Bolivarian Republic of Venezuela Contact Caracas, August 2006 • # 7 with the New PDVSA A Newsletter about Venezuela’s National Oil Industry Transcaribbean Gas Pipeline Page 10 takes off 4 6 8 12 Petrocaribe gains Venezuela and Bolivia create New era in relations with Energy integration under strength Petroandina Panama Mercosur Cutting-edge PDVSA is New technology Latin America’s investors increases second largest captivated at eastern company OTC production 19 15 16 Contact Contact with the New with the New PDVSA PDVSA THE PLAN foR SOWING THE OIL » With PDVSA contributions Mass transport systems in Venezuela proceed full-speed ahead or a large city like Caracas, the The startup of major infrastructure projects is F inauguration of a new line in its subway system is a solution that a palpable example of the investments carried reflects a better quality of life for its inhabitants, who live stressful lives and out to improve quality of life for Venezuelans, for whom time is a vital resource in dealing with their daily duties. made possible by the sale of oil The Bolivarian government, through the New PDVSA, brings to fruition projects that benefit Venezuelans. The revenue that former governments Development Fund (Fonden), which Caracas subway system (Metro) at seldom invested in social development. received a contribution of $290 million present has four lines that daily, and in from Petróleos de Venezuela (PDVSA). a few minutes, transport hundreds of Investment by New PDVSA thousands of passengers to their various This is a case of harvesting what the destinations in the city. The recent Line 4 of the revolution sowed: the Sowing the Oil inauguration of Line 4 is a palpable Metro required Plan. “I would like to invite all of you to example of the investments carried out an investment keep on sowing”, urged Hugo Chávez, to improve quality of life for Venezuelans, of $860 President of the Bolivarian Republic made possible by the sale of oil, a million, funds supplied by the National of Venezuela at the inauguration Contact with the New PDVSA • August 006 Contact Contact with the New with the New PDVSA PDVSA ceremony of the new branch which, together with the three existing lines, now has more than 39 stations. Major transport systems “Formerly, PDVSA had to hand over all of its dollar earnings to the Central Bank of Venezuela, which and endorsed the technology located at La Rinconada, in handled it though procedures that being employed, stating their southwest Caracas. benefitted the rich”, Chávez said. intention to cooperate in this project which will benefit the Fonden today has $15,560 million inhabitants of one of the most earmarked for investment in 88 projects important industrial cities in with a major social impact in the areas the center of the country. of infrastructure and housing, among Los Teques Metro (State of others. PDVSA weekly adds $120 Miranda). It will link Caracas million to the Fund; which is to say, with the State capital. It increases it by $480 million per month. will benefit the 500,000 Central Region Railway inhabitants of the Altos System, Puerto Cabello -La Mirandinos. Inauguration of More than 60,000 passengers Encrucijada section. It will the first stage of Line 1 is establish a rail corridor in the will use the new line planned for the last quarter of 2006. center of the country. The The Line Maracaibo Metro (State of project will benefit some 3.5 4 sector Zulia). It will have a total of 4 million inhabitants inaugurated is lines, with 61 kilometers of 5.8 kilometers track and some 75 stations. long, and has The inauguration of the four stations: first line is expected to take Teatros, place at the end of 2006. Nuevo Circo, The Maracaibo Metro is a Parque project of great importance Central Valencia Metro (State of for the west of the country and Zumano Rental. It will provide Carabobo). Work on the and, above all for Zulia, an transport for the more than 360,000 first stage of the Valencia eminently oil-producing State. Line 1 Trolleybus (State of inhabitants who move around the Metro’s Line 1 advances Mérida). A surface public parishes in the west of the city. speedily; by last June 96% Caracas-Tuy Medio Railway, transport system that operates of the civil works had been Stages I & 2. The Caracas- on electricity. The monthly The passengers will be able to completed. The inauguration Cúa link, which represents volume of users estimated do the complete trip in 8 minutes, of this stage is expected to the first stage of the Central for this system is 3.5 million being transported comfortably in take place in the last quarter Region Railway System, people, thereby having a a French built infrastructure using of 2006. Directors of Spain’s connects Caracas with the Tuy positive impact on one of the cutting-edge technology. The Line 4 Madrid Metro visited the Valleys (State of Miranda). States with the greatest tourist facilities have been designed for use Valencia Metro’s facilities This stage’s point of origin is attractions in the country. by the physically impaired, who can make use of ramps and elevators especially designed for