Venezuela and Trinidad and Tobago announced Wednesday that the former’s state-held oil company Petróleos de Venezuela, S.A. (PDVSA) will develop an offshore natural gas field in partnership with Chevron. This agreement marks the end of a six-year feud between the Caribbean countries on how to fairly divide the natural gas reserves.
While no start date has yet been set, Venezuela’s Minister of Energy and Petroleum and PDVSA president Rafael Ramirez said at Wednesday’s signing ceremony that the PDVSA-Chevron joint venture will concentrate on the Loran-Manatee field, the largest of three fields spanning Venezuela and Trinidad and Tobago’s maritime borders. The Loran-Manatee field, located in the Gulf of Paria, has proven reserves of approximately 10Tcf.
When contacted for comment, Chevron recognized the unitization of the agreement, but would not disclose transactional details.
Under the agreement, PDVSA will build a gas pipeline of about 170 miles from the Loran-Manatee bloc to the Paria Peninsula on the Venezuelan coast. Furthermore, 73.75% belongs to Venezuela with the remainder apportioned to Trinidad and Tobago. Venezuela was allocated 64% of the second-largest field, Cocuina Manakin, which has 0.74Tcf of reserves. Trinidad and Tobago has 84% of the third, the 0.31 tcf Dorado-Kapot field.
Venezuela’s demand for electricity is currently straining the country’s hydropower production network, and the country is looking to optimize usage of their natural gas resources.
Chevron currently has projects underway in both Venezuela and Trinidad and Tobago to develop more natural gas. The United States-based supermajor has held a presence in Venezuela since the 1920s, and is currently involved, under partnership with PDVSA, in six onshore and offshore projects. Chevron’s subsidiary Chevron Trinidad and Tobago Resources SRL explores for and produces natural gas in the Dolphin and Dolphin Deep offshore natural gas fields in East Coast Marine Area.
Subscribe
