Contact with the New PDVSA • January 2006 Contact Contact with the New with the New PDVSA PDVSA
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Bolivarian Republic of Venezuela Contact with Caracas, January 2006 • # 4 the New PDVSA A Newsletter about Venezuela’s National Oil Industry Cornerstone Presidents of Venezuela and Brazil, Hugo page Chávez and Luiz Inácio Lula da Silva, begin 4 construction of the “Jose Ignacio Abreu e 2 Lima” Refinery in Pernambuco, Brazil 20 Colombia, Argentina Citgo expands and Venezuela 32 transition delivery of low price point South agreements fuel to native to Mixed Americans in the US Companies 14 East and West PDVSA, world’s Venezuela, interconnected third largest oil a full member by gas 19 company 6 of Mercosur 12 Contact Contact with the New with the New PDVSA PDVSA INTEGRAtiON » Angostura and Punto Fijo Declarations reassert energy integration Argentina, Colombia and Venezuela foster union in the South We are sealing the great South- We are creating alternatives With a brotherhood concept, American pact that we need to for improvement that shall we shall always walk together be free; and, as Simon Bolivar said, let’s finally ensure regional integration to recover from poverty, to make it true. It is possible, build solidarity upon facts it is not a dream Hugo Chávez Néstor Kirchner Álvaro Uribe Vélez President of the Bolivarian President of the Republic President of the Republic Republic of Venezuela of Argentina of Colombia Visits from Néstor Kirchner and Álvaro Uribe Vélez, Presidents of Argentina and Colombia, respectively, reasserted the Petro-American initiative promoted by the Bolivarian Government of President Hugo Chávez Once again, South America is Mercosur, strengthen the South the land, where dreams come American countries. We want to be true; the land of feasible utopias, of integrated to the rest of the world concrete utopias as, some say. And and we are interested in talking within this map and dynamics the with all countries worldwide about Caracas-Buenos Aires axis does integration, with justice, equity, no clearly emerge. From the Orinoco River subsidies, as they are really aberrant down to the Rio de La Plata, a powerful and do significant damage to the new movement has emerged fed by economies of weaker countries. That the will and the pain of our people, is why we say that we believe in interpreted by what we modestly integration, but in an integration with represent, and is taking shape, with its justice, with equal opportunities”, own claims, demands and drives. What stated President Kirchner. we are doing, I think, is answering the need of our people”, stated President Fuel for the South Hugo Chávez, during the last visit of Argentine President, Néstor Kirchner, to Presidents Chávez and Kirchner stated that the entry of Rafael Ramírez, Venezuelan Minister Venezuela to Mercosur, is a historic step. Venezuela last November 22nd, 2005. of Energy and Petroleum and PDVSA President, informed that a mixed In this meeting, taking one more step insertion and we are sure that every company will be jointly incorporated towards their peoples’ union, both day more and more countries will share by Energía Argentina (ENARSA), countries signed various agreements our vision, our orientation, and this the Argentine energy company and which enable the undertaking and strategy”, stated President Chávez. PDVSA, which will be in charge of completion of projects related to supplying up to 5 million barrels per the hydrocarbon sector, as well as “We have taken a historical step in year of industrial and automotive gas knowledge and technology exchanges. the bilateral relationship and I think oil to Argentine markets, as of 2006. that this is a historical step that will “Argentina and Venezuela have no also set a precedent for full regional The possibility for PDVSA and differences regarding international integration. We want to strengthen ENARSA to undertake joint Contact with the New PDVSA • January 006 Contact Contact with the New with the New PDVSA PDVSA exploration and production “the political will of Colombia to have was aimed at assessing current status activities in both countries was also Venezuela build the oil pipeline or poly- of relations between both countries, evaluated. Among such projects duct, between specified production acknowledging the work and progress we can highlight the quantification, sites and the Colombian Pacific area made on transborder fuel exchange of Orinoco Oil Belt reserves. in order to facilitate exports from a policies, the gas interconnection port, with the idea of reaching Asian project, and the Colombian- Julio De Vido, Argentine Minister markets. This project shall also include Venezuelan oil pipeline or poly-duct. of Federal Planning, Investment fuel upgrading plants in Colombia”. and Services, stated that joint Gas pipeline construction projects “shall be developed in the works to begin in 006 Orinoco Oil Belt and offshore and inland in Argentina, under a sort of The Minister and PDVSA President exchange activity, for both national explained “due to the investment companies shall participate”. required, we have decided that