them. required will go a long way to reduce In this sense he referred to the status the pressure on roads used daily by of the subways at Valencia, State Sowing the Oil people who work in Caracas and of Carabobo, and Maracaibo, State have their homes outside the city. of Zulia, which have progressed The income generated by the sale of 96% and 67%, respectively. oil will continue to be invested in the Without exclusions Nation’s development. A second stretch On this point, President Chávez pointed for Line 3 is to be inaugurated at the “This is an infrastructure built for out that “it is not only the case of end of the year. With a 5 kilometer society as a whole, and not for a Caracas; it is a question of articulating length, the extension links El Valle in given sector of it. This is social the whole country, bringing it together Caracas with Los Teques, in the State infrastructure, infrastructure for the and offering our people progress and an of Miranda. The $850 million investment common good”, the President said. orderly development in their cities”. Contact with the New PDVSA • August 006 Contact Contact with the New with the New PDVSA PDVSA CARIBBEAN INTEGRATION » Consolidating energy security Petrocaribe strengthened Venezuelan Energy and Petroleum minister, Rafael Ramírez, and Phillip Paulwell, his Jamaican opposite number, signed agreements that strengthen Petrocaribe Petrocaribe ensures that profits from these activities directly benefit the people. Towards this end, the ALBA Caribe Fund was created with a $50 million initial deposit made by Venezuela, and to which each country will contribute the savings generated by the financing of their oil invoices. This makes Petrocaribe one of the geopolitical initiatives with highest impact ever proposed in the ne year after the signing of and in bringing about infrastructure Caribbean, “which is a vital region O the Petrocaribe agreement by projects, such as the construction from the geopolitical point of view, Venezuela, Antigua and Barbuda, of refineries, storage tanks and an area that Venezuela never took Belize, Cuba, Dominica, Grenada, the marine facilities required. into consideration, and that for more Guyana, Jamaica, Dominican than 70 years was in the hands of the Republic, St. Kitts and Nevi, and St. Energy sovereignty transnational companies”, as stated Vincent and The Grenadines, the in the Caribbean by Energy and Petroleum minister and accord has made significant progress. PDVSA president Rafael Ramírez. These achievements initiate a phase Petróleos de Venezuela, through its of change in these countries, where Petrocaribe reaches Central PDV Caribe subsidiary, has advanced the supplies of energy have been America and Haiti in the constitution of mixed companies, dominated by the transnational oil Despite the fact that they are not in the signing of supply contracts, companies and private intermediaries. members of Petrocaribe, local Progress in the Caribbean ANTIGUA & BARBUDA Petroleum and Energy assets; one with a received on 07-06-2006. distribution facility has The Antigua and Limited 45%. capacity of 700 cubic The mixed company begun. Barbuda state-owned The recent discovery meters of LPG and PDV Caribe Dominica company PDV CARIBE of oil in Belize gave rise 20,000 barrels of clean Ltd. was founded on 26- GRENADA Antigua & Barbuda Ltd., to the idea of building products capacity, and 06-2006. PDVSA Caribe Supply contract signed was founded. a small-scale refinery the other one for 40,000 holds 55% of the shares on 16-06-2006. (10,000 bpd). barrels of crude. and Dominica Petroleum Addendum to the supply BELIZE Reactivation of the Company Ltd 45%. contract on LPG, Avgas, 15,000 barrels of gas oil CUBA Cienfuegos refinery. The construction of a Jet A1 and fuel oil were shipped at the end The mixed company Basic engineering being refinery is foreseen. signed. of 2005. PDV-CUPET was set up developed since May The land would be PetroCaribe Grenada With a $2 million on 10-04-2006, with 2006. contributed by the Ltd. founded. capital, on 08-06-2006 PDVSA Cuba holding government of Dominica the mixed company 51% of the shares and DOMINICA as an asset of the GUYANA Alba Petrocaribe Belize CUPET 49%. On 02-11-2005 PDV mixed company. The State-owned Guyana Energy Limited was TransAlba, a shipping Caribe shipped a tank for topographical studies Energy Agency (GEA) founded, with PDV company, was created. Diesel oil storage. have been completed, designated. Caribe holding 55% of TransAlba has two First shipment of 1,200 and earth movement the shares and Belize tankers among its barrels of asphalt for the tank farm and Contact with the New PDVSA • August 006 Contact Contact with the New with the New PDVSA PDVSA governments of El Salvador and the region geopolitically, extend the Nicaragua created the mixed reach of the integration principles companies ALBA Petróleos of El and diversify its customer portfolio by Salvador and ALBA Petróleos of marketing its products in the Caribbean Nicaragua (Albanic), respectively, region, which has a consumption of to benefit from financing terms that more than 400,000 bpd.