March 10, 2006
Pdvsa to expand market in China and the Caribbean

(El Universal) - "State oil holding Petróleos de Venezuela, S.A. (Pdvsa) is set both to expand its presence in the Chinese energy market and to consolidate its energy integration plans in Latin America, a senior Pdvsa official said Friday in Panama.

Pdvsa Commerce and Supply managing director Asdrúbal Chávez made this statement during his speech before entrepreneurs attending a forum the Venezuelan trade mission organized for the 24th international trade fair 'Expocomer' in Panama City.

According to Chávez, Pdvsa has plans to build new refineries in Venezuela and the Caribbean, through initiatives such as Petrocaribe.

Pdvsa has outlined these strategies for growth and market expansion based on estimations that oil consumption is to increase by seven percent both in the United States and Western Europe. Chávez claimed that oil consumption in China is almost to double.

He added that current Pdvsa oil sales to China amount to 160,000 bpd. By the end of 2006, they are to jump to 300,000 bpd.

Chávez stressed, however, that the Caribbean route to take oil to China is too long. They are therefore seeking a route over the Pacific. In this sense, Venezuela is to build, together with Colombia and Panama, an oil pipeline facilitating these changes.

Regarding projects under Petrocaribe, Chávez stressed they have started construction of three refineries in Venezuela, two of them with a 50,000 bpd capacity and one with 40,000 bpd, Efe reported.

They have also plans to reactive a 70,000 bpd oil refinery in Cienfuegos, Cuba; a 50,000 bpd refinery in Jamaica and a 200,000 bpd refinery in Brazil.

According to Chávez, by 2012 Pdvsa output would be 5.8 million bpd, with exports of by-products at 1.3 million bpd".