Oil Report

UPDATE 1-Venezuela's Petroanzoategui upgrader restarted-source

* Running at 74 pct of capacity-source

* Facility had been offline since Nov. (Adds quote, details, background)

CARACAS, Dec 20 (Reuters) - Venezuela’s 130,000 barrel per day (bpd) Petroanzoategui heavy oil upgrader has restarted and is operating at 74 percent of capacity, a source at state oil company PDVSA said on Monday.

The facility had been out of action since late November due to steam generation problems, company sources say. Venezuela’s four upgraders for its Orinoco extra heavy crude belt have been hit by failures and maintenance stoppages since last year

“Today we are processing 96,000 bpd of extra heavy oil,” the PDVSA source told Reuters, asking not to be named.

The upgraders convert tar-like crude from fields to the north of the Orinoco River into more valuable exportable oil. (Reporting by Marianna Parraga; Writing by Daniel Wallis; Editing by David Gregorio)