$56 billion to expand the Middle East of the South


Cordoba, Argentina —Based upon Industrial Information Resources Inc. ’s conversations with Alejandro Granado, vice president of refining of Venezuela’s government-owned oil company, Petróleos de Venezuela SA (PDV) , plans to boost crude oil production to 5.8 million barrels per day by 2012, and 7.5 million barrels by 2020. Additionally, it will spend some $3 billion on expanding refining capacity. For the first six months of 2005 Venezuela’s crude production amounted to 3.3 million barrels per day. Some estimates have national crude-oil reserves exceeding 77 billion barrels.

PDV is considering spending $10.5 billion to build three new Venezuelan refineries in Cabruta, Caripito, and Barinas. If they are built, Venezuelan processing capacity will increase to 700,000 barrels per day. Moreover, investments in four of PDV’s existing Venezuelan refineries could increase heavy, and extra-heavy, crude-oil processing by 62%. These investments would be principally focused on the Paraguana refinery.

Additionally formation of strategic alliances is planned with Caribbean and South American countries to provide access to their refineries. PDV expects to invest $56 billion; the Venezuelan president, Hugo Chávez Frías, has indicated that phase one will run to 2012 and phase two to 2030—to accomplish the goals. Some 85% of the investments will be self-funded.

The Venezuelan and Cuban governments are cooperating to reactivate the 70,000-barrel-per-day Cienfuegos refinery, which will require an estimated $44 million investment.

Venezuela and Jamaica are working on a project to expand the capacity of the Kingston refinery to up to 50,000 barrels per day. An investment of $197 million is planned from 2006-2008.

Venezuela also is considering processing 50,000 barrels per day from Uruguay’s La Teja refinery. A target of 2011 would require a $600 million expenditure.

Venezuela will also construct the 200,000-barrel-per-day San Jose Abreue Lima refinery in Brazil
through its alliance with Petrobras. Some $3 billion is expected to be invested by 2011.

There is also talk of refining Venezuelan crude in Colombia’s Cartagena refinery. Simultaneously, PDV also wants to expand its market share in Chile and Peru.

Richard Phelps , senior editor, Control Engineering

No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Additive manufacturing benefits; HMI and sensor tips; System integrator advice; Innovations from the industry
Robotic safety, collaboration, standards; DCS migration tips; IT/OT convergence; 2017 Control Engineering Salary and Career Survey
Integrated mobility; Artificial intelligence; Predictive motion control; Sensors and control system inputs; Asset Management; Cybersecurity
Featured articles highlight technologies that enable the Industrial Internet of Things, IIoT-related products and strategies to get data more easily to the user.
This article collection contains several articles on how automation and controls are helping human-machine interface (HMI) hardware and software advance.
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Infrastructure for natural gas expansion; Artificial lift methods; Disruptive technology and fugitive gas emissions
Mobility as the means to offshore innovation; Preventing another Deepwater Horizon; ROVs as subsea robots; SCADA and the radio spectrum
Future of oil and gas projects; Reservoir models; The importance of SCADA to oil and gas
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me