September 22, 2004
Statoil looks to expand Venezuela heavy oil operations
(Dow Jones) - "Statoil ASA (STO) is interested in expanding operations at Venezuela's Sincor heavy crude upgrading project and in launching new natural gas projects, news agency Venpres reported, citing comments by Statoil President Helge Lund. 'We have a special interest in participating in ... the gas business, as well as beginning projects related with Sincor and the Mariscal Sucre project'.

Statoil is a partner in Sincor along with French's Total (TOT) and state oil company PDVSA (PVZ.YY). Venezuela currently has three other heavy crude projects in the Orinoco area: Petrozuata, Hamaca and Cerro Negro. PDVSA says these projects currently produce 500,000 barrels a day (...) The government says it is organizing a licensing round for new heavy crude projects in the area.

The oil ministry is also drafting the terms of a new offshore natural gas licensing round at Mariscal Sucre in Eastern Venezuela, and the Gulf of Venezuela in Western Venezuela. Statoil officials have said they are interested in both of the natural gas areas.

Statoil currently operates block one of the Delta platform, where it plans to drill three wells by the end of this year. The area is a continental shelf extension of the Orinoco River's delta along the eastern coast of the country".