PDVSA: Ecuadorian refinery still 'on track'

Eric Watkins
Oil Diplomacy Editor

LOS ANGELES, Dec. 2 -- Venezuela's state-owned Petroleos de Venezuela SA (PDVSA), contradicting earlier remarks by a senior company official, has no plans to change its schedule for the construction of a refinery in Ecuador.

The statement, issued by the Ecuadorian oil and mines ministry, followed a meeting between Ecuadorian oil minister Derlis Palacios and Venezuelan energy and oil minister Rafael Ramirez who confirmed his country's commitment to execute the project.

Work on the joint-stock Refineria del Pacifico, held 51% by Ecuador's state-owned Petroecuador and 49% by PDVSA, is scheduled to start in 2010 and operations are expected to begin by 2013.

The Ecuadorian statement followed media reports concerning a revision of the projected investments of PDVSA abroad due to the fall of international oil prices. The media reports specifically mentioned the refinery project in Ecuador and another one Nicaragua.

Elogio Del Pino, a PDVSA vice-president, told the Venezuelan newspaper El Nacional in comments published on Nov. 29 that PDVSA would reevaluate funding for some international projects, while its investment in the domestic oil industry would remain unchanged.

"The idea is to maintain investment in the country, because our idea is to have between 300,000 and 400,000 barrels (of oil) per day of potential—so that when the rebound in oil prices comes…we can then open up that production," Del Pino told El Nacional.

"International investments like the refineries in Ecuador and Nicaragua are under evaluation," Del Pino said, adding that, "We're asking to look for financing" to help pay for the 300,000 b/d refinery in Ecuador and the 150,000 b/d facility in Nicaragua.

Nicaraguan officials have issued no comment concerning Del Pino's remarks about the planned facility in their country. But his statement about the need for additional financing was in line with earlier remarks by officials involved in the Ecuadorian project.

In September, reports said that PDVSA and Petroecuador would jointly finance just under one-third of the estimated $6-10 billion cost of the Ecuadorian refinery, expecting that the outstanding amount would be financed by other countries.

Carlos Albuja, head of Petroecuador unit Petroindustrial, said the two state firms would "finance 30% of the cost. Countries such as England and China, among others, are interested in financing the remainder."

Since then, a memorandum of understanding has been forged between Iran and Ecuador for the revamp and modernization of Ecuador's refineries. Under the MOU, a refinery will be constructed, to be cofinanced by Iran, Ecuador, and Venezuela (OGJ Online, Sept. 22, 2008).

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

South Africa’s Enref refinery due maintenance

07/06/2015 Engen Petroleum Ltd. will shut down its 125,000-b/d Enref refinery in Durban, South Africa, for planned maintenance beginning on July 9, the compan...

Emerging producers offered guidelines for governance

07/06/2015 Like most worthy endeavors, governing oil and gas activity at the national level is easier said than done-especially where oil and gas never before...

Nelson-Farrar Quarterly Costimating Indexes for selected equipment items

07/06/2015 The Nelson-Farrar refinery construction index rose to 2,475.6 by December 2012 from 2,467.4 in January of the same year. The index continued to ris...

Newfoundland, Labrador prepare for deepwater exploration

07/06/2015 Canada-Newfoundland and Labrador Offshore Petroleum Board's (C-NLOPB) most recent call for bids for the Eastern Newfoundland Region is coming to a ...

Oman lets contract for Sohar refinery unit revamp

07/06/2015 Oman Oil Refineries & Petroleum Industries Co., has let a contract to MAN Diesel & Turbo SE, Augsburg, Germany, for work related to the ove...

Group suggests principles for Alberta royalty review

07/06/2015 The Canadian Association of Petroleum Producers (CAPP) has suggested that four principles guide Alberta in an oil and gas royalty review planned by...

Gas faces more competition from coal, renewables, IEA official says

07/06/2015 Natural gas faces growing competition from coal and renewable energy sources at a time when its potential demand growth is slowing down, an Interna...

Case for Keystone XL has grown stronger, TransCanada tells Kerry

07/06/2015 Canada is taking strong steps toward combating climate change, and the proposed Keystone XL pipeline crude oil pipeline remains in the US national ...

Global oil glut continues despite increasing demand

07/06/2015 A year since crude prices plunged, oversupply lingers, evident in a record-setting stock build, as production by members of the Organization of Pet...
White Papers

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by
Available Webcasts


OGJ's Midyear Forecast 2015

When Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

When Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST



On Demand

Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected