VENEZUELA PICKS THREE FIRMS FOR LNG PROJECT

Venezuela has chosen Exxon Corp., Mitsubishi Heavy Industries Ltd., and Royal Dutch/Shell Group to participate in its $3 billion liquefied natural gas export project. It's the first time international oil companies have been involved in an oil or gas project in Venezuela since the country nationalized its oil industry in 1976. Units of Exxon and the Shell group were nationalized. The three companies will be partners with Lagoven SA, a unit of state owned Petroleos de Venezuela SA.

July 2, 1990

2 min read

Venezuela has chosen Exxon Corp., Mitsubishi Heavy Industries Ltd., and Royal Dutch/Shell Group to participate in its $3 billion liquefied natural gas export project.

It's the first time international oil companies have been involved in an oil or gas project in Venezuela since the country nationalized its oil industry in 1976. Units of Exxon and the Shell group were nationalized.

The three companies will be partners with Lagoven SA, a unit of state owned Petroleos de Venezuela SA.

Tentatively, the interests break out as Lagoven 32%, Shell 31%, Exxon 29%, and Mitsubishi 8%.

PROJECT DETAILS

The Cristobal Colon LNG export project calls for development of gas discoveries in the Gulf of Paria dating to 1978, installation of a 45 km subsea pipeline, and construction of a processing/liquefaction/tanker loading complex at Mapire Bay (OGJ, June 25, p. 23).

It is not clear whether LNG carriers will be purchased or chartered for the project.

Construction is to begin in 1992, with exports of 4.4 million metric tons/year of LNG, valued at about $500 million/year, to begin in 1996. Most LNG exports are expected to go to the U.S.

Because of the nationalization law, Venezuela's congress must approve the project.