Volume 2, issue #1 - 15-01-1997

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PDVSA 1997 investment plan

Jan. 4, 1996 Venezuelan PDVSA will invest about $ 6.7 bn in 1997, the company announced. According to a PDVSA communiqu‚, the figure was almost $ 1 bn lower than originally anticipated as a result of efforts "to reduce inflationary pressures" on the nation's economy. The corporation plans on using most of its investment to boost exploration and production activities in 1997, aimed at meeting the growing market demands. Next year PDVSA will develop an intense exploration program to make up for the declining fields and to increase its crude oil reserves. The program will be strengthened with the drilling of new wells and applying secondary recovery methods and steam injection. As a result, proven crude oil reserves in 1997 are expected to increase to about 68.2 bnb, an estimated 2.6 bnb above the 1996 level. Natural gas reserves are expected to rise to 24 bnboe. In addition, refining operations are expected to grow with capacity set to rise to about 1.9 mmbpd. PDVSA also plans to boost its output of petrochemical products by 301,000 tons, bringing overall production up to 4.5 million tons a year. The nation's petrochemical sales are expected to grow this year by about 21 % over 1996, an estimated 199 % more than in 1995. Output of Venezuela's Orimulsion, will increase to about 4.38 mmt in 1997, with exports set at 4.37 mmt.