Minister Alvaro Silva inaugurates Cerro Negro heavy oil upgrader plant

Sep 05, 2001 02:00 AM

Energy Minister Alvaro Silva inaugurated the ExxonMobil-PdVSA-Veba Oel, Cerro Negro heavy oil upgrader plant at Jose complex in Puerto La Cruz. Silva in his plant inauguration speech, said that the government proposed new oil law is aimed to bring greater clarity and transparency to the oil sector. "This law is establishing clear rules... in place of obscure regulations subject to interpretation," Silva said.
He also firmly defended the proposed the legislation and said that the new law would provide greater efficiency in guaranteeing the country's flow of oil revenue. Silva stressed the new law was still just a legislative draft and was open for discussion.

The Cerro Negro project upgrades 8.5 API crude from the Orinoco belt area of Cerro Negro in the southern part of the state of Anzoategui to a synthetic lighter crude oil of 16.5 API crude, with projected exports of 120,000 bpd to be refined in the US ExxonMobil-PdVSA refinery in Chalmette, Louisiana. ExxonMobil and its partners have invested $ 1.6 bn in the Cerro Negro project, which can process 120,000 bpd of heavy crude oil.
Over the next 35 years, they hope to produce 1.5 bn barrels of oil, which could be worth nearly $ 40 bn at current prices on mercantile exchanges, although the company declined to put a number on its expected sales.

ExxonMobil and Venezuela's oil company PdVSA, each own 41.67 % interest in the project, with Germany's Veba Oel holding the remaining 16.67 % stake. The whole project is operated by Operadora Cerro Negro a wholly own ExxonMobil company.

Source: Petroleumworld
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