Chevron Says Gas Off Venezuela Would Feed Deltana LNG Venture.

Chevron on June 21 announced a significant natural gas discovery at the offshore Macuira 1X exploration well on Deltana's platform, advancing the company's plans to evaluate Venezuela's first liquefied natural gas (LNG) project, said the press release. Chevron said the Macuira 1X well encountered six gas intervals with total gross thickness of 456 feet (140 meters). The well tested at a rate of 51 MCF/day of natural gas from two of the six intervals. Both tests were equipment-restricted.

Macuira 1X is Chevron's first well in Block 3, one of five offshore blocks in Plataforma Deltana, north-east of Venezuela. It is relatively close to, and on trend with, the Loran gas field in Block 2, where the firm drilled successful exploration wells in 2004. The Macuira 1X exploration well was drilled in 382 feet (116 metres) of water, about 24 km south-east of the Block 2 field and about 121 km offshore.

John Watson, president of Chevron Int'l E&P, said: "The success of the Macuira 1X well is exciting in that it confirms the extension of the prolific Columbus Gas Basin farther into Venezuelan waters and also provides additional follow-up potential in the block. Continued exploration success off Venezuela reinforces Chevron's upstream strategy focused on superior exploration opportunities. Ongoing success of these exploration activities will play an important role in helping the company grow an integrated gas business in the region".

Ali Moshiri, CEO of Chevron Latin America Upstream, added: "Considering the Macuira 1X discovery is located adjacent to the Loran gas field in Block 2, Plataforma Deltana appears to now have the resources needed for a detailed evaluation of Venezuela's first LNG train. With final endorsement of the evaluation program, this will provide the blueprint for Chevron to proceed aggressively with Petroleos de Venezuela...to make...Plataforma Deltana LNG a reality by the end of this decade".

ChevronTexaco Global Technology Services (100%) operates Block 3, and PDVSA has an option of getting up to 35% equity in the block upon declaration of commerciality. Chevron was awarded the license for Block 3 on Aug. 6, 2004. In early 2005, Chevron announced that one well at the nearby Manatee area of Block 6d had also been successful. This well appears to extend the six shallow gas sands discovered in the Loran field into Trinidad and Tobago waters.