Venezuela Signs Natural Gas Deals Feb 9, 2003 - [Full Text] CARACAS, Venezuela - Venezuela has signed contracts with two foreign oil corporations to exploit the country's largest natural gas reserves, the state news agency Venpres said Sunday.
ChevronTexaco from the United States and Norway's Statoil were awarded the rights to develop two blocks in the Deltana Platform, off the northeastern Venezuelan coast near Trinidad and Tobago.
Energy and Mines Minister Rafael Ramirez said the deal will open the door for Venezuela to enter natural gas markets in the United States, Europe, Argentina and Brazil.
Venezuela, which has the largest oil reserves in the Western Hemisphere, is trying to reduce its dependence on oil by developing natural gas. The country depends on oil for almost half of government income and 70 percent of export revenue.
The government estimates Deltana Platform has gas reserves of 40 trillion cubic feet. The Deltana Platform gas project could bring in $4 billion in foreign investment in six years, the government said.
ChevronTexaco offered the government a bonus of $19 million for the rights to explore block 2 on the platform, while Statoil offered $32 million for block 4. Three other blocks have not yet been taken. Venezuela still must approve the companies' business plans before exploration can begin. [End]
________________________________________
And, if I'm not mistaken, because of Chavez's revolutionary laws, Venezuela (Chavez) will retain control with 51% ownership.