April 6, 2005
Venezuela cuts Orinoco oil belt Into 18 development blocks

(Dow Jones Newswires) - "Petróleos de Venezuela has split up its vast Orinoco oil basin into 18 separate development blocks that could begin to be developed by the end of this year, Venezuela Oil Minister Rafael Ramírez said. 'In the (Orinoco) belt there are 18 blocks,' Ramírez said during a speech to oil executives Tuesday. 'They are distinct fields, with distinct crude qualities'.

Venezuela hopes to strike joint-venture agreements with foreign firms to ramp up the production of synthetic crude that comes from the extra-heavy Orinoco tar oil before the end of this year. Venezuela currently produces around 500,000 barrels a day of synthetic crude at four joint venture projects in the area - Petrozuata, Hamaca and Cerro Negro (.)

Venezuela has 238 billion barrels of unconventional oil reserves in the Orinoco area, and Ramírez said it would like to add these reserves to the country's 78 billion barrels of conventional oil reserves. 'We are going to certify our (Orinoco) reserves,' said Ramírez. 'This has to do with the economic factors of exploiting it.'