PDVSA is Venezuela's state-owned oil and natural gas company. The document discusses PDVSA's business plan for 2000-2009. It summarizes that PDVSA has large oil and gas reserves, aims to increase production capacity to 5.8 million barrels per day by focusing on exploration and production through partnerships and operating agreements. The plan also involves investments of $50-55 billion over the period, with 42% of financing coming from PDVSA, to develop refining and natural gas resources and attract private sector participation.
2. PDVSA
Overview
• PDVSA: a Global Energy Corporation
• Reserves (Oil and Gas)
• Production Capacity
• Refining Capacity
• Technology
• Green Performance
• Business Plan 2000-2009
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3. PDVSA
A Global Energy Corporation - 1999
RESERVES
OIL 77 Bn BLS REFINING CAPACITY
GAS 147 TCF 3.3 MMBD
PRODUCTION
PETROCHEMICAL PROD.
CAPACITY
4.5 MMTON/YEAR
3.6 MMBD
SALES COAL PROD.
Bn $ 32.6 6.4 MM TON/YEAR
MARKETING ORIMULSION PROD.
4.5 MMBD 4.8 MM TON/YEAR
MMBD= Million Barrels / Day, MM ton= Million Tons
TCF= Trillion Cubic Feet PC2000_10 BUSINESS PLAN ./
4. PDVSA Oil
World Proven Reserves
World
Reserves 1053 Bn BOE 65
R/P 40 Years
24
8
21
37 Ex- URSS
9.6 674
Western 81
Europe
North
America
ME 15
Venezuela 43
43% of the Africa Asia
Americas 137
37 Latin
America
27
75 Australia
Source: BP Amoco 99 VENEZUELA: WORLD´s 6th LARGEST PC2000_10 BUSINESS PLAN ./
5. PDVSA
Proven Reserves + Orinoco Belt
ORINOCO BELT, THE WORLD
LARGEST BITUMEN RESERVOIR
Billion Barrels MACHETE
MACHETE ZUATA HAMACA
C. NEGRO
o
n o c
O r i TOTAL
R í o
262 AVAILABLE RESOURCES 489 557 87 227 1360
RECOVERABLE RESOURCES 74 95 18 85 272
PRODUCED AT A RATE OF 10 MBD, RESOURCES WOULD LAST 50 YEARS
113 98 97 90
77
Saudi Arabia Irak UAE Kuwait Iran Venezuela
Source : BP Amoco1999 PC2000_10 BUSINESS PLAN ./
6. PDVSA
Largest Liquid Hydrocarbon Accumulation
Billion Barrels
309
262
BITUMEN
113 98 97 90
77
Saudi Arabia Irak UAE Kuwait Iran Venezuela
INCLUDING ORINOCO BELT, LARGEST LIQUID
HYDROCARBON ACCUMULATION
Source BP Amoco 1999 PC2000_10 BUSINESS PLAN ./
7. PDVSA Oil
Largest Producers: 1999 Production Capacity
MMBD
11
9,1
7,5
6,6
3,6 3,6 3,2
SAUDI USA RUSSIA NORTH MEXICO VENEZUELA CHINA
ARABIA SEA
Source: EIA
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8. PDVSA Refining Capacity
World Leading Corporations
MMBD
6,5
4,0
3,3 3,3 3,1
EXXON/ ROYAL BP / PDVSA CHEVRON/
MOBIL DUTCH/SHELL AMOCO TEXACO
Source PIW. Dic - 1999
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10. PDVSA Refining Capacity
Venezuela
USA Capacity (*) : 1116 ThBD European Capacity: 252 ThBD
Lemont
167 Nynas 50% (72)
Sweden(2 ref./Belgium(1 ref.)/ United Kingdom 2ref.)
Paulsboro 84 36
Sweeny (*)
165
Ruhr Oel 50% (432)
Savannah
Chalmette 50% Germany (4 Ref.)
