February 9, 2006
Increased petrochemical investment: U.S.$3.9 billion

(Associated Press) - "Venezuela plans to invest U.S.$3.9 billion (euro 3.2 billion) in petrochemical projects to help increase production of fertilizers, plastics and other products, the oil ministry said.

The projects include El Tablazo in the west, Morón in the north-central region and Jose in eastern Venezuela, the Energy and Mines Ministry said in a statement Wednesday night.

President Hugo Chávez noted Wednesday during a visit to El Tablazo that the government also plans to invest U.S.$100 million (euro 83.5 million) in the Tía Juana 1 and Bachaquero 1 plants, giving the country 'five great petrochemical bases.'

Chávez said his government excluded U.S. oil company Exxon Mobil Corp. from a $3 billion (euro 2.5 billion) petrochemical project because it failed to meet the project's terms.

Pequiven, the petrochemicals branch of state oil company Petróleos de Venezuela S.A., plans to move forward with the olefins project without Exxon and has said that the company didn't meet project timetables.

Exxon, based in Irving, Texas, did not immediately respond publicly to Chávez' comment.

The company said in a statement earlier this week, 'We have regretfully accepted Pequiven's decision and hope to continue our relationship.' Olefins are petrochemical derivatives produced from raw materials such as natural gas or crude oil that can be used to produce plastics and industrial solvents".