Business plan 2000-2009

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  • GOOD MORNNIG, LADIES AND GENTLEMEN THIS PRESENTATION THAT I HAVE FOR YOU TODAY IS ABOUT PETROLEOS DE VENEZUELA.
  • THIS PRESENTATION WILL COVER THE TOPICS THAT YOU SEE IN THE SLIDE BEGINNING WITH THE CHARACTERIZATION OF PDVSA THROUGH THE MAIN FIGURES THAT DESCRIBE OUR RESOURCES BASE, BOTH INBOUND AND OUTBOUND LOGISTIC INFRASTRUCTURE, AS WELL AS THE TECHNOLOGY AND ENVIRONMENTAL ASPECTS INCLUDED WITHIN THE FRAMEWORK OF OUR OPERATIONS AND FINALLY, A SUMMARY OF OUR BUSINESS PLAN FOR THE YEARS 2000 TO 2009.
  • PDVSA DEFINES ITSELF IN ITS MISION AS A GLOBAL ENERGY CORPORATION. THIS SLIDE SHOWS THE MAIN NUMBERS THAT DESCRIBE OUR OPERATIONS IN THE VALUE CHAIN THAT WE EXPLOIT AT YEAR END 1999. FROM THE VAST HIDROCARBON RESOURCES THAT ARE PRESENT WITHIN THE VENEZUELAN BORDER, WE ADDRESS THE MARKETS THAT ARE NATURAL TO US BECAUSE OF OUR GEOGRAPHICAL LOCATION AND OUR COMPETITIVE ADVANTAGE THE NUMBERS OF PROVEN RESERVES OF OIL&GAS, PRODUCTION CAPACITY, SALES, EXPORTS, REFINING CAPACITY, PETROCHEMICAL, COAL AND ORIMULSION PRODUCTION THAT YOU SEE IN THE SLIDE GIVE YOU AN IDEA OF THE HUGES DIMENSIONS OF OUR OPERATIONS AND MARKET ACTIVITY WITHIN THE GLOBAL BUSINESS OF PDVSA .
  • TO SUPPORT ITS GROWTH, PDVSA ACCESS ITS VAST RESOURCE BASE OF HYDROCARBONS IN VENEZUELA THAT, IN TERMS OF PROVEN RESERVES IS THE 6TH WORLD´S LARGEST, REPRESENTING 43% OF THE AMERICAS AND GEOGRAPHICALLY LOCATED NEAR THE MOST IMPORTANT MARKETS WITHIN THE ATLANTIC BASIN.
  • IT IS IMPORTANT TO HIGHLIGHT THAT IN THE FIGURES OF PROVEN RESERVES, VENEZUELA RANKS 6TH AMONG THE TOP 10 HOLDERS OF HYDROCARBONS RESERVES IN THE WORLD…...
  • …… .WITHOUT INCLUDING THE VAST RESOURCES OF BITUMEN THAT ARE LOCATED IN THE ORINOCO OIL BELT, WHICH IS THE LARGEST OF THOSE ACCUMULATIONS OF HYDROCARBONS. IN THIS REGARD, IT´S IMPORTANT TO MENTION THAT IF THOSE RESERVES ARE PRODUCED AT THE RATE OF 10 MILLION BARRELS A DAY, IT WOULD LAST FOR AT LEAST 50 YEARS.
  • DOING THE SAME COMPARISON, NOW IN TERMS OF THE PRODUCTION CAPACITY, VENEZUELA RANKS 6TH ALSO AMONG THE TOP 10 OIL PRODUCER COUNTRIES AS YOU SEE IN THE SLIDE...
  • …… AND, IN TERMS OF REFINING CAPACITY, PDVSA IS AMONG THE BIGGEST MAJOR OIL COMPANIES IN THE WORLD, AT THE SAME LEVEL OF BP/AMOCO AND CLOSE TO ROYAL DUCTCH/SHELL…...
  • HOWEVER, IF WE NOW CONSIDER THE REFINING CAPACITY OF THE NATIONAL OIL COMPANIES, PDVSA RANKS #1 AMONG THEM……..
