Venezuelan Oil Industries, Monografías, Ensayos de Inglés Técnico

¡Descarga Venezuelan Oil Industries y más Monografías, Ensayos en PDF de Inglés Técnico solo en Docsity! UNIVERSIDAD DE ORIENTE NÚCLEO DE MONAGAS INGLES INSTRUMENTAL II Venezuelan Oil Industries STUDENT: PROFESSOR: LENNY TERAN BELSY RIVAS CORREA ID: 28.080.147 MAY, 2021 Introduction Venezuela, one of the largest oil exporters and with the largest proven reserves in the world, its beginnings in the oil industry date back to 1878 when a group of Venezuelans came together to create and sign the contract for what would be the first oil company in Venezuela "La Petrolia del Táchira", which undoubtedly marked one of the most original and relevant facets of our history and of what would be the most important industry in the country. From then on the road grew, between 1904-1940 the oil boom occurred during the government of Juan Vicente Gómez and soon in our country various foreign oil companies would be in charge of the exploration and exploitation of crude oil until it reached to the point where all the assets of the oil companies were nationalized in 1976 with the birth of Petróleos de Venezuela, SA (PDVSA). Nationalization: Long before 1976, Venezuela had taken various steps in the direction of nationalizing ¡ts oil industry. The reversion law enacted in 1971 stated that all property, facilities and equipment belonging to the concessionaires, inside or outside the concession areas, would revert to the nation without compensation upon expiration of the concession. Decree 832 also established that all the exploration, production, refining and sales programs of the oil companies had to be previously approved by the Ministry of Mines and Hydrocarbons. So, for all practical purposes, Venezuela was already on its way to nationalization in 1972. The nationalization became official in the first presidency of Carlos Andrés Pérez, whose economic plan, "La Gran Venezuela", contemplated the nationalization of the oil industry and the diversification of the economy through import substitution. The country officially nationalized the oil industry on January 1, 1976, and along with it came the birth of Petróleos de Venezuela, S.A. (PDVSA). All foreign oil companies that once did business in Venezuela were replaced by Venezuelan subsidiaries of PDVSA. Then PDVSA mainly carried out the activities of the parent company of the nationalized operating companies, successors of the 13 former private concessionaires existing up to that date: + Amoven (successor to Amoco) + Bariven (successor to Sinclair/ARCO) + Boscanven (successor to Chevron) + Deltaven (successor to Texaco) + Guariven (successor to Petrolera Las Mercedes?, a Venezuelan private equity company) + Lagoven (successor to Creole Petroleum, a subsidiary of Exxon) + Llanoven (successor to Mobil) + Maraven (successor to Shell) + Meneven (successor to Mene Grande Oil, a subsidiary of Gulf Oil) + Palmaven (successor to Sun Oil) + Roqueven (successor to Phillips) + Taloven (successor to Talon Petroleum, a Venezuelan private equity company) + Vistaven (successor to Petrolera Mito Juan?, a Venezuelan private equity company) With the exception of Bariven, Palmaven and Deltaven, all these state operators were gradually integrated and were finally reduced to 3 in 1986 (Lagoven*, Corpoven* and Maraven”). With the creation of the subsidiary Pequiven* in March 1978, PDVSA assumed the leadership of the petrochemical industry. Bariven was converted in 1980 into the company in charge of purchasing equipment and materials abroad; Palmaven assumed in 1987 the distribution of fertilizers in the national market and assistance to agricultural activities, while Deltaven was reactivated in 1997 to absorb the activities of commercialization of fuels and lubricants in the Venezuelan domestic market under the brand name "PDV" control of some of the service stations in the Maraven network. In 1988 PDVSA, together with the subsidiaries INTEVEP, Lagoven and Corpoven, established the company Bitumen del Orinoco, S.A to produce, transport and commercialize Orimulsion fuel. In 1990, PDV Marina was created with the purpose of integrating the