Oil Industry In Venezuela

Contents:-

Introduction………………………………………………………….2
History of Oil Industry in Venezuela………………………………..3
Main Oil companies. ………………….….....………………………5
Oil Reserves………………………………………………………….6
Major Oil fields…….…………......………………………………….7
Oil Production……………………………………………………….8
Oil Exports…………………………………………………………..9
Gas Reserves…….……………. ………......……………………….11
Major Gas fields…….……………………….......…………………12
Gas Production…….……………………........…………………….13
Crude Oil Pipelines ………………………………………………...14
Gas pipelines………………………………………………………..15
Refining………………………………………………………….....16
Major Terminals……………………………………………………18
Petrochemicals……………………………………………………..18
Tarsand…………………………………………………………….20

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 Oil Industry In Venezuela

Introduction:-
Venezuela is situated in the north side of South America. It has
borders with the Caribbean Sea and the North Atlantic Ocean,
between Colombia, Brazil and Guyana (as shown in the figure), With
an area of 912,050 Km2 (352,143 miles2), Venezuela has reached a
population of 25,375,281 in July 2005.
Venezuela independence in 5th of July 1811 (from Spain), and
the government is federal republic.
Venezuela contains some of the largest oil and natural gas
reserves in the world.

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 Oil Industry In Venezuela

History of Oil Industry In Venezuela:

1917:- The first commercial drilling of petroleum.

From 1924 to 1934:- Oil jumped from 31% of exports to 91%.

1935:- The government and foreign oil companies engaged in a tug-

of-war over taxation, regulation and ultimately ownership.

1974:- A national commission created by President Perez delivered

a proposal for nationalization.

1975:- This proposal formed the core of 1975 law that nationalized
the oil industry.

1977:- The government created a holding company, PDVSA, to serve

as the umbrella organization for four major petroleum-producing
affiliates.

1980:- PDVSA launched further drilling operations in the late of

1980 with the goal of adding 14.4 billion barrels of light and medium
crude to its proven reserves by 1993.

1984:- Start of injection wells because reservoir pressure decline.

1986:- After oil prices dropped nearly 50% the government

accelerated industrial diversification programs in specialized
petroleum refining, natural gas, petrochemicals and mining and also
stepped up oil exploration efforts.

1988:- Venezuela for the first time exported more refined petroleum
than crude.

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 Oil Industry In Venezuela

1990:- Venezuela ranked as the third leading oil exporter, after

Saudi Arabia and Iran, (contained at least 7% of proven world oil
reserves).
1995:- OPEC & Venezuela decided to double Venezuela’s daily
production.

1998:- President Chavez has maintained a policy of strong

adherence to the country’s quota, seeking to increase oil revenues
through higher world oil prices rather than increased production.

2003:- Oil production decline because PDVSA strike.

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 Oil Industry In Venezuela

Main Oil companies:-

Venezuelan Companies Foreign Companies

PDVSA British Petroleum, BP

Corpoven ChevronTexaco

Meneven ConocoPhillips

Maraven ExxonMobil

Lagoven Repsol-YPF

--- Shell

--- Total

--- Petro-Canada

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 Oil Industry In Venezuela

Oil Reserves ‫׃‬-

Venezuela had 79.7 billion barrels of proven conventional oil reserves

(January 2006), the largest amount in the Western Hemisphere. This
estimate, however, does not include substantial extra-heavy and bitumen
deposits, which could be as high as 270 billion barrels.

Venzuela Oil Proven Reserves

90
Reserves (MMM bbl)

80
70
60
50
40
30
20
10
0

1980 1985 1990 1995 2000 2005

Year
Venzuela Oil Proven Reserves

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 Oil Industry In Venezuela

Major Oil fields:-

The table below shows the major Oil and Gas fields :-

Major Oil Fields

Field Name Ultimate Recovery Oil

(MMM bbl)

Bolivar Coastal 31

Tia Juana 13.39

Bachaquero 8.98

Lagunillas 6.39

Hamaca Area 5.408

Carito 3.98

Furrial-Musipan 2.7

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 Oil Industry In Venezuela

Oil Production:-
Venezuela was producing 3.1 million barrels per day (bbl/d) of
crude oil in 2004.

Oil Production
4000

3000
Production(Mbbl\day)

2000

1000

1960 1965 1970 1975 1980 1985 1990 1995 2000

Year

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 Oil Industry In Venezuela

Oil Exports:-
Venezuela exported 2.36 million bbl/d of oil and petroleum
products in 2004 The United States is the most important destination for
these exports, receiving 68 % of total oil exports in 2003. In recent
years, Venezuela has ranked consistently as one of the four top sources
of U.S. petroleum imports.

