Business plan 2000-2009

PDVSAPDVSA

PC2000_10 BUSINESS PLAN ./ 1Enero 2001Enero 2001

PDVSA

• DimensionDimension

• Business Plan 2000-2009Business Plan 2000-2009

PDVSAPDVSA

PC2000_10 BUSINESS PLAN ./ 2

Overview

• PDVSA: a Global Energy Corporation

• Reserves (Oil and Gas)

• Production Capacity

• Refining Capacity

• Technology

• Green Performance

• Business Plan 2000-2009

PDVSAPDVSA


A Global Energy Corporation - 1999

PRODUCTIONCAPACITY3.6 MMBD

PRODUCTIONCAPACITY3.6 MMBD

RESERVES OIL 77 Bn BLS GAS 147 TCF

RESERVES OIL 77 Bn BLS GAS 147 TCF

MARKETING4.5 MMBD

MARKETING4.5 MMBD

REFINING CAPACITY3.3 MMBD

REFINING CAPACITY3.3 MMBD

PETROCHEMICAL PROD.4.5 MMTON/YEAR

PETROCHEMICAL PROD.4.5 MMTON/YEAR

COAL PROD.6.4 MM TON/YEAR

COAL PROD.6.4 MM TON/YEAR

ORIMULSION PROD.4.8 MM TON/YEAR

ORIMULSION PROD.4.8 MM TON/YEAR

SALESBn $ 32.6

SALESBn $ 32.6

MMBD= Million Barrels / Day, MM ton= Million TonsTCF= Trillion Cubic FeetMMBD= Million Barrels / Day, MM ton= Million TonsTCF= Trillion Cubic Feet

PDVSAPDVSA


ReservesR/P

1053 Bn BOE40 Years

World Proven Reserves

37 9.6

21 824

65

Ex- URSS

WesternEurope

81674

ME

Africa Asia

Australia7527

LatinAmerica

37

NorthAmerica

1543

137

Venezuela 43% of theAmericas

Source: BP Amoco 99

World

Oil

VENEZUELA: WORLD´s 6th LARGESTVENEZUELA: WORLD´s 6th LARGEST

PDVSAPDVSA


Billion BarrelsBillion Barrels

Source : BP Amoco1999Source : BP Amoco1999

Proven Reserves

262

113 98 97 90 77

Saudi Arabia Irak UAE Iran VenezuelaKuwait

ORINOCO BELT, THE WORLD LARGEST BITUMEN RESERVOIR

ORINOCO BELT, THE WORLD LARGEST BITUMEN RESERVOIR

MACHETE

R í o O r i n o c o

MACHETEMACHETE ZUATAZUATAC. NEGROC. NEGRO

HAMACAHAMACA

T O T A L T O T A L

AVAILABLE RESOURCES

RECOVERABLE RESOURCES

AVAILABLE RESOURCES

RECOVERABLE RESOURCES

557

95

557

9587

18

87

18227

85

227

851360

272

1360

272

489

74

489

74

PRODUCED AT A RATE OF 10 MBD, RESOURCES WOULD LAST 50 YEARS PRODUCED AT A RATE OF 10 MBD, RESOURCES WOULD LAST 50 YEARS

Proven Reserves + Orinoco Belt

PDVSAPDVSA


Billion BarrelsBillion Barrels

INCLUDING ORINOCO BELT, LARGEST LIQUID HYDROCARBON ACCUMULATION

262

113 98 97 9077

309

Source BP Amoco 1999Source BP Amoco 1999

Largest Liquid Hydrocarbon Accumulation

BITUMEN

Saudi Arabia Irak UAE Iran VenezuelaKuwait

PDVSAPDVSA


MMBDMMBD

Largest Producers: 1999 Production Capacity

11

9,1

7,56,6

3,6 3,6 3,2

SAUDIARABIASAUDI

ARABIANORTH

SEANORTH

SEAUSAUSA RUSSIARUSSIA VENEZUELAVENEZUELAVENEZUELAVENEZUELAMEXICOMEXICO CHINACHINA

Source: EIA

Oil

PDVSAPDVSA


World Leading Corporations

Source PIW. Dic - 1999Source PIW. Dic - 1999

Refining Capacity

MMBDMMBD

6,5

4,0

3,3 3,3 3,1

ROYALDUTCH/SHELL

EXXON/ MOBIL

PDVSA CHEVRON/TEXACO

BP / AMOCO

PDVSAPDVSA


NOC’s

Source: PIW, Dic., 1999

ARAMCO(Saudi Arabia)

PDVSA INOC(Irak)

KPC(Kuwait)

PEMEX(Mexico)

PETROBRAS(Brazil)

Refining Capacity

MMBD

3.3

2.01.8 1.7

1.5

1.1

PDVSAPDVSA


Ruhr Oel 50% (432)Germany (4 Ref.)

216

Nynas 50% (72)Sweden(2 ref./Belgium(1 ref.)/ United Kingdom 2ref.)

