U.S. majors Chevron and Conoco eye LNG project in Venezuela

ChevronTexaco and ConocoPhillips are assembling plans to invest $2.1 billion by 2009 in a liquefied natural gas project to tap 4-6 trillion cubic feet of probable reserves offshore Venezuela.

The supermajors expect to start drilling the Loran Block of the Delta Platform in 2004. Facilities include a 190 mile pipeline to an LNG processing plant.

ConocoPhillips joined the project in June with a 40 percent stake, with ChevronTexaco retaining 60 percent. But once commercial production starts, Venezuela’s state-owned PDVSA has an option to acquire 35 percent.

The project would operate adjacent to a long-planned $2.5 billion LNG venture by Shell, Japan’s Mitsubishi and PDVSA, which intends to use BP’s LNG plant in Trinidad to process some of the gas.

Venezuela is hoping to attract $4 billion in LNG spending over the next six years, aiming to build exports to the United States.