Saturday, August 4th 2012 - 05:00 UTC

YPF and PDVSA advance in the energy strategic alliance; next meeting in Caracas

Argentina and Venezuela gave their first step in the creation of an energy strategic alliance between oil companies YPF and PDVSA, after the agreement signed by President Cristina Fernández and her Venezuelan counterpart, Hugo Chávez, in Brasilia last Tuesday.

De Vido and his counterpart Rodriguez Carreño confident of the new opportunities

On Friday Planning Minister Julio De Vido and Oil and Energy counterpart and president of PDVSA, Rafael Ramírez Carreño, headed the encounter that will have a new episode in 30 days, when the Argentine envoy travels to the Caribbean country to work on the details.

Cabinet Chief Juan Manuel Abal Medina and Economy Deputy-Minister Axel Kicillof were also part of the meeting held at the Federal Planning Ministry.

De Vido said that the two ministries’ teams analyzed the different tools from the financial sector to support projects by issuing bonds and other instruments.

“We are considering an additional daily refining of 30.000 barrels supplied by Venezuela, and PDVSA is assessing participating in the Argentine distillation and petrochemicals industries, now that YPF is 51% nationalized”.

PDVSA has also invited YPF to participate in the development of the Pedro Anzoategui field with a daily production of 130.000 barrels, planned to be expanded to 160.000 barrels, in the area known as the Orinoco belt of heavy crude.

A second offer is the development of the Ayacucho VI block which is estimated to have a daily production of 200.000 barrels of oil for the next 40 years. Other mature wells have also been offered to YPF to improve extraction.

Likewise PDVSA said it is interested in developing non conventional hydrocarbons fields in Argentina and in expanding conventional production areas.

“We are convinced Argentina still has abundant conventional reserves but needs to invest in exploration and recovery of its mature fields”, said Ramirez Carreño.

PDVSA said it has a rich experience in the development and use of financial mechanisms that have enabled Venezuela to support its won investment plan valued at approximately 243 billion dollars until 2018.

The new Mercosur strategic full member has proven oil reserves of 297 billion barrels and the national corporation PDVSA has a daily production of 3 million barrels with a horizon of 4 million bpd in 2014 and six million bpd by 2019.

“The sovereign decision from Argentina taking control of its national oil company opens endless possibilities to further advance in our energy cooperation, since now the two governments have the capacity and necessary instruments to keep advancing”, said Ramirez Carreño.

Even when PDVSA is completely government owned the Venezuelan constitution allows mixed companies with the private sector for the development of the country’s national resources.

12 comments Feed

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1 British_Kirchnerist (#) Aug 04th, 2012 - 05:05 pm Report abuse
Great news, the fruits of co-operation coming in fast =)
2 ChrisR (#) Aug 04th, 2012 - 05:17 pm Report abuse
Just how is YPF going to get invovled with developing thses fields when they cannot finance the development of mature fields in Argentina?

This bunch need to get real and find hard currency AND the technical staff to carry out the work. One man on his own, no matter how qualified and experienced he is can do it on his own.

His two part-time mates from the industry are not going to make it work without REAL money, not ArgieCrap© pesos.
3 Steve-32-uk (#) Aug 04th, 2012 - 07:09 pm Report abuse
Interesting fact.
To sail from Venezuela to Argentina is over 4500 miles. It is shorter in distance to sail from Venezuela to the UK.
Strange alliance...
4 ChrisR (#) Aug 04th, 2012 - 09:07 pm Report abuse

Strange people.
5 Pirat-Hunter (#) Aug 05th, 2012 - 04:49 pm Report abuse
#1 you are right everyone in Latin America will be happy and benefit from the integration of our Venezuelan brothers, the more the merrier they say.
#2 YPF won't PDVSA will develop the fields and YPF is there to learn how it's done from them. Soon enough the workers will do the work for pesos. The Equipment needed can be traded for oil.
#3 there is no oil in UK. And fakland island holdings doesn't count because Islas Malvinas are part of Argentina.
#4 I know I would of made deals with China, Russia, india, Pakistan, N Korea or Iran to build a nuclear defense program or a H-bomb to end the illegal occupation of Argentina by brits. Strategy not the word wierd and unorthodox solving political problems.
6 ChrisR (#) Aug 05th, 2012 - 09:22 pm Report abuse

I bet, when they told you your IQ was 80 you were thrilled to bits.

Why do you continually show the world how stupid you are?
7 Ottona (#) Aug 06th, 2012 - 03:22 am Report abuse
Possibly the world's biggest oil&gas production alliance will emerge in the coming years: PDVSA is collaborating already with Brazil PETROBAS. Now Argentina's coporation is connecting. Colombia oil company probably will connect with Venezuelas - with a projected pipline from the Orinoco fields across Colombia to the Pacific - for export to Asia. Ecuador is negotiating to join MERCOSUR - this would add another oil producer. Venezuela's PDVSA owns CITGO - the major oil company in the USA with refinieries and many gas stations across the USA (all using oil imported from Venezuela!). This is good news for the islands in the Caribbean and for Central America - to whom PDVSA of Venezuela provides oil at below-world-market-price - or in barter for agricultural products. And this is good for the 200, 000 poor households in the USA , and Indian Reservation - that each year get FREE heating oil donated by CTIGO Venezuela's U.S. based refineries. (By the way, the free heating oil donated by Venezuela to 200,000 poor U.S. households - is distributed by the not-for-profit “Citizens Energy Corporation” founded and directed by Joseph Kennedy - the newphew of the late U.S. President John F. Kennecy). What do the Brits do for poor U.S. Americans ???
8 Pirat-Hunter (#) Aug 06th, 2012 - 04:48 am Report abuse
#6 do something useful read #7
#7 thank you otona I admire your patience to confront adversity. You posted a Good question.
9 JoseAngeldeMonterrey (#) Aug 06th, 2012 - 04:56 am Report abuse
Hey guys, an Argentinian engineer is one of the leaders in the Curiosity landing in Mars right now. What a great pride for Argentina!
10 ChrisR (#) Aug 06th, 2012 - 12:14 pm Report abuse
9 JoseAngeldeMonterrey

Oh dear! That could be a problem if he is anything like the bunch of losers in Argentina that try to do 'engineering' (from a Professional Engineer).

Perhaps that is why he went to America, he couldn't stand the idiots he used to work with.

11 Orbit (#) Aug 06th, 2012 - 12:29 pm Report abuse
#7, #8... That's a pretty niche question ... you'll probably be aware that the UK is amongst the largest contributors of development aid in the world; perhaps the US poor isn't first on the list though for reasons you should understand.
12 Simon68 (#) Aug 06th, 2012 - 02:00 pm Report abuse
7 Ottona (#)

You keep posting this rubbish, Venezuela does not give fuel oil to impverished American famillies, CITGO sells the fuel oil to the American Government which then gives it to the impoverished famillies, “Citizens Energy Corporation” also BUYS from CITGO at a much reduced price, but CITGO is not giving away the oil!!!!!

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