Petroleum

The state-owned corporation Petróleos de Venezuela (Pdvsa) has drawn up a five-prong strategy for 2005-2012, aimed at increasing crude production to 5.84 million barrels per day (mbd). The strategy outline is: quantification and certification of reserves, development of the Orinoco Belt, exploitation of the gas potential, expanding refining capacity, and development of oil infrastructure in the eastern part of the country.

This ambitious program will require an investment of US$ 56 billion during the period in question. According to government figures, Pdvsa will provide 70% of the money, with the private sector contributing the remainder. The breakdown of production would thus be 4.19 mbd for Pdvsa while the remainder will be spread out among joint ventures (460 mbd), association agreements (622 mbd), new Orinoco Belt projects (615 mbd) and 121 mbd under a profit-sharing scheme.

Plans are to build three new refineries and expand the facilities in Puerto La Cruz (Anzoátegui State) and El Palito (Carabobo State); a total of US$ 10.37 million will be allocated for this purpose. At the same time, conversion capacity at these two plants will be expanded between 2009 and 2010, adding 200,000 and 140,000 barrels per day, respectively, to the production of by-products.

Implementation of these projects will call for activities in the areas of construction, engineering, collection infrastructure, storage, refining and shipping of crude oil. Moreover, more loading racks and pipelines will be put into operation to guarantee fuel supplies throughout the country, while 40 new tankers will be built to handle at least 45% of Venezuela’s crude oil exports.