MercoPress. South Atlantic News Agency

Venezuela invests in regional refining capacity

Venezuela's government owned oil company, PDVSA is planning investments in improving refining capacity in Latinamerica totalling 2,17 billion US dollars revealed the company's Refineries Department Alejandro Granados.

The plan contemplates building a new refinery in the northeast of Brazil in association with Petrobras, Brazil's oil company, which will absorb 1,5 billion US dollars, and the rest in refurbishing three smaller plants in Cuba, Jamaica and Uruguay.

The project is closely integrated with the exploitation of the heavy and extra heavy crude in the Orinoco river basin, to the south of Venezuela where "there are 235 billion barrels of non certified deposits", said Mr. Granados.

The Pernambuco refinery will process 100.000 barrels per day, a mix of Orinoco and Brazilian crude while another 100.000 bpd of heavy and extra heavy oil will be distributed among other Brazilian refineries.

The second investment in importance will be in La Teja, Montevideo with an investment of 130 million US dollars, basically duplicating its refining capacity to 100.000 bpd and adapted to the specifically heavy Orinoco blends.

Another 87 million US dollars are destined to the Petrojam refinery in Jamaica which will also see its 36.000 bpd capacity significantly increased.

Finally the rest is to be invested in the Cienfuegos, Cuba, refinery, originally built by the Soviets which "will be adapted to process Venezuelan crude by mid 2007 and the heavier blends by 2010 and 2011", explained Mr. Granados.

Venezuela's investment in the hemisphere is in the framework of Petroamerica, a regional oil company which supposedly will include all government owned companies in the near future.

Venezuela is investing heavily in new refining facilities, 13 billion US dollars in new plants and in expanding existing capacities.