PDVSA to convert refinery for heavy oil

Eric Watkins
Senior Correspondent

LOS ANGELES, Mar. 15 -- State-owned Petroleos de Venezuela SA (PDVSA) will work with Japan's JGC Corp. on basic engineering for a deep conversion project at PDVSA's 200,000 b/d refinery at Puerto la Cruz.

In a statement, PDVSA said the project—to be completed in 2008—involves adding new technology to enable the refinery to process extraheavy oil from the Orinoco tar belt instead of the lighter crude oil it now processes.

PDVSA said the Puerto la Cruz expansion, estimated to cost $1.7 billion, will enable the facility to refine an additional 80,000-90,000 b/d of heavy crude.

The government of Venezuelan President Hugo Chavez has been implementing a program to nationalize the country's oil industry, including sectors producing the heavy crude to be processed at Puerto la Cruz.

The government this week warned it will assume control of operations unilaterally if the companies do not cooperate by May 1. "If by the deadline there is no agreement, we will take direct control of all these operations," said Energy Minister Rafael Ramírez.

On Mar 12 ExxonMobil said it would participate in a transition committee to oversee the transfer of its control of the Cerro Negro heavy crude facilities in the Orinoco belt. The facilities, which convert tar oil into high-value synthetic crude, are valued at $31 billion.

ExxonMobil and PDVSA each own a 41.7% stake in the venture, with the remaining 16.6% held by BP. In partnership with PDVSA, ExxonMobil and BP invested some $17 billion into Venezuela to set up the Orinoco projects in the 1990s.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

ExxonMobil outlines 2014 production plans


ExxonMobil Corp. said it expects to start production at 10 major projects this year, adding 300,000 net boe/d of net capacity.

ExxonMobil starts production from Damar gas field offshore Malaysia

02/14/2014 ExxonMobil Exploration & Production Malaysia Inc. reported the startup of natural gas production from Damar field, which lies in 55 m of water ...

ExxonMobil expands Permian acreage, enters Utica agreement

02/03/2014 XTO Energy Inc., a subsidiary of ExxonMobil Corp., has agreed to fund development to gain operating equity in 34,000 gross acres in the liquids-ric...

Old onshore concession ends in Abu Dhabi

01/22/2014 Abu Dhabi National Oil Co. (ADNOC) has become the sole shareholder of Abu Dhabi Co. for Onshore Oil Operations (ADCO) after the expiration this mon...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected