Bloomberg News

PDVSA Said to Require $13 Billion for Light-Oil Output Increase

October 13, 2011

Oct. 13 (Bloomberg) -- Petroleos de Venezuela SA expects to increase production at existing oil fields by 250,000 barrels a day in its joint ventures through 2015 for a total investment of $13 billion, a company official said.

State oil producer PDVSA and China National Petroleum Corp. have secured a $4 billion loan from China Development Bank Corp. that will finance 40 percent of the increased production target, the official, who isn’t authorized to speak publicly, said today in Caracas.

An increase in production at existing fields is “imperative” for the company, he said.

PDVSA President and Oil Minister Rafael Ramirez told partners such as Chevron Corp., Petroleo Brasileiro SA and Eni SpA in February to boost declining output at existing fields or risk contract revisions. PDVSA holds at least a 60 percent stake in the more than 20 ventures that were created in 2006 after President Hugo Chavez nationalized the industry.

The China Development Bank loan will be used to boost output at the Petrosinovensa, Petrozumano and Petrosino Venezolana ventures in eastern Venezuela, the official said. Final details of the 10-year loan will be agreed upon by year- end and will include a three-year grace period, he said.

Venezuela wants to increase production of lighter oil to blend with heavier crude pumped from the Orinoco Belt where the Caracas-based company expects to double output to 2 million barrels a day in the next few years, Ramirez said on Oct. 6.

--Editors: Robin Saponar, Jasmina Kelemen

To contact the reporter on this story: Corina Rodriguez Pons in Caracas at crpons@bloomberg.net; Daniel Cancel in Caracas at dcancel@bloomberg.net.

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net


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