North American Blue Energy Partners says restarting an Orinoco Belt furnace could add 8,000 to 10,000 barrels a day, extending its Venezuelan expansion under an August U.S. agreement.
On Nov. 2, NABEP announced that it had restarted the furnace at Zuata 2 (Petrocedeño) on Oct. 31. The company said the unit had been out of service for five years and that crews completed repairs, technical inspections and mechanical tests before the restart. NABEP expects the increase within weeks. It has not announced an output reading from after Oct. 31.
In an Oct. 31 update, NABEP said total production reached 223,509 barrels of oil equivalent per day on Oct. 19. A separate company update from August cited about 200,000 barrels per day. The figures use different units, and NABEP has not released a post-restart production figure.
NABEP describes the furnace as a treatment step for extra-heavy crude: heat helps remove water before further processing. The company says oil must have a water content of 2% or less to qualify for sale.
A White House fact sheet says NABEP granted the U.S. Department of War’s Office of Strategic Capital a 35% equity stake in its parent company under the August deal. It also says the U.S. Department of State may purchase 20% of NABEP’s output at production cost and has first refusal on the rest.
Reuters reported that NABEP faced challenges obtaining capital and equipment and repairing infrastructure as it expanded. Three workers and a business associate told Reuters the company owed some partners money; Reuters said it could not determine the amount. NABEP spokesperson Terry Wade told Reuters the company was adding suppliers, paying invoices and would respond to disruptions.
NABEP CEO Alejandro Betancourt said the company’s rig fleet would reach 41 in November. EconoTimes previously covered NABEP’s Venezuelan rig fleet target.