Venezuela signs orimulsion fuel contract with KEPCO

Reuters, 04.15.03, 5:55 PM ET

CARACAS, Venezuela, April 15 (Reuters) - Venezuela on Tuesday signed a contract to supply Korea Southern Power Co. Ltd. (KEPCO) <15760.KS> with 300,000 tonnes of boiler fuel orimulsion annually through 2006, the state news agency Venpres reported. The South Korean state-run power monopoly had purchased its first cargo of the fuel in January from Venezuelan state oil firm Petroleos de Venezuela (PDVSA), the world's sole provider of orimulsion. Orimulsion, a mixture of 70 percent extra heavy crude oil and 30 percent water, is produced in Venezuela's vast Orinoco tarbelt and used for direct burning at power plants. PDVSA also exports orimulsion to China and Italy. Shipments of orimulsion were disrupted during a two-month oil strike started Dec. 2 by foes of President Hugo Chavez.