28
(184) 216
LCRC 41.25% (265)
92 110
Lake Charles Paraguaná Refining
320 Complex 940 Capacity (MMBD)
Corpus Christi Venezuela 1.3
150 St. Croix 50% International 2.0
ISLA 335 (545)
273
Bajo Grande El Palito Pto.. La Cruz
15 130 200
Caribbean Capacity 608 ThBD
San Roque
(*) 50 % share in deep conversion unit
5 PC2000_10 BUSINESS PLAN ./ 1
11. PDVSA Refining Capacity
European Operations
TOTAL RUHR/NYNÄS: 504 Th BD
PDVSA PARTICIPATION : 252 Th BD
SUPPLY AGREEMENTS: 272 Th BD
Norway Sweden
Nynashamn
Dundee
UK Götenborg
Ireland
Eastham Wilhelnashaven
Rotterdam
Amberes Schwedt
Gelsenkirchen
Karlsruhe
Neustadt
Marselle Trieste
International downstream integration allows market access
International downstream integration allows market access
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12. PDVSA Refining Capacity
CITGO - PDVMR
REFINING CAPACITY (MMBD) TOTAL/PDVSA: 1363/1116
TERMINALS: 59
SERVICE STATIONS: 15.079
STORAGE CAPACITY (MILLION BLS): 24
Lemont
Paulsboro
CITGO
Savannah
Lake
Charles
Lyondell
Corpus Christi
One of the largest retail networks
One of the largest retail networks PC2000_10 BUSINESS PLAN ./ 1
14. PDVSA Natural Gas
Proven Reserves
World 2003
Reserves 5170 TCF
R/P 65 Years 19
184 88
Western Ex- URSS
North Europe 274
America
231 9 1750
ME 41
Venezuela Africa Asia
28% of the 360
Americas 66 Latin 101
America
Australia
283
361
Source: BP/AMOCO 00 VENEZUELA: WORLD’s 8 th LARGEST PC2000_10 BUSINESS PLAN ./ 1
15. PDVSA Natural Gas
Venezuela’s Gas Reserves / 1999
POSSIBLE 133 ASSOCIATED
43
19 % 91%
64 %
17 % 9%
38 146 13
PROBABLE PROVEN NON- ASSOCIATED
Most of the reserves largely associated to oil
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16. PDVSA Technology
PDVSA Intevep as high tech product provider
HHC® HDH+®
ISAL® HOTLIFT™ AQUACONVERSION® ST-5®
MULTIGEL™ GOV10/20®
BIORIZE® CDInterol® INTEBIOS®
H2OIL™ INT-SORB™ ORIMULSION®
ULTRACLEAN™ WellTECH™
Creating value in all business activities
Creating value to Venezuelan nation
Win to win relationship with partners
ULTRAMIX® INTOIL® THIXOGAS®
DISOL® BIODOIL® SULTRAP®
ISIS-INT® INPETUS™
ORIMATITA®
GREENOIL ®
LITEDEM® LITECEM™
DETECTOIL™
INT-FCC-1® EVAEMP™ CARBOLIG® SEDLA®
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17. PDVSA Green Performance
CERTIFIED
SUPPLIER ENVIRONMENTAL
OF CLEAN MANAGEMENT
PRODUCTS SYSTEMS
COMMITTED
AND ELIMINATION OF
RESPONSIBLE LIABILITIES
EMPLOYEES
DEVELOPMENT AND CONTRIBUTION TO
APPLICATION OF ACCOUNTABILITY MEET COMMUNITY
TECHNOLOGY TO THROUGH PERFORMANCE NEEDS ON
MINIMIZE RISKS INDICATORS AND ENVIRONMENT
PREESTABLISHED GOALS
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18. PDVSA Business Plan 2000-2009
Corporate Strategy
• Focus on E&P, R&M with own
resources
- Competitive costs
- Effective asset utilization
• Promote maximum participation of
private sector in:
- Natural gas
PDVSA - Chemicals and petrochemicals
- Refinery streams derivatives
- Orimulsion
- Coal
• Best practices in Health, Safety &
Environment Protection.
