Venezuela Natural Gas Discovery in Plataforma Deltana Boosts Chevron's LNG Plans for the Region
SAN RAMON, Calif., June 20, 2005 -- Chevron Corporation's Venezuela affiliate today announced a significant natural gas discovery at the offshore Macuira 1X exploration well, advancing the company's plans to evaluate Venezuela's first liquefied natural gas (LNG) project.
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 million standard cubic feet per 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, northeast of Venezuela. It is located relatively close to, and on trend with, the Loran gas field in Block 2, where the company drilled successful exploration wells in 2004. The Macuira 1X exploration well was drilled in 382 feet (116 meters) of water, approximately 15 miles (24 kilometers) southeast of the Block 2 field and approximately 75 miles (121 kilometers) offshore.
"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," said John Watson, president of Chevron International Exploration & Production. "The continued exploration success offshore Venezuela reinforces Chevron's upstream strategy focused on superior exploration opportunities. Equally, the 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, president 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, S.A. (PDVSA) and its partners in the region to make Venezuela's Plataforma Deltana LNG a reality by the end of this decade."
LNG is natural gas that is liquefied under extremely cold temperatures to facilitate transportation and storage, usually from remote locations such as offshore gas fields.
ChevronTexaco Global Technology Services (100 percent) operates Block 3, and PDVSA has an option (up to 35 percent) to back into 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.
Chevron Corporation is one of the world's leading energy companies. With more than 47,000 employees, Chevron subsidiaries conduct business in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and refining, marketing and distributing fuels and other energy products. In Venezuela, Chevron provides direct and indirect employment to more than 2,500 individuals and over 90 percent of the employees are Venezuelan. Chevron is based in San Ramon, Calif. More information on Chevron is available at www.chevron.com.
Editor's Note: Chevron activities in Venezuela include exploration, production, commercialization and marketing projects. Besides Plataforma Deltana Blocks 2 and 3, ChevronTexaco operates the Boscán and LL-652 fields in western Venezuela and holds a 30 percent share in the Hamaca project, one of the four heavy-oil strategic associations in the prolific Orinoco Belt. It also has a national network of 84 Texaco-branded service stations, commercializes lubricants for vehicles and industrial clients, and distributes jet fuel at the Arturo Michelena International Airport in Valencia. Through Chevron Oronite Latin America, the company holds a strategic alliance with Deltaven (a PDVSA subsidiary) supplying 80 percent of requirements for lubricant additives to Deltaven. Chevron headquarters for Latin America are located in Caracas.
CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF L995.
Some of the items discussed in this press release are forward-looking statements about Chevron's plans for Plataforma Deltana Block 2 and its significance to the company's global gas business. The statements are based upon management's current expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Among the factors that could cause actual results to differ materially are changes in demand for, and prices of, crude oil and natural gas, the results of additional drilling and testing, results of evaluation of development alternatives, local political events, civil unrest, weather and general economic conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Updated: June 2005