  • … ...THAT CRUDE OIL PROCESSING CAPACITY IS BASED NOT ONLY IN VENEZUELA, BUT ALSO OVERSEAS WHERE 60% OF THAT CAPACITY IS LOCATED, MAINLY IN THE UNITED STATES WITH MORE THAN 1.1 MMBD, ABOUT 600 MBD IN THE CARIBBEAN SEA AND SOME 250 MBD IN EUROPE. IN THE U.S. MOST OF OUR OPERATIONS ARE CONTROLLED BY CITGO WHICH IS 100% OWNED BY PDVSA AND WE HAVE ALSO PRESENCE THROGH JOINT VENTURES WITH PHILLIPS, LYONDELL AND EXXON/MOBIL IN DIFFERENT REFINERIES. IN THE CARIBBEAN, WE ALSO HAVE AN IMPORTANT PRESENCE THROUGH A JOINT VENTURE WITH AMERADA HESS IN SAINT CROIX ISLAND AND A LEASED REFINERY IN CURAZAO.
  • …… IN EUROPE, WE HAVE JV´S WITH VEBA OIL AND FORTUM. IN GERMANY, THROUGH A COMPANY CALLED RURH OEL AND IN THE NORTH OF EUROPE THROUGH NYNAS WHICH HAS REFINERIES IN SWEDEN, UK AND HERE IN BELGIUM (AMBERES). THIS ALSO ALLOWS US TO INTEGRATE OUR VALUE CHAIN ALL THE WAY THROUGH THIS IMPORTANT MARKET.
  • IN THE UNITED STATES AS WELL, WE INTEGRATE OUR VALUE CHAIN ALL THE WAY THROUGH THE MARKET WITH OUR AFFILIATE COMPANY CITGO THAT GIVE US A STRATEGIC ACCESS TO OUR MOST IMPORTANT MARKET AT THE RETAILING LEVEL OF THE BUSINESS INCLUDING NOT ONLY WITH MORE TAHN 15.000 SERVICES STATIONS, WHICH IS ONE OF THE LARGEST IN THE UNITED STATES, BUT ALSO TERMINALS AND STORAGE CAPACITY TO HANDLE THE OUTBOUND LOGISTIC OF THE BUSINESS.
  • INCLUDED WITHIN THIS LOGISTIC IS THE VITAL ACCESS TO STORAGE CAPACITY IN THE CARIBBEAN, IN ORDER TO INSURE THE APPROPRIATE STRATEGIC ADDRESS OF THE NEEDS OF OUR CUSTOMERS LOCATED IN THE ATLANTIC BASIN. AS YOU SEE IN THE SLIDE, WE HAVE ACCESS TO STORAGE CAPACITY THAT AMOUNTS MORE THAN 50 MILLION BARRELS IN TERMINALS LOCATED FROM TRINIDAD TO THE BAHAMAS BY TWO MEANS: OWNERSHIP AND LEASING
  • OUR RESOURCE BASE INCLUDES ALSO SIGNIFICANT AMOUNTS OF NATURAL GAS (146 TCF) THAT ARE THE 28% OF THE AMERICAS AND RANKS VENEZUELA AS THE 8TH IN THE WORLD
  • HOWEVER MOST OF THE GAS RESERVES (91%) ARE LINKED TO OIL FIELDS, OR WHAT IS CALLED ASSOCIATED GAS. THE AVAILABILITY OF THOSE RESOURCES WILL DEPEND ON THE PRODUCTION OF OIL. THEREFORE OUR BUSINESS PLAN CONTEMPLATES FOR NON ASSOCIATED NATURAL GAS A VERY IMPORTANT EXPLORATION ACTIVITY AND DEVELOPMENT OF INFRASTRUCTURE WITH THE ACTIVE PARTICIPATION OF THE PRIVATE SECTOR (NOW ALLOWED IN THE LAW) AND, FROM THERE, THE DEVELOPMENT OF THE MID AND DOWN STREAM CHAIN OF THE BUSINESS TARGETING NOT ONLY THE INTERNAL GAS MARKET, BUT ALSO THE OVERSEAS MARKETS OF THE ATLANTIC BASIN.
  • IN ORDER TO EASE THE ACCESS TO THE APPROPRIATE TECHNOLOGY NEEDED TO DEVELOP EFFICIENTLY AND ECONOMICALLY OUR RESOURCE BASE THAT HAS BEEN ALREADY CHARACTERIZED IN THIS PRESENTATION, WE HAVE OUR OWN AFFILIATE OF R&D INTEVEP THAT THROUGH THE YEARS HAVE PROVIDED US WITH MORE THAN 700 PATENTS AND INVENTIONS APPLICABLE TO THE OIL INDUSTRY AND SOME OF THEM HAVE BEEN LICENCED TO OTHER COMPANIES.
  • AS A GLOBAL CORPORATION, WE ARE DEEPLY COMMITTED WITH THE ENVIRONMENT AND THE HIGHEST SAFETY STANDARDS IN MANY DIFFERENT WAYS: FIRST WE ARE AND WILL CONTINUE TO BE AN IMPORTANT SUPPLIER OF CLEAN PRODUCTS IN ALL OUR REFINERIES AND OUR ENVIRONMENTAL MANAGEMENT SYSTEMS ARE CERTIFIED. IN ADDITION WE DEDICATE AN IMPORTANT EFFORT TO DEVELOP AND APPLY TECHNOLOGIES THAT MINIMIZE ENVIROMENTAL RISKS AND PROVIDE SOLUTIONS TO ELIMINATE LIABILITIES, AND LAST BUT NOT LEAST, OUR EMPLOYEES ARE ACCOUNTABLE THROUGH PERFORMANCE INDICATORS WHICH CONSIDER SPECIFIC ENVIROMENTAL AND SAFETY GOALS.
  • LET´S NOW TALK ABOUT PDVSA´ S TEN YEARS BUSINESS PLAN: OUR CORPORATE STRATEGY IS FOCUSED ON THREE MAIN AREAS, FIRST WE ARE CONCENTRATING OUR EFFORTS AND OUR OWN RESOURCES IN THE CORE BUSINESS, THAT IS, EXPLORATION & PRODUCTION AND REFINING & MARKETING. DEPLOYING AND STRATEGY AIMED AT THE CONTINUOUS IMPROVEMENT OF OUR COST COMPETITIVENESS AND OPTIMIZATION OF OUR ASSET UTILIZATION SECOND WE WANT TO PROMOTE MAXIMUM PARTICIPATION OF THE PRIVATE SECTOR IN THE DEVELOPMENT OF THE GAS, CHEMICAL, PETROCHEMICAL, ORIMULSION AND COAL INDUSTRIES AND… THIRD, WE ARE STRIVING TO BE LEADERS IN THE AREAS OF HEALTH, SAFETY AND ENVIRONMENT PROTECTION WITHIN OUR INDUSTRY.
  • OUR VIEW OF THE MARKET IN THE MEDIUM TERM GIVE US THIS FORECAST FOR THE DEVELOPMENT OF PRODUCTION CAPACITY SEGREGATED AS YOU CAN SEE BY THE DIFERENT AGENTS THAT PRODUCE OIL WITHIN THE PDVSA CHAIN. THIS PRODUCTION CAPACITY IS EXPECTED TO INCREASE BY AROUND 2 MILLION BARRELS PER DAY IN THE NEXT 9 YEAR, REACHING A LEVEL OF 5.8 MILLIONS BARRELS A DAY AT THE END OF THAT PERIOD. PDVSA´S OWN CONTRIBUTION WILL BE THE SWING, AS WE HAVE TO MEET THE DEMAND THAT MARKET POSES AND AND AT THE SAME TIME, TO COMPLY WITH THE PROFIT SHARING AND OPERATIONAL AGREEMENTS THAT WE HAVE WITH OUR PARTNERS.
