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Sowing the Oil a Strategic Vision of the Hydrocarbons Industry, the Country, and the Latin American Region

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Sowing the Oil a Strategic Vision of the Hydrocarbons Industry, the Country, and the Latin American Region Bolivarian Republic of Venezuela Caracas, September-October 2005 • # 3 A Newsletter about Venezuela’s National Oil Industry Exploration 4 & Production 9 Ramírez: PDVSA Production capacity to is an instrument at the increase to 5.4 million service of the country barrels per day by 2012 Refining The Plan for 10 Orinoco Oil Belt 13 Refining investment for To produce 1.2 million $16.5 billion planned barrels per day of Sowing heavy crude by 2012 the Commercialization il & Supply PDVSA’s O 14 16 Strategic Plans by sector PDVSA increases export Venezuela celebrates page project a long-term vision of the market diversification OPEC’s 45th anniversary 2 Venezuelan Oil and Gas Industry by 2030 Excerpts from President Hugo Chávez’s address The Plan for Sowing the Oil a strategic vision of the hydrocarbons industry, the country, and the Latin American region The President of the In Perspective Certification of Reserves Bolivarian Republic This strategic plan covers the next The first project will certify Venezuela’s of Venezuela, Hugo 25 years, from 2005 to 2030, so as to oil reserves before the world. This is an Chávez, presented the coincide with the Bolivarian Bicenten- exploration program for the next sev- nial 1830-2030, and upon its comple- eral years, with greater scope, scientific projects and vision of tion we will be able to tell the world research, for prospects. The Orinoco the National Oil and Gas “We have not plowed in the sea, the Oil Belt covers an area of 55,314 Industry for the next Nation has been saved, rebuilt, and is square kilometers. There are 11,593 going forward in an irreversible process square kilometers under exploitation 25 years forever.” In honor of the spirit of that at the moment. The area which will be statement, in honor of the famous Ven- quantified covers 18,000 square kilo- ezuelan writer, Arturo Uslar Pietri, of Dr. meters. Other remaining and reserved Juan Pablo Pérez Alfonzo (Venezuelan areas cover 25,000 square kilometers. founder of OPEC) and of all those who ecently PDVSA’s Strategic warned, wrote, said, fought and even Venezuela has reserves of some RPlans by sector were presented died for the national sovereignty of our 312,000 million barrels of oil and the in Caracas, projecting a long-term hydrocarbons, I propose that we name coup d’etat (refers to the cup against vision of the hydrocarbons industry the 2005-2030 Plan: “Sowing the Oil”. Chávez gov’t in 2002) was nothing for Venezuela and the Latin American more than the consequence of our region. PDVSA’s Strategic Plans by sector goverment plan to recover control of are: quantification and certification the oil industry for the State and place Bellow we present excerpts of the of our reserves, the Orinoco Project, it at the service of national interests. openning speech of the Venezuelan the Caribbean Delta Project, Refining, President, Hugo Chávez: Infrastructure and Regional Integration. Orinoco Project Today we announce to the Nation and All Venezuelans know that Petróleos de The Orinoco Project covers the Orinoco to the world our strategic plans as Venezuela was in the hands of a cor- axis and includes part of the Apure initiated and generated by the New rupt, anti-national, treasonous elite and River, a great development area. The PDVSA. It is a national project, which powerful international interests. They plan is to explore and develop the we have been carrying forward for had managed to control the oil industry various fields of the Oil belt: Boyacá, several years, to which the government, from its brain to its hands, its policies, Junín, Ayacucho and Carabobo, the nation as a whole, is committed in strategies, and businesses. And they formerly known as Machete, Zuata, body, soul and spirit ... had placed this enormous potential Hamaca and Cerro Negro respectively. at the service of foreign interests. The New PDVSA Contact • September-October 2005 Oil Vision The Plan for “Sowing the Oil” means We have to balance the country’s extensions of good land where there the utilization of oil, the whole oil infrastructure to foster Venezuela’s is not one refinery, not one pipeline, industry, as a lever for the integrated not one gasline, not one oil industry integral development. The plan is development of this axis and this whole installation. We have to balance infra- nation. We are using oil in that direction, to install a development pole in the structure so as to promote integrated to promote integrated social, economic heart of the country and some of development in the country. This Plan and productive development. We could these projects are already in motion includes the construction of a group take a block from the Orinoco Oil Belt of refineries in Venezuela; one of them to form an alliance with South America’s will be in the Barinas plains, with a oil companies, for example, with capacity of 50,000 barrels a day. Then Ecopetrol, or Petroecuador, Petroperu, Deltana Shelf, where we have already another refinery is planned in Caripito, Enarsa of Argentina, because we want started to drill; the Rafael Urdaneta Monagas State, also with a capacity to place this great energy resource Project in the Gulf of Venezuela and of 50,000 barrels a day, producing at the service of all the people on the surrounding areas of the Paraguaná asphalt. And the star refinery, the planet, for their future development... Peninsula. We could call this the Del- newest, in Cabruta, Guárico State. A taCaribe Project for the Orinoco at the great refinery for 400,000 barrels a day The old oil elite was really only an in- Delta and the Caribbean. Such project of oil, in the heart of the Orinoco area, strument of North American hegemonic is also an act of sovereignty over a geo- there in Cabruta, at the heart of Ven- interests and the transnational compa- political space. We are taking a step ezuela. The plan we have is to install nies. This must be said. “In speaking forward towards the Caribbean and a development axis in the geographi- the truth, I neither offend nor fear”. a step sideways, to the right, towards cal heart of the country and, some of our Atlantic border, which had been these projects are already in motion. DeltaCaribe Project totally abandoned; the domestic gas business, we must guarantee all these As outlined before other key project is Gas will be used as an element for energy supplies to our own people. We the one related to refineries. Today we endogenous development, for the all have a right to use these resources are refining 1.3 million barrels a day, industrialization of the country. One to improve our quality of life. We plan to that is to say that we are exporting ap- of the main objectives of this project build a pipeline which goes from Sucre, proximately 2 million barrels of crude includes the great petrochemical plan. crosses the center of the country, a day. With this plan we are going to crosses the plains, to take gas to the increase refining to 2 million barrels We hold the 8th largest gas reserves in West and thus balance the potential: within Venezuela. Part of this develop- the world. We have begun to develop the same for the North and South. ment project is to increase refining this potential gas business to benefit capacity in our own territory and also our own nation and regional integration; Infrastructure and in the surrounding Latin American energy cooperation with the countries Refining Projects region, as I already mentioned, one of of Latin America and the Caribbean. the most important refining projects will The Gas Project is divided into various The development of infrastructure; that be the refinery in Pernambuco (Brazil). specific areas: the construction of the is to say, within Venezuela: refineries, Gran Mariscal de Ayacucho Gas In- terminals, oil installations, pipelines, Regional Integration dustrialization Center (CIGMA) in Paria 99% of which are located in the north Peninsula, in the State of Sucre; the of the country, and we have great At the last meeting of the Andean Com- munity in Lima, we proposed the cre- ation of Petroandina and this has been well received by all. We have proposed to South America and we are going forward with the creation of Petrosur, with Argentina, Brazil, Uruguay and we hope other countries will also join Petro- sur. We have created Petrocaribe, with our brothers of the Caribbean islands. We are talking to some governments, with some of the Central American leadership, to see how we can help Central America too, to strengthen political integration, economic integra- President of the Bolivarian Republic of Venezuela, Hugo Chávez Frías and, Rafael Ramírez, Minister of tion, social integration; the dream of Energy and Petroleum and President of PDVSA, oppening the exhibition on PDVSA’s Strategic Plans. Bolívar to achieve a multipolar world. The New PDVSA Contact • September-October 2005 Guidelines The Plan for Sowing the Oil 2005-2030 in context is a tool at the service of our country, fighting along with the State in the reco- very of our sovereignty, fighting along- side the people in the battle against PDVSA is at the service of the exploitation, supporting our national private capital so that it recovers and Bolivarian Republic of Venezuela becomes stronger, establishing new relationships with our national compa- nies. We have here an extraordinary opportunity. We are talking about a set of investments of 56 billion dollars, with a Venezuelan State policy that emphasizes national participation, not only as operators or investors, but also in the supply of goods and services.
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