Venezuelan heavy oil company Sinovensa plans to increase its production capacity to 165,000 barrels of oil per day (bpd) from the current 105,000 barrels by expanding its plant, state oil company Petróleos de Venezuela (PDVSA) said on Tuesday.
Sinovensa, a joint venture between PDVSA and China’s state-owned CNPC, located in the Orinoco Oil Belt in southern Venezuela, produces Merey crude, which is demanded by Asian refiners.
“The president of China National Petroleum Corporation (CNPC) America, Jia Yong, the president of China Huanqiu Contracting & Engineering Corporation (HQC), Wang Xinge, and the president of Petroleum Sinovensa, Alberto Bockh (…) verified the optimal conditions and advances in the facilities, to start its next start-up, “PDVSA said in a statement.
The expansion of the operating areas of Sinovensa, the second largest field of foreign participation in the country, could slow down a freefall in production in the South American country, due to the reduction in investments and sanctions.
“The expansion will generate resources aimed at the Venezuelan people,” said the oil minister and president of PDVSA, Manuel Quevedo, quoted in a statement from the state.
Oil company Sinovensa, of Merey crude, produced 117,000 bpd, 88% of what was planned, according to a May report seen by Reuters.
China has lent more than US $ 50 billion in Venezuela in the last decade that is paid with crude supplies, ensuring the supply of energy for its economy.