  • TO SUSTAIN THE LONG TERM VIABILITY OF OUR BUSINESS AND TO IMPROVE THE COMPOSITION OF OUR BASKET OF RESOURCES, OUR BUSINESS PLAN CONTEMPLATES AN AGGRESSIVE EXPLORATION ACTIVITY THAT WILL BE DEPLOYED WITH OUR OWN RESOURCES IN OIL AND WITH THIRD PARTIES IN GAS. THE EXPECTATIONS AS YOU SEE ARE IN THE ORDER OF 36 MILLION BARRELS OF OIL AND 136 TCF OF GAS
  • SINCE MOST OF OUR RESERVES ARE IN THE ORINOCO OIL BELT, WE DEVELOPED FOUR STRATEGIC ASSOCIATIONS WITH IMPORTANT INTERNATIONAL OIL COMPANIES SUCH AS: CONOCO, EXXON-MOBIL, PHILLIPS, TEXACO, STATOIL AND VEBA OEL. THIS COMPANIES WILL BUILD AND OPERATE DEEP CONVERSION UNITS TO PRODUCE SINTHETIC CRUDE OIL. ADDITIONALLY, AT THIS MOMENT, WE ARE ANALIZING SEVERAL NEW OPPORTUNITIES TO INCREASE THIS BUSINESS: EXPANSIONS OF THE EXISTING, BOTH TROUGH SINTHETIC CRUDE AND PRODUCTS AND GRASS ROOTS. THE SPECIFIC CONTRIBUTION OF THE 4 STRATEGIC ASSOCIATIONS UNDER DEVELOPMENT IMPLIES IMPORTANT CAPITAL EXPENDITURES OF WHICH PDVSA WILL FUND 32 % AND THE PARTNERS 52% LEAVING THE REST TO BE LIFTED BY PROJECT FINANCING IN AN AGRESSIVE TIMETABLE THAT HAVE BEEN SO FAR WITHIN SCHEDULE AND BUDGET AND WITH INCORPORATION OF PRODUCTION LEVELS THAT YOU SEE IN THE SLIDE.
  • IN THE UPSTREAM (E&P) PDVSA WILL BE INVESTING ALMOST 40 BILLION DOLLARS IN TEN YEARS PLAN, WHERE ABOUT 55% WILL BE WITH OWN EFFORT AND THE REST WITH PARTICIPATION OF THIRD PARTIES. 62% WILL BE ALLOCATED IN EASTERN VENEZUELA AND 38% IN THE WESTERN PART OF THE COUNTRY. THE MAIN TRUST ON PROJECTS WITH PDVSA EFFORT WILL BE CENTERED ON PRODUCTION CAPACITY MAINTENANCE, INCREASE PRODUCTIVITY AND OPTIMIZE OF THE EXISTING INFRASTRUCTURE.
  • IN THE REFINIG SECTOR, THE INVESTMENT WILL BE AROUND 3 BILLION DOLLARS DURING THE TEN YEARS PERIOD. ALMOST HALF OF THAT INVESTMENT WILL BE TO ASSURE THE PRODUCT QUALITIES REQUIRED FOR THE MARKET AND THE REST WILL BE INVESTED IN SAFETY, RELIABILITY AND PROFITABILITY PROJECTS.
  • ORIMULSION IS AN STABLE MIX OF WATER AND BITUMEN FROM THE ORINOCO OIL BELT, WHICH WAS DEVELOPED BY INTEVEP, IN ORDER TO PROVIDE AN ALTERNATIVE USE FOR THE INMENSE RESOURCES OF THE AREA. THIS PRODUCT HAS PROVEN SUCCESFULL AS A COST EFFECTIVE POWER PLANT FUEL, AND CURRENTLY IS BEING USED IN EUROPE AND ASIA. THE PROJECTED GROWTH IN ORIMULSION WIL BE BY STEPS AS SHOWN, AND OPEN TO THE PARTICIPATION OF THIRD PARTY INVESTORS
  • IN ORDER TO MEET THE GOALS INCLUDED IN OUR BUSINESS PLAN, PDVSA WILL INVEST A TOTAL OF 55 BILLION DOLLARS DURING THE NEXT TEN YEARS. AS YOU CAN SEE THE DISTRIBUTION OF TOTAL INVESTMENT, REFLECTS THE SHAREHOLDERS GUIDELINE OF CONCENTRATING IN THE CORE BUSINESS OF E&P AND R&M. ADDITIONALLY, OUR BUSINESS PLAN REQUIRES A SIGNIFICANT PARTICIPATION OF FOREIGN INVESTORS. OF THE 55 BILLION DOLLARS INVESTMENT, ONLY 42% WILL BE FUNDED BY PDVSA. IN GAS & PETROCHEMICALS WE EXPECT TO HAVE A SHARE LOWER THAN 30%.
