Source:
Houston ChronicleJune 27, 2007, 10:23PM
Chevron is keeping the door open
U.S. oil company to work with Venezuela after its peers Exxon Mobil and ConocoPhillips decide to bow out
By KRISTEN HAYS
Copyright 2007 Houston Chronicle
Chevron Corp. is the last U.S. oil major standing in Venezuela's resource-rich Orinoco River basin after Exxon Mobil Corp. and ConocoPhillips this week refused to capitulate to new working terms imposed by Venezuela's government-controlled oil company.
While Chevron gave up operating an oil production pro- ject like its peers, the company retained its 30 percent interest in the Hamaca project.
The San Ramon, Calif., company's continued presence also maintains access to its significant natural gas plays elsewhere in Venezuela, which experts say is likely enough incentive to give in on the Orinoco.
"They are relatively minor in the Orinoco, but they are a big player in the gas sector," said Patrick Esteruelas, an analyst with political risk consultancy Eurasia Group. "Not to play ball on one side of the business is to shut down all other opportunities in the country."
Chevron spokesman Leif Sollid said Wednesday that its negotiations with Petróleos de Venezuela, or PDVSA, were acceptable, and "we look forward to continuing our long-standing partnership with Venezuela and the Hamaca project's success."
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