Venezuela Energy Outlook

Transcription

Embassy of the Bolivarian
Republic of Venezuela
Venezuela Energy Outlook
TAXATION SYSTEM, MACROECONOMIC AND
ENERGY OUTLOOK, INDUSTRIAL AND EXCHANGE
POLICY IN VENEZUELA
Bolivarian Hall
Washington, DC
October 31st, 2006
Growing Gap Between Global Demand and
Non-OPEC Supply
Daily Production (mbopd)
120,000
120,000
The Growing Differential Between
Non-OPEC Supply Capacity and
Global Demand
100,000
100,000
80,000
80,000
60,000
60,000
40,000
40,000
20,000
Non OPEC Crude Oil
Non-OPEC NGL
Non-OPEC Oil Sands
1.1% Grow th
1.8% Grow th
2.4% Grow th
8
19 9
91
19
93
19
95
19
97
19
99
20
01
20
03
20
0
20 5
07
20
09
20
11
20
13
20
15
20
1
20 7
19
19
87
0
19
19
85
0
20,000
Source: PFC Energy, 2006
Venezuela Oil & Gas Business Objectives
• Increase and monetize Venezuela’s reserve base
• Enhance Venezuela’s capabilities in Production and Refining
• Convert the Orinoco Belt into a light crude oil reservoir
• Be the #1 oil products exporter in the Western Hemisphere
• Use Natural Gas first to satisfy the domestic market and
second to be an effective tool for energy regional integration
• Enhance infrastructure capabilities and connectivity
• Enhance human talent in key core businesses
• Speed up market diversification to emerging countries
• Diversify supply base of technology, goods & services
• Increase local content and endogenous development in
operating areas
Oil World Reserves
Venezuela, including the Orinoco Belt, is the country with the world’s largest liquid
hydrocarbon reserves (316 billion bbl)
Total World Reserves 1,527 Billion Barrels
Latin America
(excluding Venezuela) 2%
Asia Pacific 2%
Europa 7
%
Africa 7%
Canada 13%
Middle East & Iran
49%
Venezuela
21%
Venezuela
Proved
mmmbbl
80
Orinoco Belt (in process of certification) 236
316
Source: Oil & Gas Journal, December 2005
Oil Reserves Variation
Million barrels
-New Discoveries
+ 6,100
-Revisions
New Reserves -Extension
2001
X- Heavy
45%
Condensate
Medium
/Light
17%
16%
2004
X- Heavy
48%
Heavy
22%
Condensate
/Light
Medium
15%
15%
Heavy
22%
- 3,300
77,783
80,582
Production
Reserves have increased a net 3.6%
Source: PDVSA’s 20-F and Audited Report
Natural Gas Reserves
Venezuela has the potential to become the 4th largest country in gas reserves and the 1st country
in gas reserves in the western hemisphere
Western Hemisphere Reserves
715 Trillion Cubic Feet (TCF)
Latin America
116 17%
World Gas Reserves
6,312 Trillion Cubit Feet (TCF)
North America 249
34%
Iran 971
15%
Russia 1680
Asia Pacific
27%
39% West Europe
Qatar 911
14%
Venezuela 350
49%
Venezuela
North America
Africa
Rest of Middle East
Latin America
6%
Venezuela
TCF
151 152 350 -
mmmboe
26.1 - Proved
34.3 - Estimated (Offshore)
60.4
Source: Oil & Gas Journal, December, 2005
Venezuela’s Total Hydrocarbon
Production
Venezuela’s production, including natural gas, exceeds 4 million bpd oil equivalent
5.0
4.0
MMBPDOE
4.1
4.2
4.1
4.0
3.8
3.6
16%
Natural Gas
3.0
5%
LPG & Condensates
19%
Light
2.0
24%
Medium
1.0
25%
Heavy & XH
(include 3rd party)
11%
Third Party Crudes
0.0
2000
2001
2002
2003
Note: 1 barrel of Oil Equivalent (OE) = 5,800 cubic feet of natural gas
2004
2005
Source: 2000-2004 PDVSA’s 20-F, 2005 Est.
