If the price of oil keeps tanking Chavez will approve the LC Project.

Venezuela to seek output cut if oil prices keep falling

Venezuela, South America's biggest oil producer, is likely to suggest the Organization of Petroleum Exporting Countries (OPEC) to cut oil output quotas during their meeting in September, if prices continue to fall, Venezuelan Energy and Petroleum Minister Rafael Ramírez said on Tuesday.

OPEC should take a responsible stance and not allow oil prices to tumble, Ramírez said.

"In the OPEC meeting we should determine whether prices continue to plunge (and) even consider a production cut. We will bring this proposal to the meeting," Ramírez said.

Venezuela believes that oil inventory levels "are good," Ramírez added.