ChevronTexaco and ConocoPhillips partnership in Plataforma Deltana Block 2

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Wednesday, June 04, 2003 By: David Coleman

In a press release issued in Caracas this morning, ChevronTexaco and ConocoPhillips have announced a partnership in the exploration and development of Block 2 in Venezuela's offshore Plataforma Deltana was awarded to ChevronTexaco in mid-February by the Ministry of Energy & Mines (MEM).

ConocoPhillips is to acquire 40% interest while ChevronTexaco will hold 60% and remains the operator, both working in collaboration with Petroleos de Venezuela (PDVSA) which retains the right to acquire up to 35% at the time of a declaration of commerciality. Natural gas from the fields will be processed into liquefied natural gas (LNG) for export to the United States.

George Kirkland, president of ChevronTexaco Overseas Petroleum says “this agreement combines the already considerable experience in Venezuela of two world-class companies ... the project is part of ChevronTexaco’s strategic plans to commercialize its existing natural gas resource base and enable the creation and development of new natural gas growth opportunities worldwide.”

ChevronTexaco and ConocoPhillips are already involved with major projects in the Orinoco Belt where ChevronTexaco operates the Boscan and LL-652 fields in the west of the country while ConocoPhillips operates on behalf of partners in the Gulf of Paria West.

Ali Moshiri, managing director of ChevronTexaco Upstream Latin America says “ConocoPhillips was the logical choice for us as partner in Block 2 ... their existing reserves in the vicinity, extensive LNG experience worldwide and the strong position of both companies in the US natural gas market make us a very powerful team.”