Supply & Disposition of Liquid
Hydrocarbons (mbd)
2004
PDVSA
2005
3rd Parties
Vnzla
PDVSA
3rd Parties
Vnzla
Supply (Production of Liquid Hidrocarbons)
PDVSA's Own Production
Operating Service Agreements
Extra-heavy Crude (less 8 API)
Sub-total PDVSA's crude
Orinoco Belt Associations (% PDVSA's Equity crude):
Petrozuata (49.9%)
PDVSA Cerro Negro (41.67%)
PDVSA Sincor (38%)
Ameriven / Corpoguanipa (30%)
Sub-total Orinoco Belt Association
LPG
Total Production of Liquid Hidrocarbons
2,066
519
38
2,623
-
2,066
519
38
2,623
2,109
502
61
2,672
-
2,109
502
61
2,672
62
50
66
32
210
166
2,999
62
70
109
74
315
315
124
120
175
106
525
166
3,314
60
51
73
50
234
165
3,071
60
71
120
117
368
368
120
122
193
167
602
165
3,439
1,617
53
610
49
2,329
-
1,617
53
610
49
2,329
1,641
86
594
56
2,377
-
1,641
86
594
56
2,377
40
51
76
31
198
2,527
485
3,012
40
71
123
73
307
307
307
80
122
199
104
505
2,834
485
3,319
45
53
81
56
235
2,612
506
3,118
45
76
131
129
381
381
381
90
129
212
185
616
2,993
506
3,499
5
47
13
60
Disposition (Exports and Local Market)
Crude Own Production
Bitor (Orimulsion / Fuel Oil)
Refined Products
LPG
Sub-total PDVSA's crude
Orinoco Belt Associations:
Petrozuata
PDVSA Cerro Negro
PDVSA Sincor
Ameriven / Corpoguanipa
Sub-total Orinoco Belt Association
Total Exports
Local Market Consumption
Total Exports and Local Market
Inventory change & volume net gains / (losses)
13
(8)
PDVSA’s 2005 Crude's and Products Flow
(mbd)
International Activity
PDVSA’s Supply Disposition
Local
Market
Consolidated
Sales
506
2,628
Local
Refineries
Crude &
LPG
Production
Refined
Product
Sales
1,156
Product
Exports
Refined
Product
Purchases
(Wholesale)
650
Crude Spot
Purchases
627
Crude
Exports
1,831
1,472
Refineries
Abroad
1,204
Crude
Sales
Venezuela’s Crude Oil Production
MMBPD
7.0
Risk Sharing Exploration
6.0
4.9
5.0
5.5
3.2
3.3
3.0
2.8
3.1
3.3
3.4
3.8
New JV & Projects
Existing Joint Ventures
4.6
4.0
3.0
5.8
Operating Joint
Partnerships
4.1
Own Operations
2.0
1.0
0.0
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12
Source: 2000-2005 PODE, 2006-2012 PDVSA
Business Plan 2006-2012 (billion US$)
Total: 123.959
55.928
39.781
19.807
8.443
CAPEX: 75.735
OPEX: 48.224
PDVSA
3rd Parties
Expenditures of PDVSA
(billion US$)
Total: 95.709
CAPEX
OPEX
55.928
39.781
609
1.557
8.396
583
3,562
2,194
6,932
4637
925
3,010 109
680
552
6,146
2,444
16,699
93
161
615
Own Efforts
Associations Faja
New Businesses Faja
Offshore
Refining
Deltaven
14,277
PDVSA Gas
Mixed Companies
Risk Agreements
Exploration
Distribution Venezuela
PDV Marina
16,953
Own Efforts
Associations Faja
Mixed Companies
Offshore
Refining
Deltaven
1089
595
2,891
PDVSA Gas
New Businesses Faja
Risk Agreements
Exploration
Distribution Venezuela
PDV Marina
Expenditures Third Parties
(billion US$)
Total: 28.250
CAPEX
OPEX
19.807
8.443
1,496
889
1.083
2,892
5.703
8.067
3,459
1,882
Associations Faja
Mixed Companies
Offshore
1.575
New Businesses Faja
Risk Agreements
Refining
519
685
Associations Faja
Mixed Companies
Offshore
New Businesses Faja
Risk Agreements
Summary: Capital Investment Plan
2006 - 2012
$MMM
Medium Term Plan 2006-2012
Est.
