Chavez’s Into Africa Tour…

Several interesting tidbits from this Energy Daily analysis, namely, Chavez’s continued engagement with African oil-rich nations and PDVSA’s plan to create its own equipment/services division to help address declining production resulting from equipment shortages. It is not clear how Venezuela can balance their equipment shortfalls at home while pursuing an ambitious international growth plan, but I suspect that one or the other will get trimmed as the constraints become more real.

“Venezuelan President Hugo Chavez will visit Namibia next month, possibly hoping to secure a deal that would give his country’s state-run energy company a leg up on other nations seeking untapped oil potential in Africa…

His announced visit to Africa in September follows the recent decision by Venezuela to create its own “Halliburton-style company” … set to be operated by state-run energy firm PDVSA, which would allow the country to control oil extraction and production from beginning to end and provide services to regional countries.

Last month Luis Vierma, exploration and production vice president at PDVSA, said Venezuelan oil faces a “significant operational emergency” if it does not increase the number of rigs operating in the country and that the state firm fell short of its 2007 goal of getting 191 rigs online in 2007 and producing some 3.3 million barrels per day.

“Venezuela is moving toward technological independence, but it will take a long time,” he said.

PDVSA’s independence could take even longer considering Venezuela’s oil output is believed to have slipped by more than 250,000 barrels per day from a year ago, according to the Paris-based International Energy Agency. Production has reportedly decreased from 2.6 million bpd to 2.37 million bpd.

In an effort to reverse the production shortfall, PDVSA announced recently it was investing $3.5 billion in new oil rigs, a much-needed injection of cash for improvements to a sector that some experts say has been abused by Chavez for his social programs.

This entry was posted on Friday, August 24th, 2007 at 6:53 am and is filed under Namibia, Petróleos de Venezuela, Venezuela.  You can follow any responses to this entry through the RSS 2.0 feed.  Both comments and pings are currently closed. 

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