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Contact with the New PDVSA Bolivarian Republic of Venezuela Caracas, March 2006 • # 5 Contact with the New PDVSA A Newsletter about Venezuela’s National Oil Industry Model for Mixed Companies approved The Venezuelan page National Assembly 8 unanimously approved the contract model for the creation and operation of this 4 6 20 business scheme, as well as its Inauguration of Mission Science White Dove award commercial office scientific and technological for Venezuela charter and statutes in Bolivia independence Puerto La Cruz Great and El Palito Caripito: Southern establish refinery for social Gasline HDHPLUS® development 16 Development for 2 Latin America 10 Contact Contact with the New with the New PDVSA PDVSA INTEGRATION » New Venezuela, Argentina and Brazil presidential get-together The Great Southern Gasline to promote Latin American social development Together, Venezuela, Argentina and Brazil embark on the largest energy project in Latin America. The essential idea of this huge undertaking but also an important link within the The starting date of the project, as well is the creation of a Latin regional integration vision, because as its initial investment, will be decided it will represent the crystallization of at the next meeting of the Heads of American energy source an undertaking which will be a worthy State of the three main nations involved: example for the start of other joint Argentina, Brazil and Venezuela. that boosts the social projects, framed within the concepts of complementarity and solidarity of The most recent presidential meeting development of its people peoples. took place last 19th January at the Granja del Toro, Brazil’s official It will, at the same time, be a fount of presidential retreat , where the he main objective behind the resources to power the development presidents of the three countries Tconstruction of the Great Southern of the Latin American peoples, who will analyzed various regional issues, chief Gasline is the boost it will provide see in the Great Southern Gasline an among them being the Great Southern to the promotion of development indispensable hubs for social progress Gasline’s interconnections. poles throughout its length, as has since, in addition to the operational been pointed out by the authorities activities generated in the almost On this occasion, Hugo Chávez, promoting this ambitious project. seven years it will take to build, it will President of the Bolivarian Republic enable the growth of other energy- of Venezuela, said that the gasline The gasline will not only become an related undertakings, such as industry, is “an integrating project because a energy source for Latin America, manufacture and services. dynamic of social, economic, housing, Contact with the New PDVSA • March 006 Contact Contact with the New with the New PDVSA PDVSA roads, health and development BACKGROUND » Gasline’s Multilateral Technical Committee hub plans revolve around it”. In this sense, he considered that “it is not a case of making an 8,000 kilometer pipe to take gas, a source of wealth and development, along villages full of poverty and misery. It becomes necessary to add integral projects to it; we have to take gas and leave some of it it along the way in the form of industrial development”. Gas: Clean and cheap energy Technical commissions from Argentina, Brazil, and Venezuela are working on Phase I of the project. The Venezuelan Head of State considered that “gas represents one of With the aim of making Venezuela Gas Interconnection The joint commission is made the strategic lines of future development progress in the technical has held several meetings in up by a Ministerial that will enable the generation of clean, aspects of the South American the main cities of these Coordination and Decision cheap and accessible energy for all gasline, the Multilateral countries. Committee, a high-level peoples”. Working Committee for the coordinating committee, and Argentina, Brazil The first meeting took place at work teams for marketing, In this sense, Rafael and PDVSA headquarters in resources, rate design, Ramírez, minister of Caracas. The delegations regulatory, legal and fiscal Energy and Petroleum involved went over the aspects, planning and and president proposed infrastructure, engineering, permits, of Petróleos de agreeing that it was environmental, social and Venezuela - who perfectly viable. political impact, technology, was a member research and financing of the delegation options. which accompanied the Head of State on his visit to Brasilia- stated that once the distribution of the gas At the session which took place in transported by the Great Southern Brasilia, the Heads of State of the three Gasline had been initiated, a project According countries reviewed the agreements for