2005
2006
2007
2008
2009
2010
2011
2012
Total
E&P
Exploration
0.2
0.4
0.4
0.5
0.4
0.3
0.2
0.2
2.4
Production
1.9
2.5
2.6
2.4
2.4
2.5
2.2
2.1
16.7
Operating Joint Partnership's
0.6
0.7
0.7
0.5
0.5
0.4
0.2
0.1
3.1
Orinoco Belt
0.0
0.5
0.3
1.9
4.9
3.9
4.0
3.5
19.0
Profit Sharing Agreements
0.1
0.4
0.3
0.2
0.4
0.4
0.0
0.0
1.7
Gas
0.7
2.3
2.5
2.2
2.5
2.2
2.5
2.0
16.2
E&P Total
3.5
6.7
6.8
7.7
11.1
9.6
9.2
8.0
59.0
Refining
0.2
0.6
3.4
3.7
3.8
3.3
1.2
0.3
16.3
Others
0.4
0.2
0.2
0.2
0.3
0.6
0.5
0.0
2.1
4.1
7.5
10.4
11.6
15.3
13.5
10.8
8.3
77.4
TOTAL
Production Schemes
Key Drivers:
Production Schemes
Unconventional oil & gas
drilling (fracture stimulation
and horizontal drilling).
Slant drilling/horizontal
Drilling, commingle wells
Secondary recovery
Water & gas injection
Private participant involved
On offshore drilling and
production by special rigs
(jackups, drill ships, semi
submersible)
Onshore
Traditional Areas
Traditional Areas
Orinoco Belt
Offshore
PDVSA
60 – 80%
PDVSA
51%
Third Parties
Operate
100%
PDVSA
Private
Participation
(operates)
20 – 40%
Own Operations
Private
Participation
(operates)
49%
Operating Joint Partnership
Private
PDVSA FINANCIAL STATEMENT
Income Statement (US $ million)
Audited
2003
International Sales
2004
2005
44,178
60,972
81,105
961
1,227
1,408
1,450
2,558
3,217
46,589
64,757
85,730
21,016
24,649
32,979
Exploration & Production Expenses
9,400
13,492
14,763
Depreciation & Amortization
3,042
3,082
3,334
Royalties
6,428
9,247
13,318
684
456
190
1,175
1,764
1,937
41,745
52,690
66,521
4,844
12,067
19,209
249
1,242
6,909
Income Taxes
1,318
5,419
5,817
Net Income
3,277
5,406
6,483
Venezuela Sales
Other Income
Total Income
Crude & Product Purchases
Interest Expenses
Other Expenses, Net
Total Costs and Expenses
Earnings before Taxes
Social Development Expenses
Source: PDVSA Audited
Cash Contribution’s to the Nation
Increase of contributions to the nation has been in proportion to windfall revenues
45
$ billion
38.9
40
32.6
35
30
27.5
Foreign Currency Revenues (cash)
25
FONDEN
FONDESPA
Social Programs
Dividends
19.5
20
15
24.6
23.0
16.5
11.8
10
9.7
10.0
Royalties
5
Income Tax
0
2001
2002
2003
2004
2005
Exploration Indicators
3.0
2.5
Costs of Exploration per barrel /
Discovered Reserves
% Exploration Succeed
(1997 – 2003)
$/bl
2.0
1.5
46 %
1.0
1.04
0.5
0.0
1993
12 %
1995
1997
1999
2001
2003
Venezuela
World
Incl. revisions
% Exploration Succeed
(2003 – 2004)
Venezuela 70 %
Source : Lehman Brothers/ PDVSA
Exploration Objective 2005 - 2012
Million barrels
-Exploration (8,600)
-Revisions
+ 15,847
New Reserves -Extension
2005
X- Heavy
48%
Condensate
/Light
Medium
14.5%
15.5%
81,307
2012
Heavy
22%
- 12,920
Production
Reserves will increase a net 3.6%
84,230
Exploration – Capital Investment
Plan 2006 - 2012
$ Million
600
505
500
413
409
400
389
284
300
200
100
228
Main Activities
216
Km2
-515
of 2D seismic lines
-21,530 Km2 of 3D seismic lines
