CORRECTED - BP sells 20% stake in Manakin Gas Field to Trinidad's NGC

BP 'has agreed to sell a 20% stake in a block containing the Trinidad portion in the Cocuina Manakin natural-gas field across the border to the state-owned National Gas Company of Trinidad, the company announced on Monday via email.

BP reported that BP and NGC had signed the agreement on?Monday.

Cocuina and Manakin, which contain 1 trillion cubic feet in natural gas reserves, lie on the border between Trinidad and Tobago, Venezuela and Trinidad, and?the Cocuina segment is part of Venezuela's Deltana Platform undeveloped gas project.

NGC holds a 20 percent stake in the Cocuina portion of the Venezuelan side. The agreement 'comes less that four months after Venezuela granted BP a licence to develop the field.

According to sources, BP and NGC agreed to sell 70% of the gas produced by the project to Atlantic LNG. This company operates Latin America's biggest liquefied gas export facility. In recent years, the complex has been struggling due to a decline in domestic natural gas supply in Trinidad. This has limited output and forced one of its four trains to close. BP holds a 45% stake in Atlantic?LNG. NGC owns 10%, and Shell the remaining 45%. Venezuela's oil minister and NGC didn't?immediately respond to requests for comments.

The development at Cocuina Manakin is progressing towards a final decision on investment, which two sources familiar with the matter stated 'they expect by the end of the year. The remaining 30% of natural gas produced at Cocuina Manakin will go into petrochemicals. Curtis Williams reported from Houston, Deisy buitrago contributed additional reporting in Caracas and Nathan Crooks edited the story.

(source: Reuters)