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 Oil Industry In Venezuela

Top World Oil Producers, and Exporters, 2004:-

Total oil Net oil

Producers Exporters
production exports

1. Saudi Arabia* 10.37 1. Saudi Arabia* 8.73

2. Russia 9.27 2. Russia 6.67

3. United States 8.69 3. Norway 2.91

4. Iran* 4.09 4. Iran* 2.55

5. Mexico 3.83 5. Venezuela* 2.36

6. China 3.62 6. UAE* 2.33

7. Norway 3.18 7. Kuwait* 2.20

8. Canada 3.14 8. Nigeria* 2.19

9. Venezuela* 2.86 9. Mexico 1.80

10. UAE* 2.76 10. Algeria* 1.68

Table (1), Millions of barrels per day

NOTE: *OPEC members.

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 Oil Industry In Venezuela

Gas Reserves:-
According to Oil and Gas Journal, Venezuela had 151 trillion cubic
feet (TCF) of proven natural gas reserves in 2004, the second largest in
the Western Hemisphere (behind the United States) and the ninth largest
in the world. In 2004, as an estimated 90 percent of gas resources are
associated, (see Figure).

Gas Reserves
160
140
120
Reserves (TCF)

100
80
60
40
20
0
1960 1965 1970 1975 1980 1985 1990 1995 2000

Year

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 Oil Industry In Venezuela

Major Gas fields:-

The table below shows the major Gas fields:-

Major Gas Fields

Ultimate Recovery Gas

Field Name (TCF)
 

Carito 10.9

Patao 10

Furrial-Musipan 4.8

Yucal-Placer 4.4

Mejillones 3

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 Oil Industry In Venezuela

Gas Production:-
Venezuela produced 1.05 TCF of natural gas, while consuming the
same amount.

Venezuela’s Natural Gas Production and Consumption, 1980-2003.

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 Oil Industry In Venezuela

Pipe Lines:-

Crude Oil Pipelines:-

Crude Oil Pipelines in Venezuela

At the End of Year-2004
Owner
Length Diameter
From/To or
(Miles) (Inches)
Operator
Ule (Zulia)/Amuay (Falcon) PDVSA 117 ,143 26
Bachaquero/Puerto Miranda
PDVSA 2 x 67 30,30
(Zulia)
T. Pta Palmas/Puerto Miranda PDVSA 42 24
T. Pta Lagunillas/La Salina PDVSA 26 34
Puerto Miranda/Cordon(faclcon) PDVSA 141 30
E.V. Mata Larga/P.T.Silvestre PDVSA 188 20
Silvester/ El Palito PDVSA 214 20
Travieso/Puerto La Cruz PDVSA 95 26
Temblador/Caripito (Monagas) PDVSA 97 23
Morichal/Puerto Ordaz (Bolivar) PDVSA 44 26
P.T. Ancona/Puerto La Cruz PDVSA 62 16
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 Oil Industry In Venezuela

Palmarejo/Cardon (Falcon) PDVSA 153 30

Barinas/El Palito (Carabobo) PDVSA 210 20
Guasdualito/Barinas (Barinas) PDVSA 141 20
Oficina/Puerto La Cruz PDVSA 97 30
Oficina/Anaco PDVSA 36 16

Gas pipelines:-

Gas Pipelines in OPEC Member Countries

At the End of Year-2004
Owner
From/To or
Length Diameter
(Miles) (Inches)
Operator
Anaco/Puerto La Cruz PDVSA 157 20
Anaco/Barquisimeto PDVSA 1380 26
Santa Barbara/Pigap PDVSA 2X106 36,36
Santa Barbara/Soto PDVSA 106 36
Orillas lago/Amuay refinery PDVSA 2X144 16,20
Puerto Miranda/La Paz PDVSA 38 20
Puerto Miranda/Punto Fiso PDVSA 136 20/22
Casigua/La Fria PDVSA 47 8
Lama/Bajo Grande PDVSA 40 14
Pctj-Pagline PDVSA 57 12
Ule/Amuay PDVSA 294 8/16/20

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 Oil Industry In Venezuela

Refining:-
PDVSA operates one of the largest refining networks in the
Western Hemisphere.
According to OGJ, Venezuela has 1.28 million barrels per day
(bbl/d) of crude oil refining capacity, all operated by PDVSA.

