March 9, 2005
Chávez gives green light to Total for new project to double production

(AP Worldstream) - "Venezuelan President Hugo Chávez sday gave the green light for the French oil giant Total to move ahead with a major project that will double its production there.

'We have decided that Total will go from 200,000 to 400,000 barrels per day, therefore doubling (its production) with an investment of several million dollars,' the Venezuelan president said after a meeting with President Jacques Chirac.

His statement effectively gave the go-ahead for a new project in Venezuela known as Sincor-2, an estimated A€5 billion (US$6.7 billion) project.

Total is already a leading investor in the original Sincor project, which yields 200,000 barrels of oil per day. Sincor-2 would produce a similar amount of heavy oil.

'This is good news,' said Total spokeswoman Catherine Enck. The Venezuelan president met earlier Wednesday with the chairman and CEO of Total, Thierry Desmarest, the spokeswoman said.

Chávez said that authorization for gas production for Total on the Atlantic has also been granted (...)

Venezuela is the world's fifth-largest oil exporter, producing more than 3 million barrels of crude oil a day. Chávez said his country "wants to increase its oil production." t is "one of the rare countries of OPEC and of the world that can increase and even double its production," the president said.

At their meeting, Chirac and Chávez agreed to reactivate a commission to strengthen ties, notably in the energy sector. Chirac praised the progress of democracy in Venezuela and the country's economic performance, presidential spokesman Jerome Bonnafont said (...)".