-219 exploratory wells
0
2006
2007
2008
2009
2010
2011
2012
E&P: Quantification of Reserves
Only 0.3% of the Orinoco Belt has been developed
1,360 Billion Barrels Estimated
Remaining Estimated Reserves 1,044
77%
Orinoco Belt
To Be
Quantified 236
17%
CARABOBO
BOYACA
MACHETE
Proved Developed 4.0
0.3%
Proved 39
2.9%
JUNIN
AYACUCHO
o c o
n
i
r
O
R í o
Total Area Orinoco Belt 55,314 Km2
Certification of Crude Oil Reserves by
Independent Parties
4
6
1
3
3
PETROZUATA
Petrozuata
5
4
2 44
SINCOR
6
7
7
1
2
9
N
VE
3
55
6
7
7
1
1
1
BITOR
OCN
4
2 3
I
ER
INDIA
2
5
San
Cristobal
AM
PAR QU
E
AGUAR NACIONAL
O G UA
RIQUIT
O
1
4
N
3
3
8
Rio
o co
Or i n
BRAZIL
RUSSIA
CHINA
SPAIN
RUSSIA
IRAN
Orinoco Belt Production Profile
1400
MBPD
1,207
1200
1,138
New Development II
1000
New Development I
807
800
Initial Production
687
637
Optimization
600
Current Production – Strategic Associations
400
SINCOR
200
PETROZUATA
Norway
HAMACA
CERRO NEGRO
USA
France
0
2005
2006
UK
2007
2008
2009
2010
2011
USA
2012
Quantification and Certification Project
of Orinoco Oil Belt Reserves
2005
STAGES
2006
2007
2008
1T 2T 3T 4T 1T 2T 3T 4T 1T 2T 3T 4T 1T 2T 3T 4T
Data Package Preparation
Quantification and Certification of
Reserves
Ayacucho 7
Ayacucho 3 Junin 3
Junin sur
Carabobo 1
Junin 4
Junin 7
- PDVSA stand-alone
Carabobo
(3 Blocks)
- Service Companies
Ayacucho
(5 Blocks)
Junin
(6 Blocks)
Boyacá
(6 Blocks)
- PDVSA & Companies with Mou´s
executed between governments
Canadian Tar Sands vs. Venezuelan FAJA
Production Process: Surface Mining
Production Process: Oil Drilling
Description: Through a complex state
of the art mining and production
process, this bituminous sand is
transformed into Heavy Petroleum
Description: 9°API Crude oil produced
under available technology, that is
upgraded into 32°API Crude
Estimated Recoverable Reserves
Estimated Recoverable Reserves
170 Bbls
236 Bbls
Estimated Production Cost
Estimated Production Cost
Production:
US$ 25 / Barrel*
+
Upgrading cost
ROI=10% @ $40/barrel
< US$ 1 / Barrel
Upgrading:
US$ 4 / Barrel
ROI>200% @ $40/barrel
*Source: Wall Street Journal: As Prices Surge, Oil Giants Turn Sludge Into Gold 03.27.2006
Production – Traditional Areas
4.5
MMBPD
Business Plan 2006-2012
4.0
4.0
3.8
3.5
3.5
3.0
2.5
2.0
3.1
2.6
2.6
2.2
1.9
2.3
2.1 2.2
2.5
2.7
1.5
1.0
0.5
0.0
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12
Own Operations – Capital Investment
Plan 2006-2012
3.0
$MMM
2.6
2.5
2.5
2.4
2.4
2.2
2.4
2.1
2.0
Total
Total $16.7
$16.7
1.5
1.0
2006
2007
2008
2009
2010
2011
2012
Production – Traditional Areas
DRILLING – RA/RC - RIGS/YEAR
# WELLS
1500
1250
RIGS/YEAR
TOTAL WELLS
New:
6590
Ra/Rc:
8117
200
180
160
140
120
100
80
60
40
20
0
1000
750
500
250
0
2006 2007 2008 2009 2010 2011 2012
DRILL
Ra/Rc
R/Y
Infrastructure – Own Operations
Capacity of Installed Infrastructure
● Transportation network:
3,113 Km of crude oil pipeline (28).
