June 28, 2007
Venezuela plans to build four refineries, considering cooperation with Russian firms

(Interfax Central Europe) - "Venezuela has to build four refineries to process heavy crude from fields in the Orinoco Belt and is considering establishing a joint venture with Russia to satisfy these goals, Venezuelan President Hugo Chávez said during a business conference at the Russian Federation Chamber of Commerce.

'Orinoco, where Lukoil is now working, there are demonstrated reserves of 300 billion tonnes of heavy crude in two new fields,' Chávez said. 'Therefore we have decided to build four refineries, and in the future, accounting for the interests of countries in the Caribbean region, 13 refineries altogether.'

Chávez said that at present, Venezuela is considering establishing a joint venture with Russia in pursuit of these aims. He said that Bolivia, Ecuador, Peru and other South American countries could also found such ventures.

Chávez said that Lukoil and Gazprom have promised to help develop the oil and gas industry in Venezuela.'Gazprom is also working with us in the interests of the Caribbean Basin, where explored fields have reserves of around 200 trillion cubic meters'.

Chávez said the project could involve Ecuador, which has 'a lot of oil, but exports it, buying oil products in return.'

He added that Venezuela is planning to build an 8,000-kilometer gas pipeline from southern Venezuela to Argentina. Accordingly, he noted Venezuela's need for advanced technology in gas liquefaction and other petrochemical sectors.

'Venezuela is buying four to five billion dollars (USD) worth of equipment for extraction and processing of oil and gas,' said Chávez. 'Why not buy it in Russia?'.

He added that he held discussions with Russian President Vladimir Putin on the possibility of forming a gas OPEC. 'I think that in this era of empires is ending, and so that the U.S. 's ban on creating a gas OPEC looks ridiculous.'The U.S. cannot do anything with us anymore', he said".