ChevronTexaco sells gas tract interest

June 7, 2003, 4:06PM Bloomberg Business News

ConocoPhillips bought 40 percent of a Venezuelan natural gas tract from ChevronTexaco, according to a prepared statement by ChevronTexaco last week.

ChevronTexaco, the second-largest U.S. oil company, retained 60 percent of Block 2 in Venezuela's offshore Deltana Platform tract, South America's largest natural gas reserve. The tract is between Venezuela and Trinidad and Tobago.

ChevronTexaco spokeswoman Monica Davila in Caracas would not disclose the terms of the purchase.

ChevronTexaco, which won development rights to Block 2 in February, said in April it planned to spend as much as $1 billion to develop the tract. Venezuela's state oil company, Petroleos de Venezuela, retained the right to acquire as much as 35 percent of the project, the statement said.

Venezuela is counting on natural gas from Deltana to reduce its dependence on revenues from oil exports. The Deltana Platform is divided into five blocks and comprises 27,000 square kilometers. Venezuela estimates the area holds up to 40 trillion cubic feet of natural gas.

Natural gas produced at Block 2 will be processed into liquefied natural gas and exported to the United States, the release said.