June 29, 2008 at 8:08 pm #3554
PDVSA head presents aggressive growth plan at LAPS 2008 – Venezuela
Published: Friday, June 20, 2008 12:38 (GMT -0400) By Nathan Crooks,
Venezuelan state oil company PDVSA president Rafael Ramírez presented an aggressive growth plan during a speech at the LAPS 2008 oil conference in Maracaibo.
Venezuela’s Siembra Petrolera plan to increase production is progressing as planned and the country’s production will hit 3.6Mb/d in 2009 and 4.8Mb/d in 2013, according to Ramírez. “These aren’t estimations,” said Ramirez, who also is the country’s oil and energy minister. “These are exact figures.”
PDVSA, meanwhile, will invest US$130mn through 2013 in wide-ranging projects. The company has 88 projects planned for 2008, when it will spend US$15.7bn. The official presented various plans to expand the country’s natural gas pipeline infrastructure, develop LNG plants, build new crude upgraders in the Orinoco heavy crude belt, form new JVs with private and state companies and increase offshore drilling.
Specifically, the company will spend US$19.7bn on three new heavy crude upgraders to come online in the Carabobo block in the Orinoco and US$13.1bn on two new upgraders on the Junín block. The Carabobo upgrades are set to begin operations in 2013, 2014 and 2017. The Junín upgraders will come online in 2014 and 2017, Ramírez said. The upgraders will allow production from the Orinoco belt to hit 2.9Mb/d by 2021.
Ramírez made a specific distinction when he invited private “national” firms to participate in the new investments required to meet the company’s production goals. “National firms are welcome to invest in the projects, but if they don’t, PDVSA will do it without them,” he added.
Ramírez called on Venezuelan firms to end the country’s dependence on imported goods used to service the country’s hydrocarbons industry. Venezuela currently imports 60% of the goods and services used by the industry.
“We want to reduce the rate of imported goods and services to 26% by 2015,” Ramírez said. “The government is willing to work with private firms to develop Venezuela’s domestic oil services industry.”
June 29, 2008 at 8:15 pm #6754
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.
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