Venezuela & Trinidad and Tobago Agree on Oil Field Dispute

This Reuters news story is about a resolution of a dispute over oil and gas resources.

CARACAS, Feb 17 (Reuters) - Venezuela and Trinidad and Tobago have agreed that nearly 75 percent of the natural gas in the Loran field straddling their maritime border belongs to Venezuela, that nation's authorities said on Saturday.

The two countries agreed in 2003 to negotiate the carving up of offshore gas reserves to avoid conflicts over how much belonged to each side, a process known as "unification" of reserves.

Venezuela's energy ministry said a binational committee determined the Loran field, part of an area called the Deltana Platform, has about 10 trillion cubic feet of natural gas, some 7.3 trillion of which belong to the South American country.

In 2003, Venezuela gave Chevron Corp. (CVX.N: Quote, Profile , Research) a license to explore for gas in Deltana Platform Block 2, which includes the Loran field.


The committee also determined that the Dragon gas field in Caribbean waters north of Venezuela was not linked to adjacent gas fields in Trinidadian waters and therefore will not be subject to a unification proceeding.

Venezuela, an OPEC member, said it has agreed to reach an accord with Trinidad over how to develop these reserves.

Venezuela's government is seeking to expand its natural gas operations after years of relying mostly on its oil industry, which provides around 11 percent of U.S. crude imports.

President Hugo Chavez, a vocal critic of the United States, also wants to strengthen overall energy cooperation with Caribbean nations.

Earlier on Saturday, Venezuelan state oil company PDVSA said it and the government of Dominica plan to build a 10,000 barrel per day refinery on the small Caribbean island, expanding PDVSA's list of proposed projects.


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