Venezuela and Trinidad and Tobago together in oil businessStaff writer ▼ | September 13, 2013
The deal follows six years of binational talks about how to share the reserves fairly. Venezuela wants to develop its neglected natural gas fields, in part to feed demand for electricity that is straining its hydropower production network.
The PDVSA-Chevron joint venture will explore the largest of the shared fields, the Loran-Manatee bloc, Venezuela's Energy Minister Rafael Ramirez said.
The Loran-Manatee field has proven reserves of just over 10 trillion cubic feet (tcf). Under the agreement 73.75 percent belongs to Venezuela and the rest to Trinidad and Tobago.
Venezuela was allocated 64 percent of the second-largest bloc, Cocuina Manakin, which has 0.74 tcf of reserves, Ramirez said, while Trinidad and Tobago has 84 percent of the third, the 0.31 tcf Dorado-Kapot field.
Chevron currently participate in six onshore and offshore production projects in the country, in partnership with PDVSA.
Under the agreement, PDVSA will build a gas pipeline of about 170 miles (274 kms) from the Loran-Manatee bloc to the Paria Peninsula on the Venezuelan coast. That area is the focus of a high profile but long delayed Venezuelan offshore natural gas project called Mariscal Sucre, where reserves are estimated at 14.7 tcf. ■