A new approach to the oil business in Venezuela

Conference · Mon Feb 01 04:00:00 EST 1993 · AAPG Bulletin (American Association of Petroleum Geologists); (United States)

OSTI ID:6107347

Pradas, F; Valdes, G ^[1]

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1. Petroleos de Venezuela, Caracas (Venezuela)

Petroleos de Venezuela S.A. (PDVSA) has been meeting during the past two years with a considerable number of companies (groups) with a view to possible associations for the reactivation of known fields, joint activities in barely explored areas and the exploitation, refining, upgrading and marketing of crudes from the Orinoco Belt holder of immense reserves of extra-heavy crudes and bitumens. In Venezuela, a new approach to the oil business is under way. On January 1976, the law nationalizing the Venezuelan oil industry became effective establishing that the government retains the sole rights to the country's petroleum industry. However, Article 5 of the law made provision for associations in cases considered to be of [open quotes]National Interest.[close quotes] PDVSA became the wholly government-owned holding entity, encompassing 26 subsidiaries and affiliates. Other energy segments, particularly coal and petrochemicals, were not included in the law and since 1984 several associations with non-governmental entities have been established in Venezuela and very valuable experience has been garnered. Similarly, partnerships and acquisitions have been made in Europe and USA, mostly in refining, through PDVSA. The international petroleum industry foresees a modest, but steady increase in production during the coming decade, particularly in the second half of the nineties. This effect, added to the globalization concept, is making the traditional vertically integrated oil companies look for diverse [open quotes]lateral[close quotes] associations between groups, private and/or state owned with common interests, that will give greater security to sources of supply and market share.

• OSTI ID: 6107347
• Report Number(s): CONF-930306--
• Conference Information: Journal Name: AAPG Bulletin (American Association of Petroleum Geologists); (United States) Journal Volume: 77:2
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020200* -- Petroleum-- Reserves
Geology
& Exploration
020400 -- Petroleum-- Processing
020700 -- Petroleum-- Economics
Industrial
& Business Aspects
CARBONACEOUS MATERIALS
COAL
COOPERATION
DEVELOPED COUNTRIES
DEVELOPING COUNTRIES
ENERGY SOURCES
ENERGY SUPPLIES
EUROPE
FOSSIL FUELS
FUEL SUPPLIES
FUELS
GOVERNMENT POLICIES
INDUSTRY
INTERNATIONAL COOPERATION
LATIN AMERICA
MARKETING
MATERIALS
NORTH AMERICA
PETROCHEMICALS
PETROLEUM INDUSTRY
PETROLEUM PRODUCTS
PROCESSING
PRODUCTION
REFINING
SECURITY
SOUTH AMERICA
USA
VENEZUELA