PDVSA inks strategic agreement with PETROZUATA and SINCOR over the use of 500.000 Bdl Pipelines

Published October 31st, 2000 - 03:00 GMT

PDVSA Venezuela's oil company has signed an agreement with Petrozuata and Sincor Venezuela's consortiums in the exploration and production of heavy oil from the Orinoco belt to transport on the same pipeline their belt production to their refining plants in Jose refinery complex under construction at the present, said Petrozuata in a press released.

" We have made an synergy in the transportation of our production reducing the transport cost by half." Mauricio Di Girolamo President of Petrozuata said. The agreement was signed by Digirolamo, Jose Hidalgo President of Sincor and Andres Riera PDVSA Orinoco Belt Project Director.

The two pipeline runs over 200 km from the Orinoco Belt to the Jose Refinery Complex an will have the capacity to transport over 500.000 bdl.

Conoco, owns 50.1 percent of Petrozuata, and PDVSA, owns the balance, The $3 billion project will transform 120,000 bpd of extra-heavy 8.5 degree API crude oil, from the Orinoco heavy oil belt, into 105,000 bpd of products, mostly synthetic crude oil and some gasoil.

Approximately 57,000 bpd will be a heavier grade of crude oil, with an API gravity just below 20 degrees, while the second cut of 39,000 bpd will be a lighter mid-20s degree API grade. The remaining 9,000 bpd will be gasoil crude.

"The utilities are up and running and we are producing steam ... we plan on actually beginning processing by year-end," General Manager James Edmunson told Bridge News in a telephone interview. Sincor is a similar project own by TotalFinalElf, Statoil, and PDVSA.