Venezuela evaluates Uruguay’'s La Teja Refinery expansion

abarrelfull wrote on 05 Feb 2014 09:07
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10-08-2005

During President Hugo Chávez Frías visit today to the Eastern Republic of Uruguay, strengthening bilateral and regional integration ties, the Minister of Energy and Petroleum of the Bolivarian Republic of Venezuela, Rafael Ramirez Carreño, and the Minister of Industry, Energy and Mining of the Eastern Republic of Uruguay, Jorge Lepra, signed a Letter of Intention to assess Venezuela’s participation in the energy sector of this southern country.

This Letter of Intention shall be performed through State-owned enterprises, Petróleos de Venezuela (PDVSA) and the Administración Nacional de Combustibles, Alcohol y Portland (ANCAP), and provides for exchanging information and carrying out the technical, economic, legal, and political feasibility study for a possible participation by PDVSA in La Teja Refinery expansion, as well as in the processing of heavy and extra heavy crude, and in marketing and supply activities related to such expansion.

Minister Ramirez explained that “this Project will be vertically integrated to the joint development of a block in the Orinoco Oil Belt, aligned with crude needs of la Teja Refinery, and focused on guaranteeing long term supply of products to Uruguay and other countries of the region “Petrosur makes it possible to meet the need for these products of a fellow country, and its South Cone neighbors through Bolivarian integration principles. We are leveraging joint investments and developments in the hydrocarbon upstream sector, in Venezuela, and downstream sector in Uruguay”, added Rafael Ramirez.

La Teja Refinery, located in the capital of Uruguay, currently has a daily processing capacity of about 50 thousand barrels of light crude. As a result of the expansion plan, it would increase this refining capacity in approximately 50 thousand barrels, being able to process heavy and extra-heavy crude from the Orinoco Oil Belt. “Venezuela keeps taking specific steps towards increasing its heavy crude refining capacity”, said the Venezuelan Minister.
First crude shipment to Uruguay

On August 17 of this year, the first Venezuelan crude shipment will arrive in Uruguay, pursuant to the Caracas Energy Cooperation Agreement signed by Presidents Tabaré Vásquez and Hugo Chávez on March 2nd, 2005.

This first shipment contains 933 thousand barrels of Leona, Mesa and Santa Bárbara type crude. 25% of the payment due for this shipment shall be financed on a long term basis, and the remaining 75% shall be paid in 90 days. Part of this 75% could be exchanged for goods and services required by Venezuela, such as cement, alcohol, and technical assistance in other areas in which Uruguay has many strengths.

• Venezuela evaluates Uruguay’s La Teja Refinery expansion

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