Exxon Mobil says Venezuela heavy oil back at full steam

Reuters, 05.01.03, 12:00 PM ET

NEW YORK, May 1 (Reuters) - Venezuela's foreign-financed Cerro Negro extra-heavy oil project is back at full capacity after recovering from a stoppage during a national workers' strike earlier this year, project partner Exxon Mobil Corp. (nyse: XOM - news - people) said on Thursday.

"We're back at full production at Cerro Negro," Exxon Mobil spokesman Pat Mulva said in a conference call with analysts.

Exxon Mobil is partnered with state oil firm Petroleos de Venezuela (PDVSA) in the Cerro Negro joint venture.

The project has the capacity to process 120,000 barrels per day (bpd) of extra heavy oil from the Orinoco region into 108,000 bpd of light synthetic oil. Cerro Negro and three other projects which upgrade Orinoco oil were halted by an oil strike between December and February.

The Cerro Negro disruption reduced Exxon Mobil's first quarter oil production by 35,000 bpd, Mulva added.

The four Orinoco projects, which partner PDVSA with international oil firms, had been producing over 400,000 bpd of Venezuela's total output of 3.1 million bpd in November.