Throughput Capacity 6,340 mbd
3,781 Km of gas pipelines
Throughput Capacity 2,748
● Storage capacity:
30 mmbbl (tank farms and shipping terminals). 50
mmbbl in storage tanks located in the Caribbean
(Bonaire, the Bahamas & Curacao)
● Terminal Facilities:
9 maritime ports and 2 river ports
Short Term Annual Training Programs
(Fast Track)
AGREEMENTS
•Abalt Solution Inc
•Canadian Petroleum Institute
•Hidroex (Hydrocarbons Specialists)
•Network of Excellent in Training
•T.H. Hill Associates Inc.
•Houston University
•Well Control School de Venezuela
2005 - 2008
IFP MSc in Geosciences & Integrated Studies
117
Instituto Superior de Energía: MSc in E&P
78
Houston University: MSc in Petroleum Engineering
85
Robert Gordon University: MSc in O&G
180
University of Burgos & Complutense: Exec – MBA
333
TOTAL
793
Refining Assets
PDVSA has a total refining capacity of 3.2 MMBPD (Dec 2005)
Refining Capacity in USA: 1,310 MBPD
Lake Charles
(100%)
425 MBPD
Chalmette
(50%)
92 MBPD
Lemont
(100%)
167 MBPD
Refining Capacity in Europe: 259 MBPD
Nynäs (50%)
Sweden (2 refineries)
UK (2 refineries)
29 MBPD
Paulsboro
(100%)
84 MBPD
Lyondell
(41%)
109 MBPD
Rühr Oel (50%)
Germany (4 refineries)
230 MBPD
Saint Croix
(50%)
248 MBPD
(*) Sweeny
Corpus Christi
(100%)
157 MBPD
(**) Isla
335 MBPD
Refining Capacity in Venezuela 1,303 MBPD
Bajo Grande
15 MBPD
Savannah
(100%)
28 MBPD
(# % ) are PDVSA net interest
(*) 50% Equity interest in a coker and vacuum crude distillation unit
(**) Under lease
Paraguaná Refining
Complex-CRP
940 MBPD
Puerto La Cruz
203 MBPD
El Palito
140 MBPD
San Roque
5 MBPD
Domestic Refining
EXISTING REFINERIES
1- CRP 940 MBPD
- Adapt the refinery to meet future quality
demands
- Residuals to distillates conversion project
- Downstream industrialization
1
2
3
4
6
5
2- RELP 140 MBPD
Project for converting residuals into distillates
- Conversion capacity increase
- HDT Diesel – HDS VGO
- New CCR
3- RPLC 200 MBPD
- Conversion of residuals into distillates
- Merey new desalting unit
- Ethanol Fuel Project:
Lead elimination from gasolines and gradual
substitution of MTBE/ TAME with Ethanol
NEW REFINERIES
4- Caripito Refinery – 50 MBPD
Asphalt production
5- Cabruta Refinery- 400 MBPD
Conversion of extra-heavy crudes
into distillates
6- Santa Inés Refinery - 50 MBPD
Fuel supply for the domestic
market
Refining - International
Cienfuegos 70
Jamaica (50) 25
Cabruta 400
Santa Inés 50
Caripito 50
Brazil (200) 100
Capacity in Venezuela
MMBD
2005
1.3
2012
1.8
International Capacity
MMBD
2005
2.0
2012
2.3
Total :
3.3
4.1
Uruguay (50)
Total Investment: 16.3 US$ bn
Investment in Venezuela 14,2 (87%)
Investment in Petroamerica 2,1 (13%)
Offshore Natural Gas
More than 500,000 km² of Offshore
Proved Reserves: 151 Trillion Cubic Feet (TCF)
Potential: 196 TCF (50% Offshore)
Gas Production: 6,300 Million CF/D
Forecast 2010: 11,500 Million CF/D
VENEZUELAN GULF
Los Monjes
CARIBEAN FRONT
ATLANTIC FRONT
NE FALCON
DELTANA PLATFORM
Delta Caribe Project - Eastern Venezuela
Mariscal Sucre Project
14 TCF
Export: 1000 MMCF
CIGMA
Plataforma Deltana
Project 15 TCF
LNG
CU
MA
NA
CARUPANO
Río Caribe
Gas / Condensate
Corocoro
450 MMB
3TCF
Guarapiche
DeltaPescador
Centro
TUCUPITA Punta
•B-1
Punta Pescador
•B-2
•B-3
LT
O BE
C
O
N
ORI
•B-4
Great South Gas Pipeline
•B-5 En estudio
Assigned Blocks under
Exploration Licensing
Delta Caribe West – Rafael Urdaneta
Project
Future Exploration Licenses
27 TCF
7 mmmb
ls
0,5 3 T
mm CF
mb
Assigned Blocks
ls
CIGMA Project Master Plan
INDUSTRIAL
PARK
ACCOMMODATIONS
CONSTRUCTION
ADMINISTRATIVE AND
CRUDE
SERVICE BUILDINGS
PROCESSING
PETROCHEMICAL PRODUCTS
CRUDE
REFINING
G.T.L.
