VENEZUELA - The Venezuelan Oil Refining Sector.The state-owned Petroleos de Venezuela (PDVSA PDVSA Petroleos De Venezuela, SA ) controls one of the biggest oil refining systems in the world. Its domestic refining sector is being expanded by 500,000 b/d to 1.8m b/d by 2012. The capacity of external refineries owned and partly-owned by PDVSA units is being increased by 300,000 b/d. Put together, the total capacity of local and external refineries by 2012 would exceed 4m b/d. If a leased refinery abroad is included, the total would exceed 4.8m b/d.
The last major expansion of the domestic refining sector in Venezuela was achieved in 1996, when the $2.7 bn Cardon Refinery Upgrading Project (PARC (Palo Alto Research Center Incorporated, Palo Alto, CA, www.parc.com) Founded in 1970, PARC is a Xerox subsidiary involved in high-tech research and development. Although Xerox's headquarters are in Stamford, Connecticut, and manufacturing and marketing are in Rochester, New York, PARC is ) and new units in other refineries began operations. There are now six refineries in Venezuela with a total capacity of 1.3m b/d. There are possibilities that external refining ventures would be expanded beyond the figures mentioned above (see Venezuela's trans-national system in OMT (Object Modeling Technique) An object-oriented analysis and design method developed by James Rumbaugh. See Rational Rose.
OMT - Object Modelling Technique No. 22).
Products Exports: The upgrading of the downstream sector in Venezuela has enabled PDVSA to increase its exports of refined oil products. PDVSA often issues tenders to sell gasoline and other fuels.The terms for buyers include destination restrictions.
Upgraded in a US$800m project, the 199,000 b/d refinery at Puerto La Cruz Puerto la Cruz, city (1990 pop. 69,556), NE Anzoátegui state, NE Venezuela, on the Caribbean Sea. Puerto la Cruz is a center for the storage, refining, and shipping of petroleum. in 2004 had a new naphtha naphtha (năp`thə, năf`–), term usually restricted to a class of colorless, volatile, flammable liquid hydrocarbon mixtures. hydrotreating unit added which raised the production of unleaded gasoline to 45,000 b/d, and a diesel hydro-desulphurisation unit which raised the output of ultra low-sulphur diesel (ULSD ULSD Ultra-Low Sulfur Diesel ) to 30,000 b/d. The top quality diesel is being exported to Europe and fellow Latin American countries List of American countries
However, the destination restrictions against the North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and limited demand in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. have compelled PDVSA to send surplus ULSD and gasoline to Europe, a market which occasionally is over-supplied with these fuels, while the US Gulf Coast often becomes acutely short of oil products.
Following Hurricanes Katrina and Rita in the autumn of 2005, for example, that disaster caused the US oil refining sector to be short of capacity by 2.1m b/d. As a result, US prices of gasoline and diesel then were high, whereas in Europe the prices were much lower. PDVSA in the autumn of 2005 also lost a major premium on ULSD spot prices offered on the US Gulf Coast, while the Venezuelan diesel did not meet the EU's cold property requirements on cloud point The Cloud point of a nonionic surfactant or glycol solution is the temperature where the mixture starts to phase separate and two phases appear, thus becoming cloudy. This behavior is characteristic of non-ionic surfactants containing polyoxyethylene chains, which exhibit reverse and cold filter plugging point Cold filter plugging point (CFPP) is the highest temperature, expressed in multiples of 1 °C, at which a given volume of fuel fails to pass through a standardized filtration device in a specified time when cooled under certain conditions. (see background in down19VenzRefNov7-05).
General strikes in December 2002 and January 2003 caused oil output and refining in Venezuela to stop. Supply to the domestic fuels and lubricants market rose from 109,000 b/d in January to 363,000 b/d in June 2003 and to about 480,000 b/d in November of that year.
In order to export higher quality fuels and be able to satisfy a growing domestic population with gasoline and other light products, PDVSA has invested billions of dollars in a major upgrading of its four large Venezuelan refineries. Amuay refinery's upgrading and deep conversion, alone, has cost PDVSA $1.5 bn.
PDVSA is shipping gasoline, jet fuel and diesel to the Central American state of Belize under an agreement signed on Oct. 28, 2005. That came as PDVSA signed a maritime shipping accord with Cuba to prepare for stepping up fuel shipments in the Caribbean. President Hugo Chavez's government has agreed to sell fuel directly to Belize and other Caribbean states under an initiative called PetroCaribe. The agreement requires participating states to pay 60% in cash and allows them to finance the rest through long-term, low-interest loans.
Caracas has said it will accept services and goods such as rice or bananas as partial payment. The first shipment of 15,000 barrels of diesel left PDVSA's Isla Refinery in Curacao on Oct. 30, 2005, bound for Belize. The deal was signed by Asdrubal Chavez, who is the president's cousin and heads PDVSA's sales and shipping arm PDV PDV Petroleos de Venezuela (Oil company)
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PDV Portal-Drained Viscera Marina, and Cresencio Sosa, a vice minister of investment for Belize. At the signing ceremony, Chavez of PDV Marina said: "The idea is to work for PetroCaribe to take shape in the shortest time possible. Until now six countries have signed supply contracts under the PetroCaribe accord, and the idea is to benefit the member countries, especially the nations affected by recent hurricanes" - the US then excluded.
PDVSA described the shipping deal with Cuba as an "accord of integration in the area of maritime transport" aimed at the "creation of a bi-national company" in charge of handling oil shipments to the Caribbean. The agreement, signed by Chavez and Cuban Transport Minister Alvaro Montero mon·te·ro
n. pl. mon·te·ros
A hunter's cap with side flaps.
[Spanish, hunter, from monte, mountain, from Latin m , calls for using the fleets of PDVSA and Cuba, although it also leaves open the possibility of incorporating ships from other companies. Chavez then said: "This agreement is the continuation of the process of energy integration...in the area of transport".