February 12, 2006	Sunday	Muharram 13, 1427

CARACAS, Feb 11: Venezuela plans to increase production of heavy crude oil this year at existing oil fields in the Orinoco tar belt, a state oil company official said on Friday.

“We’re looking at a modest increase,” in the Orinoco River basin of eastern Venezuela, a manager at Petroleos de Venezuela SA said on condition of anonymity, saying he wasn’t authorized to speak publicly.

One of four projects underway in the area is the Petrozuata project, a partnership between the state oil firm PDVSA and Houston-based ConocoPhillips Co. It involves drilling heavy crude and processing it into synthetic oil. Last year, the project’s refinery near Puerto La Cruz underwent work to increase output from 120,000 to 145,000 barrels a day.

The heavy crude increase is expected to help compensate for declines at some conventional oil fields, where officials last year accused some private firms of trimming output to try gain leverage in contract talks.

The state oil firm is taking a majority stake this year in new joint ventures that the government has ordered set up to replace previous agreements at 32 oil fields.—AP