January 1, 2006
$2.2 billion dollars to increase refining in Latin America

(Avances Corporativos de PDVSA) - "PDVSA's Vice President of Refining, Alejandro Granados, said the Venezuelan corporation will invest 2 billion 176 million dollars in refineries around Latin America. Under the Petroamerica agreement, the company plans to build a refinery in Brazil, together with the state-owned Petrobras and reform three existing refineries in Cuba, Jamaica and Uruguay.

69% of the investment (1,5 billion dollars) will go the Pernambuco refinery in Abreu de Lima, in the northern part of Brazil.

This project is integrated with the exploitation of heavy and extra-heavy oil in the Orinoco Belt, in the southern part of Venezuela, where there are 235.000 million barrels of non-certified reserves.

Pernambuco refinery will process 100,000 daily barrels from the Orinoco Belt mixed with Brazilian crude oil, at the time 100,000 daily barrels of heavy and extra-heavy crude oil will be for the Brazilian refinery market.

The second largest investment will be in La Teja, Montevideo, with 25% of the total (544 million dollars). Its refining capabilities will be doubled to 100.00 daily barrels as well as adapted to the heavy crude oil from the Orinoco Belt.

4% of the investment (87 million dollars) will be for the sate-owned Jamaican refinery PetroJam, with processing capabilities of 36,000 daily barrels and the remaining 2% will be invested in the Cuban refinery Cienfuegos, built by the Soviets 'in order for it to start processing Venezuelan crude oil in mid 2007, and heavy/extra heavy crude oil between 2010 and 2011.

Venezuela and Argentina signed an agreement through which PDVSA will acquire a refinery worth $100 million in that country.

The agreement was signed between President Chávez and President Kirchner during the I Summit of South American Community of Nations.

The refinery, which is part of the Argentinean company Rutilex Hydrocarbons (Rhasa), has capabilities for 8,000 daily barrels and has oil and gas fields, as well as a network of 62 petrol stations.

According to Minister of Foreign Affairs, Alí Rodríguez Araque, the refinery will be operated by PDVSA. President Chávez said 'the way is south; we are consolidating this fact with these agreements and energy alliances on which regional development is depending'.

Kirchner said this was an important and strategic step for regional integration and growth, as well as for social equity and sovereignty".