PDVSA could sell orimulsion at heavy crude prices

The price increases that Venezuela's state oil company PDVSA is considering for its orimulsion fuel could peg its price to heavy crude, government press agency Venpres quoted energy and mines minister Rafael Ramirez as saying Tuesday. PDVSA sells orimulsion at less than US$4 a barrel plus 1% royalty. The product could be sold with conventional blends or processed by Venezuela's four heavy crude upgrade projects and sold at US$17/b, Ramirez said. "Clearly damage is being done to the treasury and we have decided to limit orimulsion production," he said, adding "Venezuela will respect contracts already signed and companies to which we have obligations."