31-01-02 Shell Group, ExxonMobil, Mitsubishi and PdVSA are waiting for the Venezuelan government economic specifications in the major gas exploration and production project in the so called Venezuela's Paria Sur LNG project.
Originally a $ 2 bn venture in the Paria peninsula next to Trinidad and proposed by group of oil companies lead by Shell Group, along with ExxonMobil, Mitsubishi and PdVSA is scheduled to begin operating in 2005 with an initial production capacity of 4 mm tpy. It is now waiting for the Venezuela's Ministry of Energy-MEM economic and financial parameters.
Before the new hydrocarbons law came in to effect January 1, 2002, Venezuela's National oil company PdVSA had 33 % stake in the project, Shell, was to control 33 %, ExxonMobil 29 % and Mitsubishi 8 %, but under the sprit of the new law, the MEM wants PdVSA to hold 60 % stake in the project.

Shell, ExxonMobil, and Mitsubishi are still interested but they are waiting for the new MEM conceptual parameters, according to sources. The parameters will included the new ownership percentages, but it also might included surprises for the original proposals, completely new rules, like special financing conditions, new oil companies to entry in the project, sources told.
"It might come out as a new ball game, but it seems that so far, that a lot of oil companies are interested" an official told. According to sources, BP Gas, Gas de France, Statoil, an oil company from Qatar, and others have made proposals to the MEM. The project calls for a capacity of 4 mm tpy and its financial requirements are approximately $ 2.21 bn. The question is, how PdVSA is going to finance its 60 % share or $ 1 bn.

PdVSA is making preparations and PdVSA Gas has already begun in January a three-year, $ 375 mm exploration, offshore drilling the first of 10 wells in the so-called Deltana platform next to the border with Trinidad.