Operators vie for 38 Tcf in gas reserves.

Start with one of the three largest delta systems on the planet, mix in proven production potential, add 38 Tcf in estimated (4 Tcf in proven) gas reserves and the result is a recipe that will make directors salivate in producer boardrooms around the world.
That's the fresh-from-the oven gourmet dish some of the largest operators in the world smelled when Petroleos de Venezuela SA (PdVSA) said it would open the offshore Deltana Platform, 10,425 sq miles (27,000 sq km) of properties offshore the Orinoco River Delta (Amacuro Delta) along Venezuela's border with Trinidad, to exploration and development. The properties lie some 155 miles (250 km) from the Amacuro Delta.
PdVSA had set aside US $375 million for an initial one-third share of the early investment, but the government later raised its share to 60%, which may require the Venezuelan national oil company to come up with more cash. PdVSA envisions 10 to 12 exploratory and delineation wells for the property during the next 2 years.
The market for that gas production hasn't yet been built, but Royal Dutch/Shell and Nippon Mitsubishi Oil Corp. were chosen to be PdVSA's partners in the Gulf of Paria project. That project will be the largest liquefied natural gas (LNG) plant in the world at Giuria, Sucre, on Venezuela's northeast coast, with a capacity of 4.7 million tons of LNG a year. First gas should start 2007. Cost estimates range from $2 billion for the LNG plant to $7 billion for field development, the plant and infrastructure to move the gas and liquids.
Nelson Nova, president of PdVSA Gas, said he expects the area to produce 1 Bcf/d of gas within 5 years and to maintain that production rate for 30 years or more.
The northwestern corner of the Deltana Platform lies some 31 miles (50 km) east-southeast of the heel of the island of Trinidad, just south of Trinidad and Tobago's most prolific fields.
From the point of view of continuity of operations, BG has an edge. Its existing license southeast of Trinidad lies along the Cocuina, Piacoa, Loran, Lau Lau and Bora tracts on the Deltana Platform. Its Dolphin Deep field, some 15 miles (24 km) to the north, produces nearly 15% of Trinidad and Tobago's gas. That field produces 230 MMcf/d of gas from reserves of 1.6 Tcf. ChevronTexaco is a 50% partner.
BP has the remaining adjacent property on the Trinidad side of Venezuela's Dorado block, the western-most block on the Deltana Platform.
Its Cassia and Kapok fields cross over the borderline into neutral territory, and it operates Immortelle, Flamboyant, Cashima, Mahogany, NEQB, EQB, Lantana and Corallita fields in the same license area. BP accounts for 70% (1.6 Bcf/d) of Trinidad and Tobago's production, and most of it comes from this area.
In mid-2001, BP's Cashima No. 1 well on the Trinidad and Tobago side found 520 ft (159 m) of gas-bearing sand in four formations and total reserves of 1 Tcf of gas. That well went to a 13,160-ft (4,014-m) TD in 263-ft (80-m) waters.
The economics look good, too. BP said the cost of the gas it produces to feed the Atlantic LNG Co. of Trinidad is $0.50/Mcf.
Among the 15 oil and gas companies that have shown interest, TotalFinaElf wants in. ExxonMobil wanted in on the Gulf of Paria LNG plant, but when it was excluded, many believed it would have an inside track to a Deltana license as a peace offering from PdVSA. Other interested companies include ChevronTexaco, Shell, Repsol YPF and Gaz de France.
Venezuelan President Hugo Chavez said companies working the Deltana Platform would need Venezuelan companies as partners, and Statoil has started talking with Venezuelan engineering companies to try to determine the best way of developing the Deltana tracts.
Now, operators no longer have to project Trinidad and Tobago wells to judge the potential on the Venezuelan side.
The Pride Venezuela semisubmersible drilled the first well in the Deltana Platform series and has been contracted for the full drilling program. PdVSA President Ali Rodriguez said, "The well produced at a rate of 62 MMcf/d of natural gas and 1,600 b/d of 54° (API) condensate." That well confirms the potential of the Venezuelan properties, he added.
PdVSA has an ambitious plan for the platform, and with a 60% ownership position, it should have a strong voice in maintaining that plan.
A presentation by PdVSA's Richard Aymard shows a fixed platform on the easternmost Cocuina block with a gas pipeline running 38 miles (60 km) west to the 42,000-hp compressor plant on the westernmost Dorado block for transfer 169 miles (270 km) to shore at Pedernales, Venezuela.
Similar fixed platforms would harvest gas from Loran North, Lau Lau North, Loran South/Lau Lau South, Bora North, Bora South and Dorado.
The Dorado block, with its gas separation and preparation facilities, also would act as host for liquids separated from the gas. The development plan calls for a storage unit that would offload liquids to tankers for distribution.

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