Sincor Company News

Total is in fresh talks with the Venezuela government about expanding its operations in the South American nation.

Total's upstream production rose to 2,461 kboe/d in the fourth quarter 2007. This was a 2.4% increase from 2006 fourth quarter.

After issuing a decree in November 2007 creating the Mixed Company PetroCedeno, the Venezuelan authorities issued on January 10, 2008 a decree transferring Sincor's extra-heavy oil development operations in the Orinoco Belt to the new company.

Total announces the signature of two joint study agreements with PDVSA concerning the Junin 10 block in the Orinoco Belt in Venezuela.

Two of the Orinoco extra-heavy crude oil projects Venezuela's government aims to nationalize are resisting the move, energy and oil minister Rafael Ramirez said.

Venezuela's government has instructed the four Orinoco crude oil projects to reduce synthetic crude exports by 3.3 million barrels a month, or 110,000b/d.

Venezuela's energy and oil minister Rafael Ramirez, who is also president of state oil firm PDVSA, will advance President Hugo Chavez's nationalization agenda in his sector.

Venezuela's President Hugo Chavez said Monday afternoon during a televised speech that he would nationalize at least one power company, the Orinoco oil upgrade projects and incumbent carrier Cantv.

Fitch Ratings has released a special report, titled 'Venezuela's Heavy Oil Projects: The Beginning of the End?' that details the rationale behind Fitch's May 11, 2006 decision to downgrade the senior secured debts of partnerships for the projects.

The CVP affiliate of PDVSA that oversees contracts with domestic and foreign oil companies has reiterated its plan to increase its present stake in four Orinoco extra-heavy crude projects to 60% and then seek to double production.

Moody's has downgraded its ratings to B1 from Ba3 for the secured long-term debt issued by four heavy oil projects in Venezuela. The rating outlook is stable.

Credit ratings agency Fitch has cut the ratings of all four partnerships between Venezuela's state oil firm PDVSA and oil firms that together produce some 600,000 barrels a day (b/d) of synthetic crude.

Venezuela's energy and oil ministry has approved a request from French energy major Total to partner with Norway's state oil firm Statoil in natural gas E&P in block 4 of the Plataforma Deltana.