36

Lemont167

Paulsboro 84

Lake Charles320

Corpus Christi150

LCRC 41.25% (265)110

Savannah28Chalmette 50%

(184)92

St. Croix 50% (545)273

Sweeny (*)165

(*) 50 % share in deep conversion unit

Paraguaná Refining Complex 940

El Palito130

Pto.. La Cruz200

Bajo Grande15

San Roque5

Capacity (MMBD)Venezuela 1.3International 2.0

Venezuela

USA Capacity (*) : 1116 ThBD European Capacity: 252 ThBD

ISLA 335

Caribbean Capacity 608 ThBD

Refining Capacity

PDVSAPDVSA


SwedenSwedenNorwayNorway

NynashamnNynashamn

GötenborgGötenborg

GelsenkirchenGelsenkirchenKarlsruheKarlsruhe

EasthamEastham

Dundee

IrelandIreland UKUK

SchwedtSchwedt

European Operations

NeustadtNeustadt

MarselleMarselle

TOTAL RUHR/NYNÄS: 504 Th BDPDVSA PARTICIPATION : 252 Th BDSUPPLY AGREEMENTS: 272 Th BD

TOTAL RUHR/NYNÄS: 504 Th BDPDVSA PARTICIPATION : 252 Th BDSUPPLY AGREEMENTS: 272 Th BD

WilhelnashavenWilhelnashavenAmberesAmberes

TriesteTrieste

RotterdamRotterdam

International downstream integration allows market access International downstream integration allows market access

Refining Capacity

PDVSAPDVSA


PaulsboroPaulsboroPaulsboroPaulsboro

SavannahSavannahSavannahSavannah

Corpus ChristiCorpus ChristiCorpus ChristiCorpus ChristiLyondellLyondellLyondellLyondell

LakeLakeCharles Charles LakeLakeCharles Charles

CITGO

LemontLemontLemontLemont

CITGO - PDVMR

REFINING CAPACITY (MMBD) TOTAL/PDVSA:TERMINALS:SERVICE STATIONS:STORAGE CAPACITY (MILLION BLS):

REFINING CAPACITY (MMBD) TOTAL/PDVSA:TERMINALS:SERVICE STATIONS:STORAGE CAPACITY (MILLION BLS):

1363/11165915.07924

1363/11165915.07924

One of the largest retail networks One of the largest retail networks

Refining Capacity

PDVSAPDVSA


Venezuela

Storage TerminalsTotal: 50.6 MMB

BOPEC, N.VBonaire (PDVSA)Cap.: 10.1 MMB

BORCOBahamas (PDVSA)

Cap.: 11 MMB

POINT FORTINTrinidad (leased)

Cap.: PDV: 650 ThB

STATIA TerminalSan Eustaquio (leased)

Cap.: PDV: 388 ThB

COTCuracao ( leased)Cap.: 14,5 MMB

EMMASTADCap.: 14,0 MMB

Overseas Storage Capacity

Strategic storage assures adequate distribution

PDVSAPDVSA


231 9

18419

88

2003

Ex- URSSWestern Europe 274

1750

ME

Africa Asia

Australia

ReservesR/P

5170 TCF65 Years

361

101LatinAmerica

66

NorthAmerica

41

360

283

Venezuela28% of the Americas

Proven Reserves

Source: BP/AMOCO 00

Natural Gas

World

VENEZUELA: WORLD’s 8 th LARGESTVENEZUELA: WORLD’s 8 th LARGEST

PDVSAPDVSA


Venezuela’s Gas Reserves / 1999

PROVENPROBABLE38

POSSIBLE

43

ASSOCIATED

NON- ASSOCIATED

64 %17 %

19 % 91%

9%

146

133

13

Natural Gas

Most of the reserves largely associated to oil

PDVSAPDVSA


Creating value in all business activitiesCreating value to Venezuelan nationWin to win relationship with partners

Creating value in all business activitiesCreating value to Venezuelan nationWin to win relationship with partners

