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RE: PDVSA LAPS growth Plan 2008 shows 5 new Upgraders online by 2009 – 2017

Home Forums Coking News: DCU, Upgrader 3.Upgrader (registered users only) PDVSA LAPS growth Plan 2008 shows 5 new Upgraders online by 2009 – 2017 RE: PDVSA LAPS growth Plan 2008 shows 5 new Upgraders online by 2009 – 2017

#6754

Charles Randall
Participant

Here is update on PDVSA’s stated plan to bring on-line 5 new Upgraders: 3 in Carabobo block & 2 in Junin block of the Orinoco. The Goal is to increase crude production to 3.6 MMBD in 2009 & reach 4.8 MMBD by 2013 (the Orinoco/upgrader portion of production is to grow from original 600 MBD to 2.9 MMBD by 2021).
< Aggressive considering the last balance on PDVSA crude production in 2006 showed it down by 380 MBD over previous 3 years from its “Oil Sowing Plan” and down by over 680 MBD from its 2007 budget (where actual production was down 173 MBD versus 2006’s low of 3.25 MMBD. (see upgrader Jan 2008 news)> 
The planned JV with Petrobras for half crude supply into Brazils Northern Grassroots Refinery (see Feb 2008 upgrader news) accounts for one of the Carabbo upgraders and the recent deal with Chinese for crude to make Orimulsion (which also includes 13 new platforms & 18 new tankers) account for the 2 Junin upgraders in 2014 & 2017 to meet the 500 MBD which expands to 1 MMBD for the Chinese investment (see Nov 2007 Upgrader news item).
I would assume the other two Carabobo upgraders would be for crude supply into Cuba and Argentina & other Latin America JV projects that PDVSA has announced. The Carabobo Blocks 1, 2 & 3 are expected to require $8.5B investment each (PDVSA will require 60% stake in each as it now has in the “Nationalized” previous 4 upgraders). 
It will be interesting to see which “National Oil” Companies participate – so far ENI & PDVSA had announced a $10B investment earlier this year.
Regards

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