Jan 26 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.