OPEC

Abstract

In recent years, the Organization of Petroleum Exporting Countries (OPEC) has sought to support international oil prices through production cutbacks. In 2001 alone, the cartel implemented three production curtailments. Venezuela, one of the founding members of OPEC and its third-largest producer, has adhered to OPEC's production policy so far this year. Fitch believes OPEC's production policy directly affects Venezuela's heavy oil projects (VEHOPs)-Petrozuata, Cerro Negro, Sincor, and Hamaca-all of which are rated by the agency. This article explores how mandatory OPEC curtailments affect the credit quality of these four Venezuelan oil projects.