Phillips increases interest in Hamaca project to 40 percent

Petroleum News Alaska Staff

Phillips Petroleum Co. has agreed to exchange its 18 percent working interest in the LL-652 oil field in Lake Maracaibo, Venezuela, for two-thirds of Atlantic Richfield Co.’s 30 percent working interest in the Hamaca heavy oil project in Venezuela’s Orinoco oil belt.

The exchange boosts Phillips’ share in the Hamaca project from 20 percent to 40 percent.

Texaco has agreed to acquire the remaining one-third of ARCO’s Hamaca interest.

The additional working interest will double Phillips’ reserves in Hamaca to about 700 million barrels of oil equivalent and increase Phillips’ total worldwide reserves by 32 percent, to nearly 3 billion barrels of oil equivalent.

Phillips expects the Hamaca heavy oil project to begin producing 36,000 barrels per day in mid-2001, then reach peak production of 190,000 barrels of crude oil per day in 2004 and continue that level of production for 35 years. The cost for the project to reach peak production is $3 billion.

Phillips’ co-venturers in the Hamaca project are Petroleos de Venezuela S.A., with 30 percent, and Texaco, with another 30 percent. The companies manage their interests through a joint operating company called Petrolera Ameriven.