human resources, fleet, equipment and maritime operations of PDVSA and its subsidiaries. Petrolera Las Mercedes: It was a Venezuelan company with private capital, forming part of the Oil and Gas Field Services Industry. “Talon Petroleum: It was a Venezuelan oil company with private capital, founded in 1952 by the Venezuelan businessman and engineer Rafael Tudela Reverter. It produced 4,000 barrels of crude per day. “Petrolera Mito Juan: It was a Venezuelan oil company with private capital, founded in 1965 by a handful of Venezuelan businessmen, led by the petroleum engineer Humberto Peñaloza. Myth Juan was totally innovative in the oil business in Venezuela. 5Lagoven: It was a Venezuelan oil company, a subsidiary of Petróleos de Venezuela, which operated the business of exploration, production, refining and commercialization of oil and derivatives in Venezuela for 22 years, from the beginning of its activities on January 1, 1976 until the cessation of the same on December 31, 1997. It had a wide network of service stations distributed throughout the Venezuelan territory, it was also linked -during its existence- to the social and cultural development of Venezuela, through activities of various kinds, as a provider of health services and support for sports and cultural activities. SCorpoven: It was a Venezuelan oil company, a subsidiary of Petróleos de Venezuela, which operated businesses of exploration, production, refining and commercialization of oil and derivatives, as well as all gas operations in Venezuela for 19 years, since the beginning of its activities in December 1978 until their termination on December 31, 1997. It had a wide network of service stations distributed throughout Venezuelan territory. Corpoven has its origin due to the merger of the activities that were separately carried out by the Llanoven and CVP subsidiaries. "Maraven: It was a Venezuelan oil company, a subsidiary of Petróleos de Venezuela, which operated the exploration, production, refining and commercialization of oil and derivatives businesses in Venezuela for 22 years, from the beginning of its activities on January 1, 1976 until their termination on December 31, 1997. The company had a wide network of service stations distributed throughout the Venezuelan territory. In particular, Maraven was created to take control of all the assets, equity and operations owned by Shell de Venezuela (a subsidiary of Royal Dutch Shell in Venezuelan territory) by December 1974. *Pequiven: It is a company belonging to the Venezuelan State, dedicated to the production and commercialization of petrochemical products with export capacity, but giving priority to the national market. Pequiven was created in 1977, assuming the operations of the Venezuelan Petrochemical Institute (IVP), which was founded in 1955. In 1978 it was affiliated with Petróleos de Venezuela. At that time, the Morón (Carabobo) and El Tablazo (Zulia) Complexes were operating and 10 joint ventures were in production. Venezuelan Oil Industry at present: What is PDVSA: Petróleos de Venezuela S.A is the state oil company, created in 1976. It is owned by the Republic of Venezuela and is responsible for the development of the oil, petrochemical and coal industries, in addition to planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. Characteristics: Y” The Bolivarian Republic of Venezuela owns all the shares of the company, which is attached to the Ministry of Popular Power for Energy and Petroleum. Y” The oil company has the largest oil reserves in the world, reaching at the end of 2013, a total certified sum of 298,353 million barrels, which represent 20% of the world reserves of this resource. Y Its activities also include the promotion or participation in those aimed at promoting the integral, organic and sustainable development of the country. Company division and structure: Nynas: In 1986 PDVSA signed an association agreement with Nynás AB Petroleum through which it acquired 50% of the shares of this Swedish company that produces oils and asphalt products, which operates refineries in Sweden, Belgium and the United Kingdom. On May 12, 2020, PDVSA reduced its stake in Nynas