EL UNIVERSAL

The Energy and Petroleum Ministry officially announced that Venezuela is terminating production of orimulsion currently used to fuel powerhouses in several nations worldwide.

Venezuela made such a move after a comprehensive survey on the product found that orimulsion is not a suitable use of Venezuelan extra-heavy crude oil.

"In the past, they intended to advocate profitability of orimulsion by arbitrarily rating the extra-heavy crude oil used to produce orimulsion as natural bitumen. Nevertheless, in December 2003, the Energy and Petroleum Ministry determined that reserves in the area allocated to Bitúmenes del Orinoco (Bitor, the orimulsion marketing arm of Venezuelan state-run oil holding Pdvsa) were extra-heavy crude oil. Therefore, references to bitumen were removed in the amended Organic Law on Hydrocarbons."

Even though views on this matter are diverging, Venezuelan oil senior officers believe that upgrade of heavy-crude oil and even their mixture with light crude oil could result in greater valorization of the natural resource.

Bitor already shut down Module One, located in Morichal, eastern Monagas state, and has been terminating the existing orimulsion supply agreements. Meanwhile, Sinovensa a partnership between Pdvsa and two Chinese oil firms, will stop producing orimulsion at Module Two next December 31st.

This business unit will be turned into a joint venture to manufacture oil mixes and upgrade such mixes once the suitable facilities are available.

Translated by Maryflor Suárez R.