important change that will seriously affect the economics of the projects and significantly reduce the risk," a person familiar with the auction said on condition of anonymity without providing more details.

The sources did not want to talk on the record since the process is ongoing.

Some of the 19 companies interested in the tender have been put off by high taxes and royalties.

The Carabobo Project aims to build three upgraders to turn the Orinoco belt's tar-like crude into oil for exports and produce around 200,000 barrels per day, with the initial investment seen between $10 billion and $20 billion per area.

Last week, Energy Minister Rafael Ramirez said firms that build refineries instead of upgraders could see their taxes reduced to 34 percent from the 50 percent levy typically applied to crude production.

Companies that have shown interest in the tender include Britain's BP (BP.L: Quote, Profile, Research), U.S.-based Chevron (CVX.N: Quote, Profile, Research), China's state-owned CNPC, Spain's Repsol YPF (REP.MC: Quote, Profile, Research), France's Total (TOTF.PA: Quote, Profile, Research), Colombia's Ecopetrol ECO.CN, Italian ENI (ENI.MI: Quote, Profile, Research) and Portugal's Galp Energia (GALP.LS: Quote, Profile, Research). (Reporting by Marianna Parraga; Writing by Kevin Gray; editing by Carol Bishopric)