Sipetrol to Decide on Heavy Crude Expansion in 2007

Chilean state oil company Enap's international subsidiary Sipetrol will decide next year whether to begin operations in Venezuela, according to a report from newspaper Diario Financiero posted by Enap on its website.

Venezuela's state oil company PDVSA has expressed interest in entering into an association with Sipetrol for the E&P of heavy crude. Enap would then process the heavy crude in its Chilean refineries.

"We are interested in this conversation, but the decision will be made in the course of 2007," the article quoted Sipetrol CEO Nelson Muñoz as saying.

Sipetrol aims to post profits of US$60mn-70mn in 2006, according to the article. By comparison, Enap posted net profits of US$198mn in 2005.

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