....maybe he will start revising is thinking toward mining as well.

Could cut royalties to 20 pct if 30 not viable-source

* Could be 1st time lowers levies on foreign energy co's

* Lower oil prices testing projects in Orinoco region

By Marianna Parraga

CARACAS, Sept 30 (Reuters) - Venezuela is mulling reducing the royalties it will collect for its Carabobo project in the Orinoco oil belt, potentially the first time President Hugo Chavez lowers levies on energy production by foreign companies, a source familiar with the talks told Reuters on Wednesday.

Chavez nationalized the oil sector as part of his self-declared socialist revolution in the OPEC country, one of the world's largest crude exporters, and hiked royalties and taxes as crude prices rose in recent years.

But sharply lower oil prices are testing some projects the Venezuelan leader hopes will help develop the Orinoco region, home to some of the world's largest hydrocarbon reserves.

Companies taking part in the bidding process to develop seven blocks of the Carabobo project have been put off by high taxes and royalties and tight access to credit amid the global recession.

"The royalties will be lowered to 20 percent if the projects are deemed economically not viable with them at 30 percent," the source said.

The person spoke after a meeting between government officials and representatives of oil companies interested in participating in the project, Venezuela's first tender in over a decade.

Venezuela plans to receive bids for the repeatedly delayed project in January and announce the winners in February, the person said on condition of not being named since the talks are ongoing.

The Carabobo Project aims to build three upgraders to turn the Orinoco belt's tar-like crude into oil for exports and produce around 1.2 million barrels per day, with the initial investment seen between $10 billion and $20 billion per area.

Companies that have shown interest in the tender include Britain's BP (BP.L), U.S.-based Chevron (CVX.N), China's state-owned CNPC, Spain's Repsol YPF (REP.MC), France's Total (TOTF.PA), Italian ENI (ENI.MI) and Portugal's Galp Energia (GALP.LS).

Companies paid $2 million for the area's geographical data, and winning bidders will become minority partners with Venezuela's state run company PDVSA and likely have to pay a combined total of billions of dollars for access to the reserves.

The investment costs pose a threat to the project's viability given the high-risk perception of PDVSA in international markets, said Pedro Mario Burelli, a former PDVSA director.

"The risk is high because it involves PDVSA, a company that has an increasing risk profile and is the majority partner in these projects," he said. (Writing by Kevin Gray; Editing by Gary Hill)