ChevronTexaco Gets Boost in LNG Plans

ChevronTexaco has announced that it was granted a much-awaited license by the Venezuelan government to develop Block 3 of the $3.8 billion Deltana Platform offshore gas development.

According to Ali Moshiri, president of ChevronTexaco Latin America, "we are looking for accumulation ... to complement our Block 2, and our goal is to provide LNG to Venezuela, with our target being the US gas market,"

ChevronTexaco has reportedly asked to develop Block 3 in conjunction with its other Deltana interest, Block 2 -- or Loran -- which runs along the border with Trinidad, where ChevronTexaco owns a 50% interest in Block 6d.

Energy and Mines Minister Rafael Ramirez publicly announced the license award of Block 3 -- called Lau-Lau -- on Thursday, and the formal signing is expected to be in the next week. ChevronTexaco will invest between $6 million and $10 million in the next three years, to carry out regular 3-D seismic exploration works.

ChevronTexaco also holds a license to develop Block 2 --or Loran-- where they expect to find successful drilling results by the fourth quarter of 2004.

If sufficient commercial gas is found in the two Deltana Blocks, ChevronTexaco plans to build an LNG plant in Venezuela, to ship the gas to the Port Pelican receiving terminal that it aims to build 36 miles off the Louisiana coast in the Gulf of Mexico.