By OGJ editors
HOUSTON, Aug. 9 -- ChevronTexaco plans to build a multi-billion dollar facility to upgrade extra-heavy crude from Venezuela's eastern Orinoco belt, according to an online report Friday by Business News Americas.
According to the Latin American news service, Ali Moshiri, president of ChevronTexaco's Latin American operations, said in a company release, ". . . we are proposing a new major project in the Faja that is composed of an upstream development, a pipeline and an upgrader complex capable of manufacturing from 200,000 to 400,000 b/d of high-quality synthetic crude and products."
Reuters news service reported that the project carries a price tag of $6 billion. However, Business News Americas said a ChevronTexaco "spokesperson could not confirm that figure."
Media-relations representatives at ChevronTexaco's headquarters in San Ramon, Calif., did not respond Monday to telephone and email inquiries about the proposed project.
According to Business News Americas, the proposed deal would be signed under terms of Venezuela's 2001 hydrocarbons law, which some international oil companies have criticized as unfavorable to new investments. Orinoco crude is too heavy for normal refining processes and must be upgraded for processing.
ChevronTexaco has a 30% stake in the $4 billion Hamaca heavy crude upgrade project scheduled for completion later this year, said Business News Americas. ConocoPhillips owns 40% of the Hamaca project, while Venezuela's state oil company PDVSA owns the remaining 30%.