PETROCHEMICAL
CRUDE
PRODUCTS
UPGRADING
FERTILIZERS
SOLIDS
HANDLING
POWER
GENERATION
RESERVES
GÜIRIA
GÜIRIA
CONTAINERS
GAS
TREATMENT
GAS
CONTAINER
DOCK
LNG PLANTS
PORT
SERVICES
PRODUCT
TERMINAL
SERVICE
DOCK
PETROCHEMICAL
DOCK
PHASES
PERIOD
I - IV
2004 - 2035
LAND LOTS
IN USE
22
PHASE II
PHASE III
PHASE IV
RESIDENTIAL
AREA
CRUDE AND
PRODUCTS
STORAGE
PHASE I
NET AREA (ha)
3200
LNG
TERMINALS
SERVICE
LAND LOTS
8
SERVICE
CORRIDORS (KM)
57
PROTECTED
AREA
SAFETY
AREA
CRUDE OIL EXPORTS BY DESTINATION
(MBD)
1443
1390
931
2006
2009
2012
North America
121
137
177
2006
2009
2012
Europe
765
965
710
150
290
469
2006
2009
2012
Asia
2006
2009
2012
Latin America
MBD: Thousands Barrels per Day
Total Exports
Internationalization
Spot Sales
Orinoco Belt/New Agreements
2006
1671
1041
630
-
2009
2580
1254
1206
120
2012
3297
1344
1168
785
PRODUCTS EXPORTS BY DESTINATION
(MBD)
520
125
233
20
46
50
90
43
119
50
31
12
276
40
2006
117
2012
Europe
2006
2012
North America
484
32
30
93
50
93
234
45
25
121
43
310
2006
2012
Asia
2012
112
Latin America
MBD: Thousands Barrels per Day
2006
50
Fuel Oil
Jet
Diesel
Gasoline
2006
2012
158
102
183
160
82
205
469
388
Regional Energy Integration
Energy Agreements
1.
2.
3.
SAN JOSÉ (80,0 Mbpd)
CARACAS (146,5 Mbpd)
PETROCARIBE (23,7 Mbpd)
Name: Jamaica Refinery
Capacity: 50 Mbpd
Partners: PETROJAM (50%) –
PDVSA (50%)
Name: Cien Fuegos Refinery
Capacity: 70 Mbpd
Partners: PDVSA (100%)
NOMBRE: Antonio Ricaurter Gas
Pipeline
PAÍSES: COLOMBIA, PANAMÁ,
VENEZUELA
Name: Great South American Gas
Pipeline
PAÍSES: ARGENTINA, BOLIVIA,
BRASIL, PARAGUAY, URUGUAY Y
VENEZUELA
Name: Abreu de Lima Refinery
Capacity: 200 Mbpd
Partners: PETROBRAS (50%) –
PDVSA (50%)
Name: La Teja Refinery
Capacity: 100 Mbpd
Partners: ANCAP (50%) – PDVSA (50%)
Venezuelan – Colombian Gas Pipeline
BALLENA
Venezuela
MARAUASAHU
CUATRO VÍAS
CARRAIPIA
Golfo de Venezuela
MAJAYURA
EL CERRO
El Tigre
RIO LIMÓN
Fuerte Mara
TULÉ
SILOÉ
EMR RL
La Concepción
LOS CORTIJOS
EMR
RU
BAJO
GRANDE
TRANSCARIBEAN GAS
PIPELINE ANTONIO
RICAURTE
End Engineering
End Procurement
Start Construction
Execution up to 2006:
• Jobs: 902 (Direct: 243 / Indirect: 659)
• Executed: 28 %
• Engineering & Environmental licenses:
Completed
• Construction: Initiated July 06 installed 10 kms of
pipelines and 150 kms already manufactured
Start of the Project
• Completion date: May 2007
• Total Investment: $ 335 Million
• Total Job creation: 31,060 (4,490 direct /
26,570 indirect)
Initial Start of
Operations: 2012 (50 M
m3/day)
Designed Operational
Capacity:
2017 (150 M m3/day)
Estimated Investment
(Class V):
20 Billion US$
Integration to the South
SUPPLY STRATEGY FOR THE CARIBBEAN
The PETROCARIBE Initiative
•
Minimize Supply Disruption Risk
•
Provide Affordable Access to Energy
•
Minimize Transaction Costs
•
Ensure Minimum Level of
Infrastructure
•
Foster Economic and Social
Development
Estimated Investment 2006-2012: $24 Million
