Hanover returns stake in Venezuelan gas venture

houston.bizjournals.com 10:53 EST Monday 

Hanover Compressor Co. on Monday said it has exercised its right to return its 30 percent stake in a Venezuelan natural gas compression facility venture to a unit of Schlumberger Ltd.

Hanover, a Houston-based natural gas compression services provider, said the right would have expired Feb. 1. Completion of the transfer of its interest in the PIGAP II venture back to Schlumberger awaits approval by Petroleo y Gas SA, a unit of Petroleos de Venezuela SA , Venezuela's state-owned oil company.

Hanover bought its stake in the venture when it purchased Production Operators Corp. from Schlumberger in August 2001.

A unit of Williams Cos. owns the remaining 70 percent stake in the venture, which operates a natural gas compression plant in Venezuela that processes 1.2 billion standard cubic feet per day of natural gas. The natural gas processed by PIGAP II is re-injected into oil reservoirs for enhanced oil recovery.

Hanover said it is in talks with Schlumberger to explore the possibility of retaining the 30 percent ownership in the venture.