BG Group plc confirms today that it has been selected, along with partner ChevronTexaco, as the preferred bidder for Block 2 in the Plataforma Deltana, offshore Eastern Venezuela. Block 2 contains the significant undeveloped gas discovery known as the Loran Field which was discovered in 1982.

BG and ChevronTexaco will now enter into discussions with the Venezuelan Ministry of Energy and Mines (MEM) to finalise the work programme and commercial terms of Block 2.

BG will operate the Block on behalf of the group which is likely to include Petroleos de Venezuela SA (PDVSA), the State-owned oil and gas company.

At a signing ceremony in Caracas, Peter Dranfield, Vice President, BG Group plc, said: "We are very pleased to have been selected, with partner ChevronTexaco, as the preferred bidder for Block 2 in the Plataforma Deltana and we look forward to concluding our negotiations with the Government of Venezuela. BG and ChevronTexaco share a successful working partnership in the region producing gas from neighbouring waters for domestic and LNG markets. Our aim is to create similar exploration and production success in Venezuela."

The northern boundary of Block 2 runs along the border with Trinidad & Tobago.

BG (Operator, 50 per cent) and Chevron Texaco (50 per cent) are partners in Block 6d in Trinidadian waters, which is adjacent to Block 2. The Loran Field extends across the border into Block 6d.