• Termoelectric & Gas Plants – CADAFE
Beyond Social Responsibility
Development of the Agro-industrial and Metal-Mechanic Industries – CORPOCENTRO
• Agronindustrial development
• Highway José Antonio Páez
• Guaire River Bassin Cleaing – SAMARN
• Ezequiel Zamora Railraod (Caracas Middle Tuy) - IAFE
Additional Resources Palavecino
Plant - CADAFE
Additional Resources Termozulia
Combined Cycle - ENELVEN
• Ezequiel Zamora Railraod (Caracas Middle Tuy) – IAFE
• Guaire River Bassin Cleaing – SAMARN
• Development of the Agro-industrial and Metal-Mechanic Industries
– CORPOCENTRO
Cement Plant - CVG
José Antonio Páez Highway –
Propatria 2000 Foundation
• Additional Resources Fabricio Ojeda
Plant – CADAFE
• José Antonio Páez Highway – Propatria
2000 Foundation
• José Antonio Páez Highway – Propatria 2000 Foundation
• Masparro Hydroelectric Plan
• Development of the Agro-Industrial and Metal-Mechanic
Industries – CORPOCENTRO
• José Antonio Páez Highway – Propatria 2000 Foundation
• Additonal Resources Ezequiel Zamora
Thermoelectric Plant – CADAFE
• José Antonio Páez Highway – Propatria
2000 Foundation
• Pulp and Paper Plant
• National Iron and Steel Plant
• Pipes Plant
Venezuela View on
Natural Resource
Management
Venezuela Political Approach on Energy
• Restore the sovereign right of the resource owner
• Reach equilibrium with fair return to investors and sustainable
development to the resource owner
• Enhance affordability, specially to those countries and communities
most in need
• Reduce and eliminate asymmetries in consumption
• Promote energy integration
• Restore Discipline to Supply Management
• Foster a Dialogue Between Producers, Consumers and the Industry
• Explore Ways to Assess and Achieve Fair Price
• Enhance energy conservation and environmentalism
Collapse of the Fiscal Regime
Public Revenues - Gross Domestic Product Ratio
70%
66%
60%
FISCAL EXPORT
VALUE
50%
45%
40%
DIV.
30%
INCOME TAX
20%
10%
ROYALTIES
0%
76
78
80
82
84
86
88
90
92
94
96
98
00
The governance of the Venezuelan oil was
unsustainable, domestically and internationally
Extent of US Companies’ Ability to Enter
Market
Can US
Can a US
Can US purchase
company invest
company obtain
local oil
in Refining/
equity oil?
companies?
Petrochemicals
Can a US company
market petroleum
products?
Only if Joint
Venture
Uncertain
YES
YES
Kuwait
NO
NO
YES
YES
Mexico
NO
NO
NO
YES
Saudi Arabia
NO
NO
YES
YES
Venezuela
YES
YES
YES
YES
China
Source: US Department of Energy; National Security Review of
International Energy Requirements - February 2006
Foreign Investment Rules of the Game
TERMS
Bolivia
• In May, it nationalized its natural-gas industry, ordering foreign companies to give up control of
fields and accept much more strict operating terms in 6 months or leave.
• It declared that the state owns the gas after it has been extracted and that companies at the
country's two largest fields would get 18% of the production.