  • IN SUMMARY, PETROLEOS DE VENEZUELA´S BUSINESS PLAN IS BASED ON OUR COUNTRY´S LARGE RESOURCES, BUT ALSO CONSIDERS OUR COMPETITIVE ADVANTAGES SUCH AS OUR GEOGRAPHICAL LOCATION, OUR QUALIFIED PERSONNEL AND OUR TECHNOLOGY. ALSO, VERY STRONG FINANCIAL FUNDAMENTALS IS CONSIDERED PROVIDING EXCELLENT OPPORTUNITIES FOR THE PRIVATE INVESTORS. THANK YOU FOR YOUR ATTENTION ...
  • Business plan 2000-2009

    1. 1. PDVSAPDVSA• Dimension• Business Plan 2000-2009Enero 2001 PC2000_10 BUSINESS PLAN ./
    2. 2. PDVSAOverview • PDVSA: a Global Energy Corporation • Reserves (Oil and Gas) • Production Capacity • Refining Capacity • Technology • Green Performance • Business Plan 2000-2009 PC2000_10 BUSINESS PLAN ./
    3. 3. PDVSAA Global Energy Corporation - 1999 RESERVESOIL 77 Bn BLS REFINING CAPACITYGAS 147 TCF 3.3 MMBD PRODUCTION PETROCHEMICAL PROD. CAPACITY 4.5 MMTON/YEAR 3.6 MMBD SALES COAL PROD. Bn $ 32.6 6.4 MM TON/YEAR MARKETING ORIMULSION PROD. 4.5 MMBD 4.8 MM TON/YEAR MMBD= Million Barrels / Day, MM ton= Million Tons TCF= Trillion Cubic Feet PC2000_10 BUSINESS PLAN ./
    4. 4. PDVSA Oil World Proven Reserves World Reserves 1053 Bn BOE 65 R/P 40 Years 24 8 21 37 Ex- URSS 9.6 674 Western 81 Europe North America ME 15 Venezuela 43 43% of the Africa Asia Americas 137 37 Latin America 27 75 AustraliaSource: BP Amoco 99 VENEZUELA: WORLD´s 6th LARGEST PC2000_10 BUSINESS PLAN ./
    5. 5. PDVSA Proven Reserves + Orinoco Belt ORINOCO BELT, THE WORLD LARGEST BITUMEN RESERVOIR Billion Barrels MACHETE MACHETE ZUATA HAMACA C. NEGRO o n o c O r i TOTAL R í o 262 AVAILABLE RESOURCES 489 557 87 227 1360 RECOVERABLE RESOURCES 74 95 18 85 272 PRODUCED AT A RATE OF 10 MBD, RESOURCES WOULD LAST 50 YEARS 113 98 97 90 77 Saudi Arabia Irak UAE Kuwait Iran VenezuelaSource : BP Amoco1999 PC2000_10 BUSINESS PLAN ./
    6. 6. PDVSA Largest Liquid Hydrocarbon Accumulation Billion Barrels 309 262 BITUMEN 113 98 97 90 77 Saudi Arabia Irak UAE Kuwait Iran Venezuela INCLUDING ORINOCO BELT, LARGEST LIQUID HYDROCARBON ACCUMULATIONSource BP Amoco 1999 PC2000_10 BUSINESS PLAN ./
    7. 7. PDVSA Oil Largest Producers: 1999 Production Capacity MMBD 11 9,1 7,5 6,6 3,6 3,6 3,2 SAUDI USA RUSSIA NORTH MEXICO VENEZUELA CHINAARABIA SEASource: EIA PC2000_10 BUSINESS PLAN ./
    8. 8. PDVSA Refining Capacity World Leading Corporations MMBD 6,5 4,0 3,3 3,3 3,1 EXXON/ ROYAL BP / PDVSA CHEVRON/ MOBIL DUTCH/SHELL AMOCO TEXACOSource PIW. Dic - 1999 PC2000_10 BUSINESS PLAN ./
    9. 9. PDVSA Refining Capacity NOC’s MMBD 3.3 2.0 1.8 1.7 1.5 1.1 PDVSA ARAMCO PEMEX PETROBRAS INOC KPC (Saudi Arabia) (Mexico) (Brazil) (Irak) (Kuwait)Source: PIW, Dic., 1999 PC2000_10 BUSINESS PLAN ./