to 15% and the other 35% became the property of an independent Swedish foundation. North America: PDV Holding: Subsidiary in the United States of PDVSA ¡is a parent company incorporated in Delaware and headquartered in Texas. PDVH is the indirect shareholder of CITGO Petroleum Corporation. CITGO: It is a company that comprises a group of oil refiners. It refines and transports gasoline, jet fuel, lubricants, petrochemicals, and other petroleum derivatives. PDVSA owns 100% of the property. In February 1986, PDVSA bought 50% of the shares and acquired the rest in 1990. It is currently one of the largest oil companies in the world and the largest PDVSA subsidiary outside of Venezuelan territory. Caribbean: PDV Caribe: It is the company in charge of organizing and coordinating the “Petrocaribe” hydrocarbon transport network, including ships, storage facilities and port terminals, as well as the refining and distribution capacity necessary to execute the Energy Cooperation Agreement signed by 14 countries of the Caribe, promoted by the Government of Venezuela to guarantee the direct supply of oil among its members. This subsidiary was created in 2005 by PDVSA and has stakes - between 25% and 60% - in various subsidiaries established in each of the member countries. Bonaire: Bonaire Petroleum Company (BOPEC): It is a fuel oil storage terminal that was wholly owned by the Venezuelan oil company PDVSA. It functioned primarily as a storage facility for multiple grades of refined and unrefined oils from Venezuela and refineries in Curacao and Aruba. In March 2021 the subsidiary BOPEC declared bankruptcy because it could not pay its debts. ami Petrojam LTD: It is a joint venture that owns the Jamaica refinery; PDVSA owns 49% of this plant. In 2006 PDV Caribe signed an agreement with the Petroleum Corporation of Jamaica, where they agreed to repair the Petrojam refinery in order to increase its processing capacity. A year later, in August 2007, PDV Caribe would share shares of the Petrojam Mixed Company. In February 2018, Jamaica reportedly informed Venezuela of its intention to buy PDVSA's 49% of Petrojam. On June 17, 2019 Jamaica in a confiscation action takes full control of the Refinery. Dominican Republic: Refinería Dominicana de Petróleo PDV, S.A. (Refidomsa PDV): It is a company dedicated to the refining of petroleum and the importation and commercialization of petroleum products. The Dominican state is the majority shareholder with 51% of the shares, and the rest belongs to PDV Caribe, the subsidiary of the Venezuelan state PDVSA. PDVSA currently lost control due to economic and operational difficulties, which were deepened by the sanctions at said refinery. St. Vincent and the Grenadines: PDYV Caribe San Vicente y Las Granadinas Limited: It is a mixed company, the company has a 55% stake in PDV Caribe, the PDVSA subsidiary created to make the Petrocaribe initiative operational, and 45% of the shares are owned by the state-owned Petrocaribe Saint Vincent and The Grenadines Limited. Annexes Annex 1, List of PDVSA joint ventures. 1. Empresa Mixta Baripetrol S.A.: Established in 2006. It operates in the Colón area on the western shore of Lake Maracaibo. 2. Empresa Mixta Boquerón S.A: Located in Campo Boquerón, Monagas state. This joint venture corresponds to an old operating agreement for the exploitation of mature fields. 3. Empresa Mixta Lagopetrol S.A.: B2X-70/80 area of 41.91 square kilometers, Zulia state. 4. Empresa Mixta Petrocabimas, S.A: Joint venture between CVP and the national company Suelopetrol, on the Eastern Coast of Lake Maracaibo, Zulia state. 5. Empresa Mixta Petroboscán S.A: Located in Campo Boscán, Zulia state. This joint venture corresponds to an old operating agreement for the exploitation of mature fields. 6. Empresa Mixta Petrocedeño S.A (old SINCOR): Located in the Orinoco Oil Belt. It operates an extra heavy crude improver in Jose, Anzoátegui state. The shareholding composition of PetroCedeño is as follows: CVP, a subsidiary of PDVSA, (60%), TOTAL S.A of France (30.3%) and the Norwegian Statoil, (9.7%). 7. Empresa Mixta Petrocumarebo S.A: PDVSA 60% and the national consortium VINCCLER (40%), Falcon State. 