Capacity
Refinery Name
bbl/d

Paraguana Refining Center 955,000

Puerto de la Cruz 195,000

126,900
El Palito

San Roque 5,200

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 Oil Industry In Venezuela

Refinery
Production and
Consumption:-

1600
Exports
1400
1200
1000
Mbbl\day

800
600
400
200
0
1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004

Year
Production Consumption

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 Oil Industry In Venezuela

Major Terminals:-
Amuay Bay, Tia juana, Guiria and Guanta.

Petrochemicals:-
There are three major petrochemical complexes in Venezuela were at El
Tablazo in Zulia, Moron in carabobo, and Jose in Anzoategue.
El Tablazo, traditionally the largest complex produced Ammonia, Urea,
Polystyrene, Ethylene and Propylene.
The Moron plant, the site of the country's first commercial fertilizer
production, also fabricated chlorine, caustic soda and Sulfuric acid all
used in heavy industry.
Jose was scheduled to manufacture liquefied natural gas, methanol and
methyl tertiary butyl ether (MTBE).

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 Oil Industry In Venezuela

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 Oil Industry In Venezuela

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 Oil Industry In Venezuela

Tar sands, also referred to as oil sands or bituminous sands, are a

combination of clay, sand, water, and bitumen, which will not flow
toward producing wells under normal conditions, making it difficult and
.expensive to produce

Tar sands deposits are found in over 70 countries throughout the world,
but three quarters of the world's reserves are in two regions, Venezuela
.and Canada

There are vast heavy oil deposits (defined here in to be all the liquid
petroleum resource less than 200 API gravity) in Venezuela and Canada.
In both cases, these resources are found largely in unconsolidated
sandstones with roughly similar geomechanical and petrophysical
.properties

 The world’s two largest oil deposits are the heavy and extra
heavy oil deposits of Venezuela and Canada.

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 Oil Industry In Venezuela

 The magnitude of the resources in the two countries is vast

probably on the order of 3.5 – 4 trillion barrels of oil in place (bbl
OOIP).

Each country has total in place heavy oil reserves

1.2 – 2.5*1012bbl.

 70% of it is in category of less than 200 API oil in

unconsolidated sandstone reservoirs less than 1000m deep.
Approximately 15% is less than 100 API is 10 – 20 API oil, and
55% is less than 100 API often called extra-heavy oil or bitumen.

 A total in place reserve is not a recoverable reserve, furthermore

the amount that can be recovered depends on technology evolution.

 The recoverable oil values change with time generally becoming

an ever and ever higher percentage of the OIIP.

 The magnitude of Canadian and Venezuelan deposits has been

known since at least the middle 1970’s.

 To maintain oil production it was necessary to move toward

heavy oil and oil sand development sooner than in Venezuela.

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 Oil Industry In Venezuela

 The developments in Canada should increase heavy oil and oil

sands production by at least 800000 bbl\day by 2006 and perhaps
more if the price of oil above 20 $\bbl.

The dominant of U.S companies of Venezuelan tar sand deposits.

In Venezuela there are four projects in Orinoco deposit:-

1. Cerro Negro project, operated by Exxon-Mobil.
2. Ameriven project (Hamaca), operated by Philips and Texaco.
3. Petrozuata project, operated by Conoco.
4. Sincor project, co-operated by totalFinaElf, Stateoil and
PDVSA.

These four projects, representing and investment of about 14 billion

USA $ and will produce approximately 700000 bbl\day by 2006.

 New production Technologies:-

Method Year Status(2001) Suitability

Best for 5-20 zones,
$$$-fully
CHOPS >10 no mobile water, no
commercial
water legs
Probably limited to
SAGD ~6-8 $- profitable
thicker zones, >15-20
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 Oil Industry In Venezuela

Useful with other

PPT 2 $$$- early days methods ( cold flow,
CHOPS )
? No field trials Best in >200API cases,
VAPEX 0
yet or as a SAGD adjunct
We will see what
THAI 0 “ “
happens soon

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 Oil Industry In Venezuela

-:Comparison between LUSELAND and FAJA

RESERVOIR&FLUID LUSELAND FAJA

CHARACTRISTICS
Depth, ft 2394 1476-2132
Avg. Porosity, % 30 31
Sw, % 28 14
Permeability, D 2-4 5-15
Thickness of each sand body, ft 10-50 20-80
API 11-13.4 8-10
Viscosity, cp 1400 1000-5000

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 Oil Industry In Venezuela

Reference

 Giant Oil & Gas Fields.

 Web Site:-
www.eia.doe.gov
www.bp.com
www.opec.com
www.ogj.com

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