(Upstream) - "Norway's Statoil said it had signed a memorandum of understanding to reduce its stake in Venezuela's Sincor oil project as part of the country's renationalisation drive, and added that the deal was 'satisfactory'.

Statoil said in a statement it was satisfied with the outcome of the negotiations and that it would cut its stake in the project to about 10% from 15%, which is in line with market expectations.

'Statoil has agreed with the Venezuelan authorities' compensation terms and governance conditions that make it possible for Statoil to continue as a partner on this successful extra heavy oil project,' the company said.

'The compensation has been based on negotiations of the project's future value.'

Statoil said the agreement signed was part of a three-phase process and that there were still important issues to work out with Venezuela.

BP, Chevron and Total have also signed deals to stay in Venezuela, taking minority stakes in the Orinoco projects, but US oil giants ConocoPhillips and ExxonMobil left the projects.

The four Orinoco projects are valued at more than $30 billion and can produce 600,000 barrels per day, Reuters said".