the gas pipeline shall be built and Both governments also created an operated by Petróleos de Venezuela” organizing committee of the investments adding that, based on that decision, round to be held in Buenos Aires. engineering and work start-up activities have been scheduled for Open dialogue with Colombia the first six months of 2006. Venezuela and Colombia are Ramírez also pointed out that project structuring their integration, stated completion has been set for within the President Chávez after signing the next 24 months. Likewise, resources Punto Fijo Declaration and the Joint to build this infrastructure where Presidents Uribe and Chávez, reaffirm the Declaration by Venezuela and Colombia Ecopetrol, the Colombian oil company, integration will of Colombia and Venezuela. in December 2005 in Paraguaná shall also be involved have been Refining Centre, State of Falcón. provisioned in PDVSA’s budget and In fact, we are currently contemplating the 2006-2030 Oil Sowing Plan. President Chávez described the to include a value added option summit with Álvaro Uribe, the through intermediate extra heavy Approximate cost of the project Colombian President, as “a meeting and heavy crude oil processing adds up to approximately 230 million to restructure integration”. at a given point along the oil dollars and the gas pipeline corridor pipeline in Colombian territory. will go from Puerto de Ballena, in “Beyond trends of thought, beyond Colombia to the West Coast of the economic fluctuations, beyond According to the document signed Maracaibo Lake, in Venezuela. circumstantial events, we keep by both Presidents, the work meeting on, making progress despite ever changing dynamics”, he said. Aruba As the Venezuelan head of State Caribbean Sea said, “the gas pipeline is an Paraguaná Guajira Península international project that will create Península jobs and works for regional (Falcón) Venezuela’s Ballena Gulf CRP development in the short term”. Riohacha Punta Cardón Likewise, with regard to energy La Guajira Mitare integration and solidarity among Urumaco people from different countries, the Colombia Venezuelan head of government Falcón Maracaibo stated “our country is willing to Cabimas extend the Petrocaribe mechanism Zulia to Colombia, as part of the Bolivarian Venezuela Alternative for America (ALBA)”. Álvaro Uribe, the Colombian President, stated that the meeting reiterated The gas-pipeline between Venezuela and Colombia is part of the PDVSA Oil Sowing Plan. Contact with the New PDVSA • January 006 Contact Contact with the New with the New PDVSA PDVSA PETROLEUM SOWING » Presidents Lula and Chávez held the ground breaking ceremony Pernambuco Refinery makes the South-South integration come true This project is part of a regional cooperation and integration strategy based on complementarity, as well as on fair, democratic, and sovereign use of energy resources. Operations start-up has From left to right: Hugo Chávez and Lula da Silva, Presidents of Venezuela and Brazil respectively, during the cornerstone placement of José Ignacio Abreu e Lima Refinery, in Pernambuco. With them, been foreseen for 2011, are Jose Sergio Gabrielli, Petrobras President, Jarbas Vasconcelos, Pernambuco state governor and Rafael Ramírez, Energy and Petroleum Minister of Venezuela. with a 200 thousand barrel/day capacity Rafael Ramírez, Venezuelan Minister PDVSA and Petrobras anticipate a of Energy and Petroleum and PDVSA joint investment ranging between President; Vilma Roussef, head of the 2.5 and 3 billion dollars, and 50% Civil House, and Jose Sergio Gabrielli, shareholding for each company. Petrobras President, were also present The project’s main objective is to n a historical event focused on among other authorities from both address the increasing demand for Ienergy integration of all South countries. New facilities should be in byproducts in the Northeastern region American countries, Presidents operation by 2011 with a 200 thousand and to enable it to be self-supplied. Hugo Chávez, Bolivarian Republic of oil barrel/day (MBD) capacity, including Venezuela, and Luiz Inácio Lula da 100 thousand barrels from a project The “Abreu e Lima” refinery, under the Silva, Federative Republic of Brazil, in the Venezuelan Orinoco Oil Belt, framework of Petrosur as a mechanism held the cornerstone-laying ceremony and 100 thousand barrels from the for energy integration of the South has of the “Jose Ignacio Abreu e Lima” Campus basin production, in Brazil. been designed to process heavy crude refinery to be jointly built by Petróleos oils from both countries, —which have de Venezuela, S.A. (PDVSA) and Brazil Northeastern region huge reserves of this oil— and shall Petróleo Brasileiro S.A. (Petrobras) at will be self-supplied be focused on maximizing naphtha, the Suape Industrial Port Complex, jet, diesel and liquefied petroleum in the State of Pernambuco, Brazil. gas (LPG) production, while reducing exports from Brazil, mainly of the This project is part of a regional last two fuels mentioned above. cooperation and integration strategy based on complementarity, as 006-00 Petroleum Sowing well as on a fair, democratic, and sovereign use of energy resources.