massive gasoline consumption to minister arrived at to date, such as the route, the substitution, could be implemented. Ramírez’s volumes involved, execution times, work estimates, the schedules, the regulatory regime, the region’s natural gas engineering, as well as the structuring of potential could reach 300 the various teams that will evaluate the trillion cubic feet, sufficient fiscal and financial aspects. to cover the sub-continent’s needs. During the Brasilia presidential meeting, Venezuela and Argentina signed a letter Ramírez disclosed that the gasline of intent for the purpose of initiating would begin in Puerto Ordaz, in the geological studies and information southern Venezuela, continuing interchange both for the Junín field in to Manaos in northern Brazil, Venezuela’s Orinoco Oil Belt and the San crossing the Brazilian states of Fortaleza, Jorge Gulf in Argentina. The objective Salvador, Brasilia and Pernambuco, is to evaluate the available crude the objective being to transport gas reserves and determine the possibilities directly from the offshore developments for undertaking a joint development by in eastern Venezuela to the Pernambuco Venezuela’s PDVSA and Argentina’s refinery. ENARSA, a project which could eventually include Brazil’s Petrobras. Venezuela expects more South American countries will join the project. Contact with the New PDVSA • March 006 Contact Contact with the New with the New PDVSA PDVSA INTEGRATION » Venezuela signs two energy cooperation agreements with Bolivia Integration for La Paz vo Morales, President of the PDVSA is to supply 200,000 barrels per month of crude, EBolivian Republic signed his first international agreements during diesel and liquefied petroleum gas (LPG) to Bolivia, in his first day in office. These were two energy cooperation agreements he exchange for Bolivian agricultural products signed together with Hugo Chávez, President of the Bolivarian Republic of Venezuela, who said that the event was President Chávez stated that this new stage of relations the beginning of “new times in relations seeking the integration of our peoples”. which links both nations is based on the integration of Through the Caracas Energy brother nations Cooperation Agreement (in spanish Acuerdo de Cooperación Energética de Caracas, ACEC), Venezuela agreed to supply Bolivia, through Petróleos payment. “Venezuela stands ready to promotion of areas such as oil, gas, de Venezuela (PDVSA), with 200,000 begin these cooperation agreements” electricity and petrochemicals, which barrels per month of crude, diesel fuel President Chávez stated. will contribute to the consolidation of the and liquefied petroleum gas (LPG), with Petrosur and Petroamérica initiatives. the aim of meeting the Andean country’s Petroamérica becomes total internal fuel demand. consolidated This technical and operational agreement will serve to promote the The ACEC contemplates a The Venezuelan-Bolivian energy sector agreements framed within the initiatives compensation mechanism to settle the cooperation agreement aims to initiate a promoted by the Bolivarian Government. energy supply bill that will enable Bolivia broad and sustained integration process Venezuela has the experience to advise to exchange products or services as that will enable the development and Bolivia on the internal use of gas and Contact with the New PDVSA • March 006 Contact Contact with the New with the New PDVSA PDVSA thereby make a better use of its primary UNION OF PEOPLES » Cooperation and complementation principles energy matrix, in terms of maximizing the benefits of the resource for all Bolivians. Similarly, Venezuela committed itself to help in the process of upgrading Bolivia’s state-owned company Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) and to set up PDVSA- YPFB joint ventures, as well as providing technical assistance for project evaluation and development, technology supply and cooperation in the training of specialized human resources. VENEZUELA Venezuela-Bolivia Agreements aim at the complementarity of the peoples. Energy Map development bank, inaugurated presidents of Bolivia and Proved Gas Reserves PDVSA Bolivia’s commercial Venezuela, Ramírez said that 150 TCF office, located in a building once the working teams had Probable Gas Reserves which will also house BANDES become consolidated, “we expect 100 TCF and Industrial Bank of Venezuela to develop an agenda to proceed Proved Oil Reserves (BIV) offices. with the issues contemplated in 80 MMMB During Evo Morales’ these agreements”. Probable Oil Reserves inauguration, President 235 MMMB Chávez spoke of the need to Productive interchange Gas Production add Bolivia to Latin America’s 6.300 MMCFD biggest energy project: the On the agreement, minister Natural Gasoline and Oil/Condensate
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