Venezuela to boost Sinovensa oil project output

CARACAS May 8 (Reuters) - Venezuela's Petrolera Sinovensa oil project will boost output to 110,000 barrels per day (bpd) from 65,000 barrels per day within three months, a director of state oil company PDVSA said on Thursday.

Sinovensa is a joint venture between PDVSA and China National Petroleum Corporation, or CNPC, that produces tar-like crude from the vast Orinoco belt that is mixed with lighter oil and sold as a crude blend.

"Right now we are producing 65,000 barrels (per day) at Petrolera Sinovensa and we are going to increase it to 110,000 within three months," Eulogio Del Pino told reporters on the sidelines of an energy conference.

Sinovensa was created to provide China with a supply of the patented boiler fuel Orimulsion, which sold at prices similar to coal, But Venezuela later discontinued Orimulsion, arguing that upgrading to lighter crude was much more profitable.

Del Pino did not elaborate on how PDVSA would achieve this increase. He said the project is mixing the heavy Orinoco oil with lighter Mesa crude to form a blend known as Merey.

PDVSA runs four heavy crude upgraders that turn Orinoco crude into much more valuable synthetic oil. The four projects plus the Sinovensa operation are now producing more than 640,000 bpd, Del Pino said.

President Hugo Chavez last year led a nationalization crusade that gave the state control over the projects once run by companies including Exxon Mobil (XOM.N) and ConocoPhillips (COP.N), which have taken Venezuela to arbitration for the takeover. (Reporting by Brian Ellsworth; Editing by Christian Wiessner)