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RE: PdV plans $12.9 B Capex Ref Ventures – Asian Partners

Home Forums Coking News: DCU, Upgrader 3.Upgrader (registered users only) China pulls Out Canada OS & into Venezuela investments RE: PdV plans $12.9 B Capex Ref Ventures – Asian Partners


Charles Randall

Argus: PdV plans $12.89bn capex for refinery ventures
Caracas, 5 August 2011 (Argus) – Venezuelan state-owned oil company PdV plans to make $12.9bn in capital expenditures (capex) over the coming nine years in refinery joint ventures with state-owned oil companies in Cuba and China.
PdV’s audited annual report for 2010 said that its planned capex of $6.4bn in Cuba will more than quadruple the Caribbean island nation’s crude oil refining capacity to 400,000 b/d by the end of 2015, up from 87,000 b/d now.
State-owned Cupet of Cuba will own 51pc of the ventures, with PdV holding the rest. But China’s state-controlled CNPC also will participate as a minority stakeholder, according to the annual report.
The Cienfuegos refinery’s crude oil processing capacity will increase to 150,000 b/d from 65,000 b/d currently by the end of 2014. PdV estimates its share of the required capex at almost $2.39bn.
In the same period, crude oil processing capacity at the Hermanos Diaz refinery in Santiago de Cuba will be increased to 50,000 b/d from 22,000 b/d, PdV’s annual report says. PdV’s share of the capex is $314mn.
PdV and Cupet also plan to build a new refinery in Matanzas with a crude oil processing capacity of 150,000 b/d, PdV’s annual report said. The facility would come on stream by 2016 and cost PdV more than $3.75bn.
PdV also plans to spend $6.5bn in China from 2011-2019 to build three refineries with a combined crude oil processing capacity of 800,000 b/d. PdV will hold 40 pc stakes in the planned Chinese refineries, which are to be integrated with 600,000 b/d worth of PdV’s Orinoco heavy oil production ventures in Venezuela with state-controlled CNPC and Sinopec.
PdV’s planned refineries in China include the 400,000 b/d Nanhai refinery in Jieyang, which is expected to start operations in 2014. PdV’s share of projected capex is $3.3bn.
The 200,000 b/d Weihai refinery is scheduled to start operations in 2016, and the 200,000 b/d Shanghai refinery is slated to come on line in 2019, with PdV’s share of capex coming to $1.6bn for each facility.
PdV signed JV agreements in 2010 with CNPC and Sinopec to develop 600,000 b/d of Orinoco extra-heavy crude production capacity by 2017 in the oil belt’s Junin 4 and Junin 8 blocks.
The PdV-CNPC venture PetroUrica plans to produce 400,000 b/d of Merey 16 API blended crude for export to the Jieyang refinery in China’s Guandong province. PdV has estimated total capex for PetroUrica, of which it owns 60pc, at more than $20bn and expects 50,000 b/d of production to begin by 2013, with peak capacity being reached by 2016.
PdV and Sinopec are negotiating terms of a venture to develop initial capacity of 200,000 b/d of extra-heavy crude production in the Orinoco belt’s Junin 8 block.
Sinopec also holds a 30pc stake in PdV’s planned Cabruta refinery, which is slated to start upgrading 221,000 b/d of extra-heavy crude by 2017. PdV estimates at total capex to build the Cabruta refinery’s upgrader at $8.3bn.
Second- and third-stage expansions to make Cabruta an integrated upgrader, refinery and petrochemicals complex will be completed by 2022 and 2027, respectively, for additional projected total capex of more than $6bn.

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