FACTBOX-Venezuela OPEC cuts on Orinoco heavy oil projects

Fri Jan 26, 2007 4:02pm EST

 Jan 26 (Reuters) - Venezuela's energy ministry has ordered
four heavy crude upgrading projects operating in the nation's
Orinoco belt to cut production in line with its 138,000 barrel
per day (bpd) OPEC cut agreed in October.
 Venezuela has ordered a total of 106,000 bpd in cuts from
the four projects, Cerro Negro (Exxon Mobil (XOM.N) 41.67 pct,
BP (BP.L), 16.66 pct, PDVSA 41.67 pct), Petrozuata (Conoco
Phillips (COP.N), 50.1 pct, PDVSA 49.9 pct), Hamaca (Conoco
Phillips 40 pct, Chevron (CVX.N) 30 pct, PDVSA 30 pct) and
Sincor (Total (TOTF.PA) 47 pct, Statoil (STL.OL) 15 pct, PDVSA
38 pct).
 The projects turn tar-like Orinoco crude into lighter
synthetic oil. The output cuts, which apply to the upgraded
synthetic crude, and production capacities are as follows:
PROJECT        CUT (bpd)          SYNCRUDE CAPACITY (bpd)
Cerro Negro    36,000             108,000
Petrozuata     20,000             120,000
Hamaca         27,000             181,000
Sincor         23,000             200,000
    Total   106,000            609,000
 Venezuela has said it wants all of its OPEC cuts to come
from the Orinoco Belt, but has not clarified where the
remaining 32,000 bpd will come from.
 Venezuela has also agreed to cut an additional 57,000 bpd
as of Feb. 1 as part of the OPEC cut agreed upon in the
December meeting. Authorities have not provided details on
where these cuts would come from.
 PDVSA is seeking a majority stake in all four projects.
PDVSA has its own production of heavy crude in the Orinoco belt
that is not related to the Orinoco projects.



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