• In 2005, it had increased the state's take to 50% of production by raising taxes and royalties
(WSJ).
Ecuador
• In April, it imposed a tax of 50% on the “extraordinary profits” earned by foreign investors in the
oil sector. Prior to this, the rate was 20% (BBC, DOE).
Libya
• In 2005, the 2nd EPSA IV bidding round was fiercely competitive, with winning bidders
forced to slash their production percentages as low as 6.8%.
• In addition, oilfield developers initially bear 100% of costs (exploration, appraisal, training) for a
minimum of 5 years, while Libya’s NOC retains exclusive ownership (DOE).
Nigeria
• An increase of taxes from 50% to 85% has been proposed (DOE).
Russia
• National participation of 51% in strategic projects; 90% taxes/royalties/duties on earnings above
$25/bl (DOE).
U.K.
•A special charge on profit was recently raised to 20%, from 10%. It comes on top of a 30% tax
applied to all U.K. corporate profits (WSJ).
Venezuela
• The new terms of the operating joint partnership (empresas mixtas) include a minimum 60%
equity ownership by PDVSA, 33.3% royalty and 50% corporate tax.
Government Take around the World
Source: Wood Mackenzie
Bilateral Energy
Relation
Venezuela – U.S.
●
●
●
The U.S. - Venezuela Energy Relationship
Venezuela accounts of 12% to 15% of
total US imports
Venezuela is the 4th largest supplier of
crude oil to the US
Including exports to Virgin Islands,
Venezuela was the 1st largest foreign
supplier to the US
Main Oil Suppliers to the USA (Crude +
Products)
90,000
80,000
70,000
60,000
50,000
●
●
●
●
Venezuela is the 2nd largest exporter of
oil products to the US
Venezuela is 4 to 5 days shipping time to
the US
Venezuela purchases more than $2
billions per year of good & services from
800 U.S. companies
Venezuela is one of the largest foreign
investor in the US through its CITGO
refining circuit
40,000
30,000
20,000
10,000
0
2000
2001
Venezuela
2002
Canada
2003
Mexico
2004
2005
Saudi Arabia
Source: EIA 2006
Venezuela – CITGO Heating Oil Program
2006-2007
Place:
Massachusetts
New York City
Maine
Rhode Island
Pennsylvania
Vermont
Delaware
Connecticut
Tribus Indigenas (1)
Washington, DC (2)
Alaska (2)
Maryland (2)
Virginia (2)
New Jersey (2)
Indiana (2)
Michigan (2)
Wisconsin (2)
Contingencia
Total:
(1)
(2)
Volume (gallons):
11.445.763
23.845.340
7.630.509
1.907.627
9.538.136
1.907.627
953.814
4.578.305
10.000.000
328.303
769.346
2.901.501
3.808.959
5.600.527
639.739
2.235.471
1.909.034
10.000.000
100.000.000
More than 220 tribes from Alaska, Minnesota, New York, Connecticut y Maine.
New States and Cities.
Households:
60.000
125.000
40.000
10.000
50.000
10.000
5.000
24.000
20.000
1.721
4.033
15.210
19.967
29.359
3.354
11.719
10.007
20.000
459.370
The U.S. Oil Crisis and its approach to
Venezuela
•
The U.S. is under tremendous pressure to access secure and reliable supply of
oil
•
The U.S. energy independence is a myth and cannot be achieved under current
consumption patterns, as the U.S. addiction to oil is highly related to quality-oflife perception, and it is less likely to change that pattern
•
The U.S. SPR proved not to be sufficiently efficient in times of crisis
•
Alternative energy (biofuel and ethanol) is a good sign, but will not be enough
to offset the increase in consumption
•
Sources of oil in the Middle East will at the end and naturally be directed to
satisfy the demand growth in Asia – Current geopolitics in this region proved
not to be efficient to pop up more secure oil
•
The U.S. will have to rely on sustainable supply from within the hemisphere
•
Mexico is declining, Canada is not sufficient and Venezuela has the biggest
reserves of oil in the world
A cooperative approach between the U.S. and Latin America and
specially Venezuela is indeed a sole guarantee for a sustainable
energy security in the Hemisphere
RepublicEmbassy
of Venezuela of
the Bolivarian

Venezuela Energy Outlook

Transcription

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