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19. PDVSA Business Plan 2000-2009
Production Capacity
Th BD 5800
6000 Profit Sharing
Agreements
5000 Orinoco Oil Belt
3955
4000 Operating Agreements New Areas
Own Effort.
3000
2000
Own Effort
1000
0
00 02 04 06 08
PDVSA’s Business Plan considers a steady
growth in production capacity
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20. PDVSA Exploratory Areas
Oil (Million Barrels) / Gas (TCF)
CARIBBEAN SEA
13 61
7 22 150.000 Km2
10 47
60.000 Km 2
150.000 Km2
6 6
100.000 Km2
Significant opportunities to incorporate new oil
and gas reserves
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21. PDVSA Business Plan 2000-2009
Strategic Associations: heavy oil upgrading projects
Production Th BD
700
622 Investments 2000 - 2009:
600
500 HAMACA Partners
400
52%
300 SINCOR
158
200 CERRO NEGRO 32%
100
16%
PETROZUATA
0 PDVSA
2000 2 4 6 8 2010 Financing
Orinoco Oil Belt:
a succesful
development of huge
Reserves: 217 Bn BLs
extra-heavy oil reserves
(≈ 10-12° API)
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22. PDVSA Business Plan 2000-2009
Exploration and Production
Profit Sharing Operating
Agreements Agreements
Exploration 9% 22%
Own effort 8%
22%
Strategic
39% Associations
Production Own Effort
Investments 2000-2009: 36 - 38 Bn $
PDVSA’s Share : 55%
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23. PDVSA Business Plan 2000-2009
Refining
Operational
Continuity
37% Environment
13% & Safety
3%
47% Deep
Conversion
Product
Quality
Investments: 2,0 - 2,7 Bn $
Most investments are dedicated to environmental
related projects
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24. PDVSA Business Plan 2000-2009
Orimulsion®
30000 Th TY Volumetric Expectations
25000
20000 MODULE 3
15000 MODULE 2
10000
5000
EXISTING CAP.
0
99 01 03 05 07 09
Strategic Guidelines
First module wholly utilized - 6.5 MM T/year capacity
Second and third module to be developed mostly by
private investors ($1 Billion Approximately)
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25. PDVSA
Total Investments
PDVSA
Own Effort PDVSA equity in
Associations
38% 4%
Partners Share
24% 34%
Financing
Business %
• Exploration & Production 69
•Profit Sharing 13
•Orinoco Oil Belt Assoc. 14
•Operating Agreements 11
•PDVSA 31
Plan 2000-2009: • Refining 4
U.S.$ 50 - 55 Billion • Natural Gas 9
• Chemicals 15
PDVSA SHARE: 42% • Other sectors 3
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26. PDVSA
Summary
PDVSA´s Business Plan is based on:
Venezuela´s large resources endowment
Venezuela comparative and competitive
advantages
Strong financial fundamentals
Great opportunities for private investment
PC2000_10 BUSINESS PLAN ./ 2
Notas del editor
GOOD MORNNIG, LADIES AND GENTLEMEN THIS PRESENTATION THAT I HAVE FOR YOU TODAY IS ABOUT PETROLEOS DE VENEZUELA.
THIS PRESENTATION WILL COVER THE TOPICS THAT YOU SEE IN THE SLIDE BEGINNING WITH THE CHARACTERIZATION OF PDVSA THROUGH THE MAIN FIGURES THAT DESCRIBE OUR RESOURCES BASE, BOTH INBOUND AND OUTBOUND LOGISTIC INFRASTRUCTURE, AS WELL AS THE TECHNOLOGY AND ENVIRONMENTAL ASPECTS INCLUDED WITHIN THE FRAMEWORK OF OUR OPERATIONS AND FINALLY, A SUMMARY OF OUR BUSINESS PLAN FOR THE YEARS 2000 TO 2009.
