Bloomberg: Venezuela expects oil exports to China to soar five-fold by 2012
In a dispatch from Caracas, Bloomberg writes: Petroleos de Venezuela (PDVSA) ... South America's largest oil company ... expects its exports to China to rise fivefold by 2012 as it seeks to lessen its dependence on the US market.
Sales of crude oil and petroleum products to China may top 300,000 barrels within years, the state oil company said in a press statement.
In an interview, PDVSA board member Asdrubal Chavez said the company expects to reach the 300,000-barrel a day mark by 2012. "China has many opportunities for us,'' said Chavez -- who is a cousin of President Hugo Chavez -- accompanying Energy & Oil Minister Rafael Ramirez on a tour of China and Japan, which started Saturday.
President Chavez has repeatedly said that he wants Venezuela (the world's fifth-largest oil exporter) to diversify its customers and reduce its dependence on the US market which currently takes about 60% of Venezuela's daily exports of about 2 million barrels a day.
Venezuela's oil and product exports to China averaged only 12,300 barrels a day in 2004.
The majority of Venezuela's exports to China as of now consist of Orimulsion, a boiler fuel alternative, Asdrubal Chavez said. The fuel is comprised of bitumen and water, and is burned by power plants to generate electricity.
Tanker Transport
The distance between China and Venezuela remains an obstacle for exports ... tankers need 43-44 days to reach China from Venezuela if they go via Africa. From Panama, the trip would be 24-25 days. Venezuela is already exploring constructing pipelines across Colombia or Panama to shorten shipping times since most large tankers can't use the Panama Canal due to size restrictions.
PDVSA has today opened a sales office in China ... its first in Asia ... which will be used to evaluate opportunities in exploration and production as well as refining. Ramirez, who is also PDVSA president, said "This office will also strengthen ties between the two countries.''
Fleet Expansion
PDVSA also plans to spend up to $2.2 billion on tankers through 2012 to double its fleet and enable it to send more oil to Asia ... it wants to buy 42 tankers, including at least 14 supertankers to implement its current fleet of 21 tankers, enabling it to carry 26% of Venezuela's oil exports. "With the new tankers, we'll be able to carry 45% of exports in 2012!''
Venezuela plans to spend US$56 billion through 2012 to about double its oil production capacity to 5.1 million barrels a day ... it is now producing about 2.6 million barrels a day. |
