Venezuela's Ministry of Energy and Mines has ordered state owned Petroleos de Venezuela to scale back its $2.5 billion program to develop Orimulsion, Pdvsa's boiler fuel that is an emulsion of extra heavy crude, water, and a surfactant.
The extent of the cut is undisclosed, but presumably planned expansion beyond volumes needed to cover firm contracts with power plants in Canada, Italy, Japan, Spain, and the U.K. will be delayed. Pdvsa's Orimulsion marketing unit Bitor had hoped to boost output to about 41 million metric tons/year by 1996 from the current 1 million tons/year. Current contracts cover deliveries of 8 million tons the next few years, excluding a pilot project with Florida Power & Light. The ministry also ordered Bitor to present feasibility studies on joint venture projects with foreign partners to develop Orimulsion or other extra heavy crude projects. The orders reflect government efforts to focus Pdvsa resources on light and medium crudes and ministry concerns Orimulsion might be included in Venezuela's Organization of Petroleum Exporting Countries quota.
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