    10. 10. PDVSA Refining Capacity Venezuela USA Capacity (*) : 1116 ThBD European Capacity: 252 ThBD Lemont 167 Nynas 50% (72) Sweden(2 ref./Belgium(1 ref.)/ United Kingdom 2ref.)Paulsboro 84 36 Sweeny (*) 165 Ruhr Oel 50% (432) SavannahChalmette 50% Germany (4 Ref.) 28 (184) 216 LCRC 41.25% (265) 92 110 Lake Charles Paraguaná Refining 320 Complex 940 Capacity (MMBD) Corpus Christi Venezuela 1.3 150 St. Croix 50% International 2.0 ISLA 335 (545) 273 Bajo Grande El Palito Pto.. La Cruz 15 130 200Caribbean Capacity 608 ThBD San Roque (*) 50 % share in deep conversion unit 5 PC2000_10 BUSINESS PLAN ./ 1
    11. 11. PDVSA Refining Capacity European OperationsTOTAL RUHR/NYNÄS: 504 Th BDPDVSA PARTICIPATION : 252 Th BDSUPPLY AGREEMENTS: 272 Th BD Norway Sweden Nynashamn Dundee UK Götenborg Ireland Eastham Wilhelnashaven Rotterdam Amberes Schwedt Gelsenkirchen Karlsruhe Neustadt Marselle TriesteInternational downstream integration allows market access International downstream integration allows market access PC2000_10 BUSINESS PLAN ./ 1
    12. 12. PDVSA Refining Capacity CITGO - PDVMR REFINING CAPACITY (MMBD) TOTAL/PDVSA: 1363/1116 TERMINALS: 59 SERVICE STATIONS: 15.079 STORAGE CAPACITY (MILLION BLS): 24 Lemont Paulsboro CITGO Savannah Lake Charles LyondellCorpus Christi One of the largest retail networks One of the largest retail networks PC2000_10 BUSINESS PLAN ./ 1
    13. 13. PDVSA Overseas Storage Capacity Venezuela BOPEC, N.V Bonaire (PDVSA) Cap.: 10.1 MMB BORCO Bahamas (PDVSA) Cap.: 11 MMB Storage Terminals Total: 50.6 MMB COTCuracao ( leased) Cap.: 14,5 MMB STATIA Terminal POINT FORTIN EMMASTAD San Eustaquio (leased) Trinidad (leased)Cap.: 14,0 MMB Cap.: PDV: 388 ThB Cap.: PDV: 650 ThB Strategic storage assures adequate distribution PC2000_10 BUSINESS PLAN ./ 1
    14. 14. PDVSA Natural Gas Proven Reserves World 2003 Reserves 5170 TCF R/P 65 Years 19 184 88 Western Ex- URSS North Europe 274 America 231 9 1750 ME 41 Venezuela Africa Asia 28% of the 360 Americas 66 Latin 101 America Australia 283 361Source: BP/AMOCO 00 VENEZUELA: WORLD’s 8 th LARGEST PC2000_10 BUSINESS PLAN ./ 1
    15. 15. PDVSA Natural Gas Venezuela’s Gas Reserves / 1999POSSIBLE 133 ASSOCIATED 43 19 % 91% 64 % 17 % 9% 38 146 13PROBABLE PROVEN NON- ASSOCIATED Most of the reserves largely associated to oil PC2000_10 BUSINESS PLAN ./ 1
    16. 16. PDVSA Technology PDVSA Intevep as high tech product provider HHC® HDH+® ISAL® HOTLIFT™ AQUACONVERSION® ST-5® MULTIGEL™ GOV10/20® BIORIZE® CDInterol® INTEBIOS® H2OIL™ INT-SORB™ ORIMULSION® ULTRACLEAN™ WellTECH™ Creating value in all business activities Creating value to Venezuelan nation Win to win relationship with partnersULTRAMIX® INTOIL® THIXOGAS® DISOL® BIODOIL® SULTRAP® ISIS-INT® INPETUS™ ORIMATITA® GREENOIL ® LITEDEM® LITECEM™ DETECTOIL™ INT-FCC-1® EVAEMP™ CARBOLIG® SEDLA® PC2000_10 BUSINESS PLAN ./ 1
    17. 17. PDVSA Green Performance CERTIFIED SUPPLIER ENVIRONMENTAL OF CLEAN MANAGEMENT PRODUCTS SYSTEMS COMMITTED AND ELIMINATION OF RESPONSIBLE LIABILITIES EMPLOYEESDEVELOPMENT AND CONTRIBUTION TO APPLICATION OF ACCOUNTABILITY MEET COMMUNITY TECHNOLOGY TO THROUGH PERFORMANCE NEEDS ON MINIMIZE RISKS INDICATORS AND ENVIRONMENT PREESTABLISHED GOALS PC2000_10 BUSINESS PLAN ./ 1