PDVSA DEFINES ITSELF IN ITS MISION AS A GLOBAL ENERGY CORPORATION. THIS SLIDE SHOWS THE MAIN NUMBERS THAT DESCRIBE OUR OPERATIONS IN THE VALUE CHAIN THAT WE EXPLOIT AT YEAR END 1999. FROM THE VAST HIDROCARBON RESOURCES THAT ARE PRESENT WITHIN THE VENEZUELAN BORDER, WE ADDRESS THE MARKETS THAT ARE NATURAL TO US BECAUSE OF OUR GEOGRAPHICAL LOCATION AND OUR COMPETITIVE ADVANTAGE THE NUMBERS OF PROVEN RESERVES OF OIL&GAS, PRODUCTION CAPACITY, SALES, EXPORTS, REFINING CAPACITY, PETROCHEMICAL, COAL AND ORIMULSION PRODUCTION THAT YOU SEE IN THE SLIDE GIVE YOU AN IDEA OF THE HUGES DIMENSIONS OF OUR OPERATIONS AND MARKET ACTIVITY WITHIN THE GLOBAL BUSINESS OF PDVSA .
TO SUPPORT ITS GROWTH, PDVSA ACCESS ITS VAST RESOURCE BASE OF HYDROCARBONS IN VENEZUELA THAT, IN TERMS OF PROVEN RESERVES IS THE 6TH WORLD´S LARGEST, REPRESENTING 43% OF THE AMERICAS AND GEOGRAPHICALLY LOCATED NEAR THE MOST IMPORTANT MARKETS WITHIN THE ATLANTIC BASIN.
IT IS IMPORTANT TO HIGHLIGHT THAT IN THE FIGURES OF PROVEN RESERVES, VENEZUELA RANKS 6TH AMONG THE TOP 10 HOLDERS OF HYDROCARBONS RESERVES IN THE WORLD…...
…… .WITHOUT INCLUDING THE VAST RESOURCES OF BITUMEN THAT ARE LOCATED IN THE ORINOCO OIL BELT, WHICH IS THE LARGEST OF THOSE ACCUMULATIONS OF HYDROCARBONS. IN THIS REGARD, IT´S IMPORTANT TO MENTION THAT IF THOSE RESERVES ARE PRODUCED AT THE RATE OF 10 MILLION BARRELS A DAY, IT WOULD LAST FOR AT LEAST 50 YEARS.
DOING THE SAME COMPARISON, NOW IN TERMS OF THE PRODUCTION CAPACITY, VENEZUELA RANKS 6TH ALSO AMONG THE TOP 10 OIL PRODUCER COUNTRIES AS YOU SEE IN THE SLIDE...
…… AND, IN TERMS OF REFINING CAPACITY, PDVSA IS AMONG THE BIGGEST MAJOR OIL COMPANIES IN THE WORLD, AT THE SAME LEVEL OF BP/AMOCO AND CLOSE TO ROYAL DUCTCH/SHELL…...
HOWEVER, IF WE NOW CONSIDER THE REFINING CAPACITY OF THE NATIONAL OIL COMPANIES, PDVSA RANKS #1 AMONG THEM……..
… ...THAT CRUDE OIL PROCESSING CAPACITY IS BASED NOT ONLY IN VENEZUELA, BUT ALSO OVERSEAS WHERE 60% OF THAT CAPACITY IS LOCATED, MAINLY IN THE UNITED STATES WITH MORE THAN 1.1 MMBD, ABOUT 600 MBD IN THE CARIBBEAN SEA AND SOME 250 MBD IN EUROPE. IN THE U.S. MOST OF OUR OPERATIONS ARE CONTROLLED BY CITGO WHICH IS 100% OWNED BY PDVSA AND WE HAVE ALSO PRESENCE THROGH JOINT VENTURES WITH PHILLIPS, LYONDELL AND EXXON/MOBIL IN DIFFERENT REFINERIES. IN THE CARIBBEAN, WE ALSO HAVE AN IMPORTANT PRESENCE THROUGH A JOINT VENTURE WITH AMERADA HESS IN SAINT CROIX ISLAND AND A LEASED REFINERY IN CURAZAO.
