Arco to Invest in Venezuelan Oil Projects

Atlantic Richfield Co. said it plans to invest $1.7 billion in Venezuela in a series of projects, including a heavy-oil joint venture with Corpoven, a unit of Venezuela’s state-owned oil company. The heavy-oil project will be developed over the next eight years. Los Angeles-based Arco’s move is the latest in a string of big investments in Venezuela’s energy industry that have materialized since the country opened its oil industry to foreign investment in 1993. On Wednesday, Arco; White Plains, N.Y.-based Texaco Inc.; Bartlesville, Okla.-based Phillips Petroleum Co.; and Corpoven agreed to invest $3.5 billion in a joint venture to produce and upgrade extra-heavy crude from the Hamaca region of Venezuela. Arco and Corpoven each have a 30% holding in the venture, while Texaco Inc. and Phillips Petroleum Co. hold 20% each. The venture will be called Petrolera Hamaca. Atlantic Richfield stock fell $2.25 to close at $68 on the NYSE, which traders attributed to news of a one-time charge and to oil-price weakness.