Venezuela assures foreign firms on Orinoco refining http://today.reuters.com/news/articleinvesting.aspx?view=CN&storyID=2006-09-12T214940Z_01_N12354271_RTRIDST_0_ENERGY-VENEZUELA-ORINOCO.XML&rpc=66&type=qcna
Tue Sep 12, 2006
CARACAS, Venezuela, Sept 12 (Reuters) - Venezuela on Tuesday reassured foreign oil firms they could keep majority stakes in projects refining heavy crude from the Orinoco Belt, but reiterated that the state would control upstream work.
Venezuela used to average a holding of about 40 percent in the four projects to develop the treacly crude of the Orinoco Belt but state oil firm PDVSA is increasing its stakes to at least 51 percent.
But Energy and Mines Minister Rafael Ramirez said PDVSA would not increase its holdings in the refining work.
"In concrete terms, this migration will entail PDVSA assuming a majority shareholding in the primary exploration and production activities, but not on the downstream (upgrading) side of the business," he said, according to the text of a speech delivered in Vienna and distributed in Caracas.
The Orinoco Belt produces about 620,000 barrels per day of heavy crude that has to be upgraded to synthetic oil.
Companies working in the Orinoco Belt include Exxon Mobil (XOM.N: Quote, Profile, Research) ConocoPhillips (COP.N: Quote, Profile, Research) BP (BP.L: Quote, Profile, Research), Total (TOTF.PA: Quote, Profile, Research) and Statoil (STL.OL: Quote, Profile, Research).
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