[NYTr] PETROCARIBE Roundup & Venezuela Energy News

[All the News That Doesn't Fit]

excerpted from VIO Venezuela News Roundup - Aug 13, 2007


AP via The Washington Post - August 12, 2007
http://www.washingtonpost.com/wp-dyn/content/article/2007/08/11/AR2007081100894.html

Chavez Deepens Petrocaribe Oil Pledges

By Jorge Rueda
The Associated Press

CARACAS, Venezuela -- Venezuelan President Hugo Chavez pledged on
Saturday to meet Caribbean nations' oil needs for years to come, and
urged the region to unite and seek greater independence from the United
States.

Chavez deepened past pledges to share his country's oil wealth as he
addressed a summit of nations taking part in Venezuela's Petrocaribe
oil initiative, which supplies fuel under preferential terms.

"If we truly unite ... the grandchildren of our grandchildren will have
no energy problems," Chavez said. He predicted oil prices will soon hit
$100 a barrel but said "the Caribbean shouldn't have problems this
century and beyond."

"Venezuela puts this oil wealth at the disposition of our peoples of
the Caribbean," Chavez said. "It belongs to all of us. We're going to
share it like Christ. ... It will be enough for everyone."

Venezuela still counts the United States as its top oil buyer, although
Chavez has sought to diversify his clientele amid tensions with
Washington by selling more to Latin America, the Caribbean and as far
away as China.

Since 2005, when Chavez created Petrocaribe, 14 countries have joined
Venezuela's pact, which lets them finance up to half their oil bills
over 25 years at low interest. That number expanded to 15 on Saturday
with the addition of Nicaragua, whose president Daniel Ortega attended
the talks.

Leaders of nine countries signed a treaty proposed by Chavez in which
Venezuela pledges to guarantee energy supplies and help the nations
develop alternative energy sources. Countries that signed were Haiti,
Grenada, St. Vincent and the Grenadines, Nicaragua, Jamaica, Suriname,
Dominica, Belize and Cuba.

Under Petrocaribe, nations are generally allowed to pay off part of
their oil bills in goods and services. Dominican President Leonel
Fernandez said his country hopes to begin an exchange program offering
hotel and tourism training to visiting Venezuelans.

Caribbean countries have already financed nearly $1 billion in fuel
purchases, and due to interest as low as 1 percent, have seen savings
of $450 million, Chavez said.

Oil Minister Rafael Ramirez said Friday that Venezuela is also making
progress helping upgrade or build refineries in Cuba, Jamaica and
Dominica _ an effort that comes as Chavez's government seeks to
decrease its reliance on a network of U.S. refineries.

Chavez used the meeting to support his ally Cuba, saying the island is
regularly excluded from other summits. Blaming the U.S., he recalled a
2005 gathering in Argentina and said: "How is it that we accept Cuba
not going to that meeting?"

"I swear by my mother ... if there is another one of those summits and
Cuba doesn't go, Venezuela won't go to that summit either because it
doesn't seem fair," Chavez said.

"I know most of you talk with the U.S. government, the majority of our
friends in the Caribbean, except Cuba and us," Chavez added. "But I
hope someday we can all sit down at the same table, as equals and with
respect, with the president of the United States, whoever it is."

He also proposed to one day build an undersea natural gas pipeline
stretching from gas-rich Venezuela to Cuba and possibly Mexico. He said
it would touch the U.S. territory of Puerto Rico, and added, "When will
Puerto Rico be free? The day will come."

                                ***

Bloomberg = August 10, 2007
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aYqZiC7wbLm0

Venezuela, Bolivia Form Joint Natural Gas Venture

By Matthew Walter and Matthew Craze

Venezuela and Bolivia agreed to form a joint venture to explore for
natural gas in Bolivia, the country with the second-largest reserves in
South America.

Venezuelan state-owned Petroleos de Venezuela SA will spend $800
million on exploration in the country, Bolivian state information
agency ABI reported. PDVSA, as the company is known, will form the
venture with Bolivian state energy company YPF Bolivianos.

