2009-11-03 21:22:58 - Opening the Third World Heavy Crude Congress on Margarita Island (Nueva Esparta) at the expropriated Hilton Hotel, Energy & Petroleum Minister Ramon Ramirez said Venezuela is currently producing a nearly 3 million barrels of oil a day and engaged in an investment plan to have enough capacity to produce 4,250,000 barrels a day by 2015.

VHeadline News Editor Patrick J. O'Donoghue reports:

The Minister told 1,000 delegates that Petroleos de Venezuela (PDVSA) hoped to produce 6,862,000 barrels a day by 2021.

Ramirez also touched on efforts being made by partners in joint ventures especially in the Orinoco Oil Belt, which, he says, will be the future of the industry. The belt itself covers an area of

52,000 km² and has been divided into 31 blocks in which 21 countries and 27 companies are involved.

In the area Venezuela hopes to produce 1,856,000 barrels a day by 2010.

The Minister insisted that development plans in the belt have been adjusted, adding that in the presence of a legal and constitutional framework for administering hydrocarbons, the biggest challenge at the moment is technological and how to maximize the country's natural resources.

The government, he continued, is currently working under a scheme of multi-polarity in the markets after completing the nationalization of crude production in the area, which started in 2007 and which currently is producing 532,000 barrels a day of different qualities. "Costs of production are really low and competitive compared to other petroleum basins discovered worldwide, along with extraordinary processes that have allowed us to take extra heavy crude to commercial crude."

Speaking about new developments, the Minister mentioned that shortly a deal will be sealed between a Russian consortium and PDVSA for the Junin 6 block, which should produce 450,000 barrels a day. On the Junin 4 block a pre-agreement has been signed with a Chinese company and talks are in an advanced stage with Petrovietnam for production on Junin 2 block.

Finally the Minister said PDVSA wants to develop infrastructure to improve the processing of heavy crude to be sent to the north-eastern coastal area for export.

Patrick J. O'Donoghue
news.editor@vheadline.com

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