TotalFinaElf announces the launching of the initial production phase of the Sincor project in Venezuela, as scheduled. TotalFinaElf is the main shareholder (47%) in charge of the project along with the Venezuelan national oil company PDVSA (38%) and Statoil (15%).

The initial phase will allow for production to rapidly reach 40,000 barrels a day of extra-heavy crude oil (API 8.5°), which will be blended with 25,000 barrels of light crude oil (API 30°) a day to obtain a blend of API 16°, to be marketed internationally. Output can be increased to 80,000 barrels a day or more of extra-heavy crude according to market conditions.

The initial production phase will end in late 2001, when the upgrader treatment facility now under construction in José, on the Caribbean coast, is completed. At that time, output will gradually be increased up to 200,000 barrels a day of extra-heavy crude oil, which will be diluted in order to be piped to the José facility. There, it will be upgraded into 180,000 barrels of high-quality synthetic crude oil (API 32° containing very low sulfur) known as Zuata Sweet.

First exports of Zuata Sweet are scheduled to begin in early 2002. The duration of the contract is 35 years beginning from that date.

Overall investment in this project for the production, upgrading and marketing of extra-heavy crude oil from the Orinoco Belt is $4 billion. TotalFinaElf is also the operator of Venezuela’s Jusepin field (55%) which currently produces 35,000 barrels of light oil a day.