…… IN EUROPE, WE HAVE JV´S WITH VEBA OIL AND FORTUM. IN GERMANY, THROUGH A COMPANY CALLED RURH OEL AND IN THE NORTH OF EUROPE THROUGH NYNAS WHICH HAS REFINERIES IN SWEDEN, UK AND HERE IN BELGIUM (AMBERES). THIS ALSO ALLOWS US TO INTEGRATE OUR VALUE CHAIN ALL THE WAY THROUGH THIS IMPORTANT MARKET.
IN THE UNITED STATES AS WELL, WE INTEGRATE OUR VALUE CHAIN ALL THE WAY THROUGH THE MARKET WITH OUR AFFILIATE COMPANY CITGO THAT GIVE US A STRATEGIC ACCESS TO OUR MOST IMPORTANT MARKET AT THE RETAILING LEVEL OF THE BUSINESS INCLUDING NOT ONLY WITH MORE TAHN 15.000 SERVICES STATIONS, WHICH IS ONE OF THE LARGEST IN THE UNITED STATES, BUT ALSO TERMINALS AND STORAGE CAPACITY TO HANDLE THE OUTBOUND LOGISTIC OF THE BUSINESS.
INCLUDED WITHIN THIS LOGISTIC IS THE VITAL ACCESS TO STORAGE CAPACITY IN THE CARIBBEAN, IN ORDER TO INSURE THE APPROPRIATE STRATEGIC ADDRESS OF THE NEEDS OF OUR CUSTOMERS LOCATED IN THE ATLANTIC BASIN. AS YOU SEE IN THE SLIDE, WE HAVE ACCESS TO STORAGE CAPACITY THAT AMOUNTS MORE THAN 50 MILLION BARRELS IN TERMINALS LOCATED FROM TRINIDAD TO THE BAHAMAS BY TWO MEANS: OWNERSHIP AND LEASING
OUR RESOURCE BASE INCLUDES ALSO SIGNIFICANT AMOUNTS OF NATURAL GAS (146 TCF) THAT ARE THE 28% OF THE AMERICAS AND RANKS VENEZUELA AS THE 8TH IN THE WORLD
HOWEVER MOST OF THE GAS RESERVES (91%) ARE LINKED TO OIL FIELDS, OR WHAT IS CALLED ASSOCIATED GAS. THE AVAILABILITY OF THOSE RESOURCES WILL DEPEND ON THE PRODUCTION OF OIL. THEREFORE OUR BUSINESS PLAN CONTEMPLATES FOR NON ASSOCIATED NATURAL GAS A VERY IMPORTANT EXPLORATION ACTIVITY AND DEVELOPMENT OF INFRASTRUCTURE WITH THE ACTIVE PARTICIPATION OF THE PRIVATE SECTOR (NOW ALLOWED IN THE LAW) AND, FROM THERE, THE DEVELOPMENT OF THE MID AND DOWN STREAM CHAIN OF THE BUSINESS TARGETING NOT ONLY THE INTERNAL GAS MARKET, BUT ALSO THE OVERSEAS MARKETS OF THE ATLANTIC BASIN.
IN ORDER TO EASE THE ACCESS TO THE APPROPRIATE TECHNOLOGY NEEDED TO DEVELOP EFFICIENTLY AND ECONOMICALLY OUR RESOURCE BASE THAT HAS BEEN ALREADY CHARACTERIZED IN THIS PRESENTATION, WE HAVE OUR OWN AFFILIATE OF R&D INTEVEP THAT THROUGH THE YEARS HAVE PROVIDED US WITH MORE THAN 700 PATENTS AND INVENTIONS APPLICABLE TO THE OIL INDUSTRY AND SOME OF THEM HAVE BEEN LICENCED TO OTHER COMPANIES.