PDVSA Intevep as high tech product provider

INT-FCC-1®INT-FCC-1® SEDLA®SEDLA®

AQUACONVERSION®AQUACONVERSION®ISAL®ISAL®

GOV10/20®GOV10/20®

ORIMULSION®ORIMULSION®

WellTECH™WellTECH™

INPETUS™INPETUS™

ST-5®ST-5®

INT-SORB™INT-SORB™

CDInterol®CDInterol®

HHC®HHC® HDH+®HDH+®

INTEBIOS®INTEBIOS®

ULTRACLEAN™ULTRACLEAN™ H2OIL™H2OIL™

DISOL®DISOL®

BIORIZE®BIORIZE®

HOTLIFT™HOTLIFT™

MULTIGEL™MULTIGEL™

DETECTOIL™DETECTOIL™LITECEM™LITECEM™GREENOIL®GREENOIL®

BIODOIL®BIODOIL® SULTRAP®SULTRAP®

ISIS-INT®ISIS-INT®

ULTRAMIX®ULTRAMIX®THIXOGAS®THIXOGAS®INTOIL®INTOIL®

ORIMATITA®ORIMATITA®

LITEDEM®LITEDEM®

CARBOLIG®CARBOLIG®EVAEMP™EVAEMP™

Technology

PDVSAPDVSA


SUPPLIER OF CLEAN PRODUCTS

ELIMINATION OF

LIABILITIES

COMMITTED AND

RESPONSIBLEEMPLOYEES

ACCOUNTABILITY THROUGH PERFORMANCE

INDICATORS ANDPREESTABLISHED GOALS

DEVELOPMENT AND APPLICATION OF TECHNOLOGY TOMINIMIZE RISKS

CONTRIBUTION TO MEET COMMUNITY

NEEDS ON ENVIRONMENT

CERTIFIED ENVIRONMENTAL

MANAGEMENT SYSTEMS

Green Performance

PDVSAPDVSA


Corporate Strategy

• Focus on E&P, R&M with own resources

- Competitive costs - Effective asset utilization

• Promote maximum participation of private sector in:

- Natural gas - Chemicals and petrochemicals- Refinery streams derivatives - Orimulsion- Coal

• Best practices in Health, Safety & Environment Protection.

PDVSA

Business Plan 2000-2009

PDVSAPDVSA


0

1000

2000

3000

4000

5000

6000

00 02 04 06 08

5800Th BD

3955New AreasOwn Effort.

Operating Agreements

Own Effort

Profit Sharing Agreements

Orinoco Oil Belt

Production Capacity

PDVSA’s Business Plan considers a steadygrowth in production capacity


PDVSAPDVSA


Exploratory AreasOil (Million Barrels) / Gas (TCF)

CARIBBEAN SEA

150.000 Km2

150.000 Km2

100.000 Km2

60.000 Km2

13131313 61616161

7777 22222222

10101010 47474747

6666 6666

Significant opportunities to incorporate new oil Significant opportunities to incorporate new oil and gas reservesand gas reserves

Significant opportunities to incorporate new oil Significant opportunities to incorporate new oil and gas reservesand gas reserves

PDVSAPDVSA


Strategic Associations: heavy oil upgrading projects

PDVSAPDVSA

32%32%

52%52%

FinancingFinancing

16%16%

Investments 2000 - 2009:Investments 2000 - 2009:

0

100

200

300

400

500

600

700

2000 2 4 6 8 2010

622

158

HAMACA

SINCOR

CERRO NEGRO

PETROZUATA

Production Th BDProduction Th BDProduction Th BDProduction Th BD

PartnersPartners

Orinoco Oil Belt:a succesful

development of huge extra-heavy oil reserves

( 10-12° API)

Reserves: 217 Bn BLs


PDVSAPDVSA


Exploration and Production

22%

Operating Operating AgreementsAgreements

22%

9%8%

39%

StrategicStrategicAssociationsAssociations

Profit SharingProfit SharingAgreementsAgreements

ExplorationExplorationOwn effortOwn effort

Production Own EffortProduction Own Effort

Investments 2000-2009: 36 - 38 Bn $

PDVSA’s Share : 55% PDVSA’s Share : 55%

PDVSA’s Share : 55% PDVSA’s Share : 55%


PDVSAPDVSA


Refining

OperationalOperationalContinuityContinuity

ProductProductQualityQuality

Environment Environment & Safety& Safety

DeepDeepConversionConversion

37%37%

47%47%

13%13%

3%3%

Investments: 2,0 - 2,7 Bn $Investments: 2,0 - 2,7 Bn $Investments: 2,0 - 2,7 Bn $Investments: 2,0 - 2,7 Bn $


Most investments are dedicated to environmental related projects

PDVSAPDVSA


0

5000

10000

15000

20000

25000

30000

99 01 03 05 07 09

Th TYTh TYTh TYTh TY

MODULE 3MODULE 3MODULE 3MODULE 3

MODULE 2MODULE 2

EXISTING CAP. EXISTING CAP.

Volumetric Expectations

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)

Orimulsion®


PDVSAPDVSA


Total Investments

38%38%

FinancingFinancing

24%24% 34%34%

4%4%

PDVSA equity in PDVSA equity in AssociationsAssociations

PDVSAPDVSAOwn EffortOwn Effort

Partners SharePartners Share

BusinessBusiness

Plan 2000-2009:Plan 2000-2009:

U.S.$ 50 - 55 Billion U.S.$ 50 - 55 Billion

•Exploration & Production •Profit Sharing•Orinoco Oil Belt Assoc.•Operating Agreements•PDVSA

•Refining•Natural Gas•Chemicals•Other sectors

6913141131

49

153

%%

PDVSA SHARE: 42%PDVSA SHARE: 42%

PDVSAPDVSA


Summary

PDVSA´s Business Plan is based on:PDVSA´s Business Plan is based on:

Venezuela´s large resources endowmentVenezuela´s large resources endowment

Venezuela comparative and competitive Venezuela comparative and competitive advantagesadvantages

Strong financial fundamentalsStrong financial fundamentals

Great opportunities for private investmentGreat opportunities for private investment

Business plan 2000-2009

Documents

Transcript of Business plan 2000-2009