``Together we're going to bring investment, and we're going to find
more gas in Bolivia,'' Venezuelan President Hugo Chavez said in a
Telesur network broadcast.

Bolivia, Argentina and Venezuela signed an energy cooperation agreement
today in Bolivia, ending Chavez's week- long tour of South America in
which he has offered to use more of his country's oil reserves and
income to provide financial and energy security to his allies.

The joint venture with Bolivia, called Petroandina, will be financed by
revenue from Venezuelan oil, said Julio Montes, Venezuela's ambassador
to Bolivia, according to ABI.

Venezuela's government will also help finance a gas- separation plant
in Bolivia's southern Tarija province that is being built by Argentine
state-energy company Enarsa and YPF Bolivianos, the agency said.
Venezuela also plans to build a 100-megawatt power plant in the eastern
Bolivian province of Cochabamba. 

                                  ***

Reuters - August 9, 2007
http://www.reuters.com/article/companyNewsAndPR/idUSN0921973220070809

Venezuela rules out oil output hike

By Alonso Soto

QUITO - Venezuelan Oil Minister Rafael Ramirez told Reuters on Thursday
he believed world oil inventories were currently much higher than
average and there was no need to increase crude production.

Consumer nations, especially the United States, have begun urging OPEC
producers including Venezuela to increase output to curb rising energy
costs as world crude prices surge to record highs. Oil hit a high of
$78.77 a barrel last week.

"The levels of inventories are much higher than average," Ramirez said
during a visit to Ecuador. "There is no need to increase production."

His comments came as industry sources said Saudi Arabia, the world's
top oil exporter, would keep crude oil supply curbs steady to customers
in Japan and Europe in September from August.

Ramirez also said he saw no threat of arbitration in talks with
ConocoPhillips (COP.N: Quote, Profile, Research) and Exxon Mobil
(XOM.N: Quote, Profile, Research) over Orinoco extra heavy oil field
operations.

Venezuela's government is continuing to hold talks with the two
companies over compensation for their recently nationalized assets in
the Orinoco area.

Exxon and Conoco quit their operations in Venezuela in June after
left-wing President Hugo Chavez ordered the take over of their
facilities in the heavy oil belt. Four other oil majors signed deals
allowing the government a majority stake.

The two companies can negotiate over compensation from Venezuela for
their lost assets or even seek legal action that might end up in
international arbitration. Venezuela says the talks are still ongoing. 

                                   ***

AP via International Herald Tribune - August 10, 2007
http://www.iht.com/articles/ap/2007/08/10/business/LA-FIN-Venezuela-Oil.php

Venezuela's oil minister says OPEC should maintain cuts 
and leave output unchanged

The Associated Press

CARACAS, Venezuela: Venezuela will urge the Organization of Petroleum
Exporting Countries to maintain existing oil production cuts and keep
output levels unchanged, Oil Minister Rafael Ramirez said Friday.

"We believe that the oil cuts must be left in place, and we have
carried them out," Ramirez told reporters at a summit of Caribbean
leaders participating in a Venezuelan oil-supply pact called
Petrocaribe.

Ramirez said Venezuela will make its proposal when the OPEC meets in
late September.

He also said Venezuela continues talks with foreign oil companies
involved in extracting heavy crude in the Orinoco River basin that have
been forced to cede majority control.

President Hugo Chavez's government took over operational control of oil
fields in the eastern Orinoco on May 1 and is now in the process of
forming new joint ventures with companies including U.S.-based Chevron
Corp., Britain's BP PLC, France's Total SA and Norway's Statoil ASA.

"We are ready to create the new mixed companies," Ramirez said.

Ramirez said no decision has been made as to how state-run Petroleos de
Venezuela SA plans to pay the companies for their investments.

He added that talks are also continuing with Exxon Mobil Corp. and
ConocoPhillips, which chose not to participate under the new, tougher
terms.