AS A GLOBAL CORPORATION, WE ARE DEEPLY COMMITTED WITH THE ENVIRONMENT AND THE HIGHEST SAFETY STANDARDS IN MANY DIFFERENT WAYS: FIRST WE ARE AND WILL CONTINUE TO BE AN IMPORTANT SUPPLIER OF CLEAN PRODUCTS IN ALL OUR REFINERIES AND OUR ENVIRONMENTAL MANAGEMENT SYSTEMS ARE CERTIFIED. IN ADDITION WE DEDICATE AN IMPORTANT EFFORT TO DEVELOP AND APPLY TECHNOLOGIES THAT MINIMIZE ENVIROMENTAL RISKS AND PROVIDE SOLUTIONS TO ELIMINATE LIABILITIES, AND LAST BUT NOT LEAST, OUR EMPLOYEES ARE ACCOUNTABLE THROUGH PERFORMANCE INDICATORS WHICH CONSIDER SPECIFIC ENVIROMENTAL AND SAFETY GOALS.
LET´S NOW TALK ABOUT PDVSA´ S TEN YEARS BUSINESS PLAN: OUR CORPORATE STRATEGY IS FOCUSED ON THREE MAIN AREAS, FIRST WE ARE CONCENTRATING OUR EFFORTS AND OUR OWN RESOURCES IN THE CORE BUSINESS, THAT IS, EXPLORATION & PRODUCTION AND REFINING & MARKETING. DEPLOYING AND STRATEGY AIMED AT THE CONTINUOUS IMPROVEMENT OF OUR COST COMPETITIVENESS AND OPTIMIZATION OF OUR ASSET UTILIZATION SECOND WE WANT TO PROMOTE MAXIMUM PARTICIPATION OF THE PRIVATE SECTOR IN THE DEVELOPMENT OF THE GAS, CHEMICAL, PETROCHEMICAL, ORIMULSION AND COAL INDUSTRIES AND… THIRD, WE ARE STRIVING TO BE LEADERS IN THE AREAS OF HEALTH, SAFETY AND ENVIRONMENT PROTECTION WITHIN OUR INDUSTRY.
OUR VIEW OF THE MARKET IN THE MEDIUM TERM GIVE US THIS FORECAST FOR THE DEVELOPMENT OF PRODUCTION CAPACITY SEGREGATED AS YOU CAN SEE BY THE DIFERENT AGENTS THAT PRODUCE OIL WITHIN THE PDVSA CHAIN. THIS PRODUCTION CAPACITY IS EXPECTED TO INCREASE BY AROUND 2 MILLION BARRELS PER DAY IN THE NEXT 9 YEAR, REACHING A LEVEL OF 5.8 MILLIONS BARRELS A DAY AT THE END OF THAT PERIOD. PDVSA´S OWN CONTRIBUTION WILL BE THE SWING, AS WE HAVE TO MEET THE DEMAND THAT MARKET POSES AND AND AT THE SAME TIME, TO COMPLY WITH THE PROFIT SHARING AND OPERATIONAL AGREEMENTS THAT WE HAVE WITH OUR PARTNERS.
TO SUSTAIN THE LONG TERM VIABILITY OF OUR BUSINESS AND TO IMPROVE THE COMPOSITION OF OUR BASKET OF RESOURCES, OUR BUSINESS PLAN CONTEMPLATES AN AGGRESSIVE EXPLORATION ACTIVITY THAT WILL BE DEPLOYED WITH OUR OWN RESOURCES IN OIL AND WITH THIRD PARTIES IN GAS. THE EXPECTATIONS AS YOU SEE ARE IN THE ORDER OF 36 MILLION BARRELS OF OIL AND 136 TCF OF GAS
SINCE MOST OF OUR RESERVES ARE IN THE ORINOCO OIL BELT, WE DEVELOPED FOUR STRATEGIC ASSOCIATIONS WITH IMPORTANT INTERNATIONAL OIL COMPANIES SUCH AS: CONOCO, EXXON-MOBIL, PHILLIPS, TEXACO, STATOIL AND VEBA OEL. THIS COMPANIES WILL BUILD AND OPERATE DEEP CONVERSION UNITS TO PRODUCE SINTHETIC CRUDE OIL. ADDITIONALLY, AT THIS MOMENT, WE ARE ANALIZING SEVERAL NEW OPPORTUNITIES TO INCREASE THIS BUSINESS: EXPANSIONS OF THE EXISTING, BOTH TROUGH SINTHETIC CRUDE AND PRODUCTS AND GRASS ROOTS. THE SPECIFIC CONTRIBUTION OF THE 4 STRATEGIC ASSOCIATIONS UNDER DEVELOPMENT IMPLIES IMPORTANT CAPITAL EXPENDITURES OF WHICH PDVSA WILL FUND 32 % AND THE PARTNERS 52% LEAVING THE REST TO BE LIFTED BY PROJECT FINANCING IN AN AGRESSIVE TIMETABLE THAT HAVE BEEN SO FAR WITHIN SCHEDULE AND BUDGET AND WITH INCORPORATION OF PRODUCTION LEVELS THAT YOU SEE IN THE SLIDE.
