Financial resources secured to expand the capacity of El Palito and Puerto La Cruz refineries

abarrelfullabarrelfull wrote on 01 Jul 2011 05:57
Tags: pdvsa refinery s-america venezuela

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As part of the strategy of diversifying markets and sources of funding, officials of Petroleos de Venezuela SA (PDVSA) and the Japan Bank for International Cooperation (JBIC) signed an agreement for a credit transaction for an amount of 1,500 million dollars for projects of deep conversion to the refineries in El Palito (REP), and Puerto La Cruz (PLC) located in Carabobo and Anzoategui states, respectively.

In the presence of the People’s Minister for Energy and Petroleum and PDVSA President Rafael Ramirez, the People’s Minister for Planning and Finance, Jorge Giordani and the Vice President of Refining, Marketing and Supply of PDVSA, Asdrubal Chavez, and by the state oil company the Executive Director of Finance Victor Aular signed the agreement. For the Japanese delegation signed the Executive Chairman of JBIC, Toyoaki Fujita and the vice president for the Americas Mitsubishi, Osamu Komiya.

This funding agreement will be provided by the JBIC, with 45% of the estimated and 45% by Japanese commercial banks, 5% by Mitsubishi and 5% by Itochu, who will grant the resources in one payment, with an interest rate equal to LIBOR plus 3.38% and a repayment term of 15 years. In total, eight banks are participating and two Japanese trading houses.

Ramirez explained that this loan, which is part of an additional financing operation from Japanese institutions in our country that was first conducted in 2007, for a total of 3,500 billion dollars, will be honored by Santa Barbara oil supply, refined products and through cash payments.

Advances in deep conversion projects
The 1,500 million dollars that PDVSA will receive, will allow for the completion of the deep conversion project that involves the expansion of refineries El Palito and Puerto La Cruz and implementation of HDH Plus technology, patented by PDVSA Intevep to process heavy and extra heavy crude between 8 and 9 degrees API from the Orinoco Oil Belt, the Venezuela reserve that made it the country with the largest amount of oil deposits worldwide achieving the quantification and certification of 297 billion barrels of oil. The president of PDVSA also explained that in the case of the El Palito refinery it will be increase its processing capacity from 140 thousand barrels per day to 280 barrels per day.

Closure of Consolidated Financial Statements 2010
The head of the ministry for Energy and Petroleum reported that PDVSA Socialista is a company that in 2010 had a revenue of 94,929 billion dollars and a profit of 3,202 billion, after tax contributions in the amount of 58,913 billion bolivars and contributions to social development by 20,549 billion dollars, which makes a sturdy and solid company in the service of the Venezuelan people and the construction of socialism, with a history of contributions to the Nation from 2003 to 2010 of 83,890 billion dollars.

"This is our mission as a national company, contribute to national development, expand our resource base, oil operations, diversify our markets and our sources of financial support," said the Minister.

Moreover, Minister Ramírez also expressed on behalf of the Venezuelan people and Commander, Hugo Chavez, in solidarity with the Japanese people for the situation presented in the archipelago after registering a strong earthquake and tsunami a few months ago.

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