    18. 18. PDVSA Business Plan 2000-2009Corporate Strategy • Focus on E&P, R&M with own resources - Competitive costs - Effective asset utilization • Promote maximum participation of private sector in: - Natural gasPDVSA - Chemicals and petrochemicals - Refinery streams derivatives - Orimulsion - Coal • Best practices in Health, Safety & Environment Protection. PC2000_10 BUSINESS PLAN ./ 1
    19. 19. PDVSA Business Plan 2000-2009 Production Capacity Th BD 58006000 Profit Sharing Agreements5000 Orinoco Oil Belt 39554000 Operating Agreements New Areas Own Effort.30002000 Own Effort1000 0 00 02 04 06 08 PDVSA’s Business Plan considers a steady growth in production capacity PC2000_10 BUSINESS PLAN ./ 1
    20. 20. PDVSA Exploratory Areas Oil (Million Barrels) / Gas (TCF) CARIBBEAN SEA 13 61 7 22 150.000 Km2 10 47 60.000 Km 2 150.000 Km2 6 6 100.000 Km2Significant opportunities to incorporate new oil and gas reserves PC2000_10 BUSINESS PLAN ./ 2
    21. 21. PDVSA Business Plan 2000-2009 Strategic Associations: heavy oil upgrading projects Production Th BD700 622 Investments 2000 - 2009:600500 HAMACA Partners400 52%300 SINCOR 158200 CERRO NEGRO 32%100 16% PETROZUATA 0 PDVSA 2000 2 4 6 8 2010 Financing Orinoco Oil Belt: a succesful development of huge Reserves: 217 Bn BLs extra-heavy oil reserves (≈ 10-12° API) PC2000_10 BUSINESS PLAN ./ 2
    22. 22. PDVSA Business Plan 2000-2009 Exploration and Production Profit Sharing Operating Agreements AgreementsExploration 9% 22%Own effort 8% 22% Strategic 39% Associations Production Own Effort Investments 2000-2009: 36 - 38 Bn $ PDVSA’s Share : 55% PC2000_10 BUSINESS PLAN ./ 2
    23. 23. PDVSA Business Plan 2000-2009Refining Operational Continuity 37% Environment 13% & Safety 3% 47% Deep Conversion Product Quality Investments: 2,0 - 2,7 Bn $Most investments are dedicated to environmental related projects PC2000_10 BUSINESS PLAN ./ 2
    24. 24. PDVSA Business Plan 2000-2009Orimulsion® 30000 Th TY Volumetric Expectations 25000 20000 MODULE 3 15000 MODULE 2 10000 5000 EXISTING CAP. 0 99 01 03 05 07 09 Strategic Guidelines First module wholly utilized - 6.5 MM T/year capacity Second and third module to be developed mostly by private investors ($1 Billion Approximately) PC2000_10 BUSINESS PLAN ./ 2
    25. 25. PDVSA Total Investments PDVSA Own Effort PDVSA equity in Associations 38% 4% Partners Share 24% 34% Financing Business % • Exploration & Production 69 •Profit Sharing 13 •Orinoco Oil Belt Assoc. 14 •Operating Agreements 11 •PDVSA 31 Plan 2000-2009: • Refining 4U.S.$ 50 - 55 Billion • Natural Gas 9 • Chemicals 15PDVSA SHARE: 42% • Other sectors 3 PC2000_10 BUSINESS PLAN ./ 2
    26. 26. PDVSA SummaryPDVSA´s Business Plan is based on: Venezuela´s large resources endowment Venezuela comparative and competitive advantages Strong financial fundamentals Great opportunities for private investment PC2000_10 BUSINESS PLAN ./ 2

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