IN THE UPSTREAM (E&P) PDVSA WILL BE INVESTING ALMOST 40 BILLION DOLLARS IN TEN YEARS PLAN, WHERE ABOUT 55% WILL BE WITH OWN EFFORT AND THE REST WITH PARTICIPATION OF THIRD PARTIES. 62% WILL BE ALLOCATED IN EASTERN VENEZUELA AND 38% IN THE WESTERN PART OF THE COUNTRY. THE MAIN TRUST ON PROJECTS WITH PDVSA EFFORT WILL BE CENTERED ON PRODUCTION CAPACITY MAINTENANCE, INCREASE PRODUCTIVITY AND OPTIMIZE OF THE EXISTING INFRASTRUCTURE.
IN THE REFINIG SECTOR, THE INVESTMENT WILL BE AROUND 3 BILLION DOLLARS DURING THE TEN YEARS PERIOD. ALMOST HALF OF THAT INVESTMENT WILL BE TO ASSURE THE PRODUCT QUALITIES REQUIRED FOR THE MARKET AND THE REST WILL BE INVESTED IN SAFETY, RELIABILITY AND PROFITABILITY PROJECTS.
ORIMULSION IS AN STABLE MIX OF WATER AND BITUMEN FROM THE ORINOCO OIL BELT, WHICH WAS DEVELOPED BY INTEVEP, IN ORDER TO PROVIDE AN ALTERNATIVE USE FOR THE INMENSE RESOURCES OF THE AREA. THIS PRODUCT HAS PROVEN SUCCESFULL AS A COST EFFECTIVE POWER PLANT FUEL, AND CURRENTLY IS BEING USED IN EUROPE AND ASIA. THE PROJECTED GROWTH IN ORIMULSION WIL BE BY STEPS AS SHOWN, AND OPEN TO THE PARTICIPATION OF THIRD PARTY INVESTORS
IN ORDER TO MEET THE GOALS INCLUDED IN OUR BUSINESS PLAN, PDVSA WILL INVEST A TOTAL OF 55 BILLION DOLLARS DURING THE NEXT TEN YEARS. AS YOU CAN SEE THE DISTRIBUTION OF TOTAL INVESTMENT, REFLECTS THE SHAREHOLDERS GUIDELINE OF CONCENTRATING IN THE CORE BUSINESS OF E&P AND R&M. ADDITIONALLY, OUR BUSINESS PLAN REQUIRES A SIGNIFICANT PARTICIPATION OF FOREIGN INVESTORS. OF THE 55 BILLION DOLLARS INVESTMENT, ONLY 42% WILL BE FUNDED BY PDVSA. IN GAS & PETROCHEMICALS WE EXPECT TO HAVE A SHARE LOWER THAN 30%.
IN SUMMARY, PETROLEOS DE VENEZUELA´S BUSINESS PLAN IS BASED ON OUR COUNTRY´S LARGE RESOURCES, BUT ALSO CONSIDERS OUR COMPETITIVE ADVANTAGES SUCH AS OUR GEOGRAPHICAL LOCATION, OUR QUALIFIED PERSONNEL AND OUR TECHNOLOGY. ALSO, VERY STRONG FINANCIAL FUNDAMENTALS IS CONSIDERED PROVIDING EXCELLENT OPPORTUNITIES FOR THE PRIVATE INVESTORS. THANK YOU FOR YOUR ATTENTION ...