Venezuela Oil & Gas Presentation UKTI T&T Jan 2010

8/8/2019 Venezuela Oil & Gas Presentation UKTI T&T Jan 2010

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Economic andSocialDevelopments

Economic andSocialDevelopmentsEnergy IntegrationLatin AmericaEnergy IntegrationLatin America

7 Areas of MainDevelopments and

Projects

7 Areas of MainDevelopments and

Projects

Oil & Gas Industry in Venezuela - ScopeOil & Gas Industry in Venezuela - Scope

Social DistrictsSocial DistrictsInternational MarketsInternational Markets Plan SiembraPetroleraPlan Siembra

Petrolera


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Venezuela Crude Oil Reserves Venezuela Crude Oil Reserves

17.7

112.461.820.6

133,4133,4

133,40

17.7

112.461.820.6

133,4133,4

133,40133,40

C/L/M Crude Oil Reserves : 23 Billion Barrels

H/XH Crude Oil Reserves : 149.3 Billion Barrels

Proven Oil Reserves: 172.3 Billion of Barrels Proven Oil Reserves: 172.3 Billion of Barrels

Orinoco Oil Belt Eastern Division Western Division Central-South Division

6,16,111.311.3 1010

9,79,71,71,7

0,10,1

19.9 1,817,4

C/L/M Crude Oil Reserves : 23 Billion Barrels

H/XH Crude Oil Reserves : 149.3 Billion Barrels

Proven Oil Reserves: 172.3 Billion of Barrels Proven Oil Reserves: 172.3 Billion Barrels

Orinoco Oil Belt Eastern Division Western Division Central-South Division

6,16,111.311.3 1010

9,79,71,71,71,71,7

0,10,10,10,1

19.919.9 1,81,817,417,4

Estimated (Original Oil InSitu) (Billion of barrels)

Estimated (Original Oil InSitu) (Billion of barrels) 2272278787557557489489 1,3601,360

BoyacBoyac JunnJunn AyacuchoAyacucho CaraboboCarabobo Total(Billion of barrels)

Total(Billion of barrels)

Total Area: 55,314 Km2

Development Area: 11,593 Km 2Orinoco Socialist Project

Area: 87,068 Km 2

Source: PDVSA Proven Gas Reserve 7-11 TCFProven Gas Reserve 7-11 TCF


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Offshore Gas Developments

Proven Reserves: 150 TCF

Expected: 196 TCF (50% Offshore) Gas Production: 6,300 MMCF/D

Offshore Gas Developments

Proven Reserves: 150 TCF

Expected: 196 TCF (50% Offshore) Gas Production: 6,300 MMCF/D

Eastern ComplexEastern ComplexWest ComplexWest Complex

,,


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Areas of Developments and Major Projects

ISLA DEISLA DEAVESAVES

ISLA DEISLA DEAVESAVES

FACHADA CARIBEFACHADA CARIBEFACHADA CARIBEFACHADA CARIBE

Los MonjesLos MonjesLos MonjesLos Monjes

FALCN NEFALCN NEFALCN NEFALCN NE

N

GOLFO DE VENEZUELAGOLFO DE VENEZUELAGOLFO DE VENEZUELAGOLFO DE VENEZUELA

Offshore GasDevelopmentsOffshore GasDevelopments

Commercialisation ofProducts and International

Integration

Commercialisation ofProducts and International

Integration

FACHADA ATLNTICAFACHADA ATLNTICAFACHADA ATLNTICAFACHADA ATLNTICAPLATAFORMA DELTANAPLATAFORMA DELTANAPLATAFORMA DELTANAPLATAFORMA DELTANAOrienteOccidente

Centro Sur

Orinoco Heavy andExtra Heavy Oil Belt

The Faja

Orinoco Heavy andExtra Heavy Oil Belt

The Faja

Traditional Oil & GasAreas

Traditional Oil & GasAreas

Refining CircuitRefining Circuit

InfrastructureInfrastructure

Certification ofReserves

Certification ofReserves


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SUBSURFACE

SURFACE

E&P Crude Oil Major Projects Orinoco Oil Belt Heavy and Extra Crude Exploitation:

Public Bidding Process of 3 Blocks for Exploitation:19 International Companies Presented Interest.

Assigned Blocks for Exploitation to selected Companies:CNPC (China), Russian Consortium, Malaysian MixedCompany.

Business Opportunities Business Opportunities

RESERVOIR

Traditional Areas of Exploitation: 3 Enhancement Projects in East Venezuela 5 Enhancement Projects in West and Lake Venezuela 2 Enhancement Projects in South Venezuela Mixed Companies Operating Projects


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Business Opportunities Business Opportunities Refining Circuit: Major Projects Orinoco Oil Belt Heavy and Extra Crude Processing and

Treatment: Upgraders - 2015 Actual Refineries in Venezuela:

Puerto La Cruz Refinery Deep Conversion Project:Green Gasoline. (400 KBD) Ongoing Project CRP Complex: FCC Project and Deep Conversion

SUBSURFACE

SURFACE

. El Palito Refinery: Technology Updating UnitProjects. Ongoing Project

New Refineries in Venezuela:

Cabruta Refinery - 2017 Batalla Santa Ines Refinery 2014

International Refineries: 5 New Refineries in JointVenture with 5 Different Countries: Cuba, Jamaica,

China, Brazil, Uruguay.

RESERVOIR


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SUBSURFACE

SURFACE

Business Opportunities Business Opportunities Gas Major Projects (on Going) Offshore East Projects:

Deltana Platform (Trinidad Border): 4 Blocksassigned to: Chevron, Statoil, Total, PDVSA

Mariscal Sucre: 4 Platform Units

Offshore West Projects:

RESERVOIR

International Companies (Russian Consortium,Japanese, Repsol).

Onshore: CIGMA Complex: Treatment and Processing (LNGTrain) Units Gas Pipelines to Domestic Market


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SUBSURFACE

SURFACE

Business Opportunities Business Opportunities Infrastructure Projects (on Going) Gas Projects:

West Cryogenic Complex - CCO Gas Anaco Production Project

Jose 250 Gas Treatment Project 4 Gas Transport Lines Compression Plants

RESERVOIR

International Gas Interconnections :

Colombia Brazil

Ports, Storage and Offloading Facilities Social Developments:

Motorways, Train System, Electricity and Water,Education, Health, Communities.


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UpgradingPetrocedeo

Petropiar

Internation

al Market

Maximum upgradingin Venezuela.

UpgradingPetroanzoategui

High qualitysynthetic crude26 API (higher)

Crude oil between 8,6 and 8,9 API

, 5 a n

d 3 9 A P I

HC/XH35API

Products

Products

Crude oil between 8,5 and 39 API

C r u

d e o

i l b e t w

e e n

Specified mixfor refinery's

diet

C r u

d e

b e

t w e e n

1 6

Upgraded crude16 API


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PDVSA's Use Of Gas Strategy PDVSA's Use Of Gas Strategy


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Challenges Challenges

PDVSA financial issues to develop these major projects. PDVSA Is trying to attractforeign investments from allied countries (China, Russia, Brazil, India, France).

Recently expropiation process of local and international service companies due to

contractual and operative disagreements.

Payments issues due to the fall of Oil Prices in 2008-2009. Late 2009 and 2010, pricesare recovering, but payments are still an issue for some major companies and contracts

eaurecracy w n . as e s o . ons us o nanc ainstitutions.

Foreign Exchange Rate Control is in place, so most of the commercial agreementsshould be done in foreign currency and offshore.

PDVSA lack of expertise (Qualified Personnel) for the gas developments and extraheavy crude oil exploitation projects in the Orinoco Belt.

Technologically and environmental issues will pose a big challenge for the Orinoco Beltdevelopment and major projects.


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Conclusions Conclusions Venezuela has the second largest reserves of crude oil in the world with 172 Billions of ProvenBarrels. Venezuela is placed six in natural gas reserves in the world with 150 TCF (50%Offshore).

Actual bidding process in progress for 3 blocks in the Orinoco Oil Belt and agreements withselected companies and countries. Results due to be announced by the 28th of January 2010.

Venezuela through PDVSA has a development plan to be accomplished by 2030, and PDVSAis taking part in every oil & gas operation project, creating opportunities for qualified andtechnolo ical ex erienced com anies.

British companies are well thought of by some of PDVSAs top management.

THE UK government through UKTI is promoting the trade of goods and services withVenezuela including PDVSAs major current and future projects. Examples of UKTIs

promotional events include:Venezuela UK Roundtable Event in Oct 2009: 15 British Companies interacted with

senior PDVSA officials and learnt about forthcoming opportunitiesVenezuela UK technology Workshop in June 2010: One objective is to work with PDVSA

to Increase the Recovery Factor of Heavy and Extra Heavy Crude Oil Exploitation.


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Thank you very much !! Thank you very much !!

Garca, Dic/2.009Garca, Dic/2.009

Documents

Venezuela Oil & Gas Presentation UKTI T&T Jan 2010