8. Empresa Mixta Petrocuragua S.A: Constituted by CVP, a PDVSA subsidiary, and Venezuelan companies Cartera de Inversiones Petroleras, C.A (CIP), Operaciones de Producción y Exploración Nacionales S.A OPEN. It operates in the Casma field, Anaco, in the southwest of the Monagas State. 9. Empresa Mixta Petrodelta S.A: Formed between CVP with 60% of the shares and Harvest-Vinccler with 40%. It operates the fields: Temblador (162.98 km2), El Isleño (117.82 km2), El Monagas Sur (244.23 km2) and El Salto (475 km2), in the Monagas state. 10. Empresa Mixta Petroguárico, S.A: mixed Company that operates in the Boyacá division of the Orinoco Oil Belt, a field with an area of 290.25 km2 in the Guárico state. 11. Empresa Mixta Petroindependiente S.A: Constituted in 2010 by PDVSA (60%), Chevron Carabobo Holdings ApS (34%), the Japan Carabobo UK Ltd consortium (5%) and Suelopetrol International S.A. (1%). The company develops the Carabobo 3 project, in the Orinoco Oil Belt, made up of three blocks: C2 South, C3 North and C5. 12. Empresa Mixta Petrokariña S.A: Founded in 2006, with PDVSA (60%), Petrobras (29.2%) and Inversora Mata (10.80%). This is one of the joint ventures of the old operating agreements. 13. Empresa Mixta Petrolera Bielovenezolana S.A: This joint venture between Bielorusia and PDVSA will exploit the Soto, Mapire and La Ceiba fields in Anzoátegui state. Lago) was included. It is the first joint venture with lake and land operations in the West of the country. 33. Empresa Mixta Petrozumano S.A: A company created in 2007 with a 60% stake in CVP and the Chinese company CNPC 40%. It explores and extracts oil and gas in the Zumano field (428.19 kilometers) of the Anzoátegui state. 34. Empresa Mixta VENANGOCUPET S.A: mixed company, constituted by CVP, with 60% and Comercial Cupet S.A. de Cuba and Sonangol Pesquisa « Producao, S.A. from Angola, with a 20% stake each. It operates in the south of Anzoátegui state, in the Ayacucho Division of the Orinoco Oil Belt. 35. Perforosven S.A: Joint venture between PDVSA and Russia's Rosneft with an investment of eight million dollars. It operates in the El Tigrito sector, Anzoátegui state, of the Orinoco Oil Belt. 36. Petrobicentenario S.A: Incorporated between PDVSA with 60% and the Italian ENI with 40%. This company was established to build a refinery in Jose, Anzoátegui state, to produce 350 thousand barrels per day. The refinery will process extra heavy crude, bypassing an upgrader. This project is on hold. 37. PetroCarabobo S.A: Joint venture between Repsol and CVP. Campo Carabobo, Anzoátegui. Orinoco heavy crude belt 38. Petrojunín S.A: Of the previous Strategic Associations of the Orinoco Oil Belt, this company was formed in which PDVSA participates with 60% and 40% of ENI. 39. Petromacareo S.A: Company constituted 60% by PDVSA and 40% by the Vietnamese state company. It operates in located in the Junín 2 Block of the Orinoco Oil Belt. 40. PetroMiranda S.A: PDVSA and Rosnef formed a joint venture for the construction and operation of the natural gas production infrastructure in the Mejillones, Patao and Rio Caribe offshore fields, located in the Paria Peninsula, Sucre state. 41. Petrourica S.A: Company established in 2010 between PDVSA with 60% and the Chinese company CNPC with 40%. 42. Petrovictoria SA: Founded in 2013, it is a joint venture between PDVSA (60%) and the Russian company Rosneft (40%) to develop oil reserves in the Carabobo-2/4 project, in the Orinoco Belt, Venezuela, in a total area of 342 km2 43. Sinovensa, S.A: Created in 2008 by PDVSA (60%) and CNPC (40%). It operates in the Carabobo Division of the Orinoco Oil Belt. This company has in Jose, Anzoátegui, a mixing plant for extra-heavy crude from the Orínoco Oil Belt with diluents and light crude oils. 44. Venezirán Oil Company S.A: company founded in 2010, between PDVSA with 61% and the Iranian company SADRA with 39%. It operates in the Orinoco Oil Belt. Annex 2, images. Company Petrolia del Táchira PDVSA main building 2% PDVSA PDVSA logo Ns SS PDVSA PDV Gas Station (PDVSA subsidiary) qn GAS PDVSA gas logo PDV holding logo El Palito Refinery O, PetroCaribe Energía para la Unión CITGO