Venezuela prods BP, Chevron to revive gas project near Trinidad, Guyana
11/12/2023 18:52
(Updates Dec 8 story on Dec 11 to add Melbana Energy comment in
paragraph 14)
By Marianna Parraga, Deisy Buitrago and Curtis Williams
HOUSTON/CARACAS, Dec 8 (Reuters) - Venezuela has begun
contacting energy firms involved in an long-idled offshore
natural gas project to push them to begin new exploration and
operations near its maritime border with Guyana, five people
close to the talks said.
The request to act on blocks that have not been touched in
more than a decade comes amid an escalating territorial dispute
with Guyana that has rattled the country and led to an emergency
meeting of the United Nations Security Council.
Venezuelan President Nicolas Maduro wants state oil company
PDVSA, and oil majors' BP BP.L , Chevron CVX.N and Shell
SHEL.L to revive an offshore project shared with Trinidad and
Tobago with some 8 trillion cubic feet (tcf) of gas reserves.
Called Plataforma Deltana, the discoveries were never
developed amid insufficient capital, an unfinished reservoir
sharing effort with Trinidad, and a lack of clear rules for
investment.
In 2019, both countries authorized Shell to develop
Trinidad's portion of the largest reservoir, called Manatee,
with a final investment decision expected next year and gas
output to start in 2028.
Recently, Maduro has backtracked on that decision, telling
Trinidad's government in public comments in September that the
fields should be jointly developed. His government and PDVSA
started tapping companies to weigh their interest.
Chevron was the only company that completed exploration in
Plataforma Deltana, certifying 7.3 tcf of recoverable gas and
declaring two of Venezuela's five blocks commercial in 2010. It
never took steps to begin production.
Russia's Rosneft ROSN.MM in recent years explored another
block but did not complete work in the area, while TotalEnergies
TTEF.PA and Equinor EQNR.OL returned one block to Venezuela
after a non-commercial discovery. One of the five blocks was
never awarded.
"They are talking about working at blocks 2 and 4, which are
the most advanced ones," one of the sources said.
On Trinidad's side, those two blocks extend to Shell's
Manatee project and to BP's Manakin shallow water block, both of
which are moving to development and production design.
BP and Trinidad's government expect to begin negotiations
with Venezuela to jointly produce gas at Manakin upon completion
of discussions for Manatee, which have already started,
according to another person familiar with the matter.
Chevron has been in talks with Venezuela about its license,
two of the people said.
Venezuela also made initial contact with Australia's Melbana
Energy MAY.AX , which operates in Cuba. The discussions could
lead to a seismic contract for the less explored blocks, one of
the people said.
Melbana said in a Dec. 10 statement that it is not in
talks with Venezuela's government, and remains focused on its
own projects, with "a busy work program underway."
Shell declined to comment. Venezuela's oil ministry,
Trinidad's energy ministry, PDVSA and Chevron did not reply to
requests for comment.
BP told Reuters it views the Manakin field as an important
part of its future area development plan, even though it had
been unable to progress work there.
"Since the temporary lifting of sanctions by the U.S.
government, BP has been in early talks with the Trinidad and
Tobago government assessing the opportunity to recommence
development planning," the spokesperson said.
TRIPLE INTEREST
Plataforma Deltana is the closest energy project that
Venezuela has to the waters in dispute with Guyana. Both nations
have drawn maritime border lines that cross offshore oil and gas
areas in the other's claimed territory.
The north portion of the Stabroek block, a massive area in
development by Exxon Mobil XOM.N , CNOOC 0883.HK and Hess
HES.N under license from Guyana, extends into Venezuelan
waters, according to Maduro's government. One of Plataforma
Deltana's blocks extends into Guyana's claimed waters.
Venezuela's oil ministry and PDVSA have worked since 2016 to
outsource 2D seismic data collection and map areas including the
Esequibo and the Isla de Aves territory in the Caribbean, which
are in dispute with Guyana and Dominica, respectively, said
Antero Alvarado, managing partner of consultancy Gas Energy
Latin America.
"Venezuela has not completed seismic work in a very long
time. The urgency of doing it now comes amid the dispute with
Guyana and its renewed interest to export gas to markets like
Trinidad," he said.
The territorial dispute with Guyana is being discussed at
the International Court of Justice (ICJ), which this month
ordered Venezuela to refrain from taking any action that would
alter the situation with its neighbor. That came after Maduro's
government held a vote on a referendum asking Venezuelans
whether they accepted the ICJ's jurisdiction on the issue. They
did not.
Maduro on Dec. 5 said he would authorize oil and mining
exploration in the disputed areas with Guyana, but did not
elaborate on locations or projects. PDVSA and state industrial
conglomerate CVG were asked to create specific divisions for
that purpose.
Guyana's President Irfaan Ali called Maduro's actions a
blatant disregard of ICJ orders and an imminent threat to
Guyana's territorial integrity.
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What is the border dispute between Venezuela and Guyana? https://www.reuters.com/world/americas/what-is-border-dispute-between-venezuela-guyana-2023-12-06/
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(Reporting by Marianna Parraga and Curtis Williams in Houston,
and Deisy Buitrago in Caracas; Editing by Gary McWilliams,
Daniel Wallis and Marguerita Choy)
((marianna.parraga@thomsonreuters.com; +1 713 371 7559; Reuters
Messaging: @mariannaparraga))