Transcript Template

VENEZUELA - Extra Heavy Oil Projects
Faja del Orinoco (Orinoco Belt):
Hamaca Project
McCloskey Petcoke Conference
Houston, Texas
July 2004
Venezuela
COUNTRY OVERVIEW
President: Hugo Chávez Frías (since December 1998)
Population (2001E): 23.9 million
Size: 352,144 square miles, slightly more than twice the
size of California
Major Cities: Caracas (capital), Maracaíbo, Valencia,
Maracay, Barquisimento
Languages: Spanish (official), Indian dialects in the
interior
Source: EIA Country Analysis Brief - April 2002
Political and Economic Environment
• Venezuela is continuing to experience political and
economic/financial turmoil.
• The minimum required signatures for a Presidential Recall were
finally accepted after months of political fighting and deliberate
reconfirmation of a sizable number of signatures.
• August 15, the designated Recall voting date, and events leading
to such, and subsequent consequences, may develop into
significant political crisis.
• The December 2002 strike and aftermath continue to
substantially affect the oil sector and private business
• The Venezuelan economy is extremely oil-dependent.
--Oil accounts for more than three-quarters of total Venezuelan
export revenues, about half of total government revenues, and
about one-third of gross domestic product.
Venezuela Foreign Investment
• During the 1990’s, until 1998, the Venezuelan government pursued a
policy of apertura (opening), encouraging foreign investment.
• Chávez has followed a very different policy.
— It is unlikely that any new oil licensing rounds will be held in the near future.
— The government has pledged to respect all existing contracts.
— Privatization of PdVSA is banned by the 1999 constitution.
• A new hydrocarbons law was decreed in November 2001.
— Royalty rates on oil production have been increased from 16.6% to 30% (well above the
worldwide industry average).
— Projects that can prove that they would not be financially viable at the 30% rate will be
allowed a lower rate of 20%.
— PdVSA must hold a 51% stake in any new exploration and production agreement.
Financial and legal implications are enormous.
— Separate legislation for gaseous hydrocarbons does not restrict foreign participation.
Venezuelan Foreign Investment
But …..
As a result of the December 2002 and subsequent periodic
personnel and responsibility adjustments resulting in lack of
significant core professionalism and decision makers, Pdvsa
continues to be significantly impacted and the Venezuelan
government needs the private oil sector as much as ever
Orinoco Belt
A Significant Resource
CARIBBEAN SEA
JOSE
PUERTO LA CRUZ
Orinoco Belt:
1.2 Trillion BBLs OOIP
Km 52
200 Km
36” / 20 “
156 Km
42” / 20 “
CERRO NEGRO
PETROZUATA
25 Km
26” / 12 “
SINCOR
SINCOR
MACHETE AREA
Sources: JS Herold/PDVSA/WoodMac
65 Km
30” / 20 “
PTO
134 Km
30” / 20 “
PETROZUATA
HAMACA AREA
ZUATA AREA
CERRO NEGRO
NEGRO
CERRO
AREA
Venezuela Extra Heavy Oil Projects
PROJECT
OWNERSHIP
PERCENTAGE
PRODUCTION
Petrozuata
ConocoPhillips
50.1%
2000
PDVSA
49.9%
Cerro Negro ExxonMobil
Sincor
Hamaca
41.67%
PDVSA
41.67%
Veba
TotalFinaElf
16.66%
47%
PDVSA
38%
Statoil
15%
ConocoPhillips
40%
ChevronTexaco
30%
PDVSA
30%
2001
2002
2004 (E)
Hamaca Project Overview
Project Facts:
Source: Petrolera Ameriven
Caribbean
Caracas
Upgrader @
Jose Industrial Site
Puerto
La Cruz
165 km
Drilling
Bare Operations
Center
(COB)
Reservoirs
• 2.2 billion recoverable 8-9º
API crude that will be
upgraded to 26 º API crude
• Initial Development
Production of Merey type
crude started up on October
1, 2001
Batching
Facilities
(PTO)
75 km
• 35 billion barrels OOIP in
the Hamaca blocks (658 sq.
km located in the Orinoco
Belt )
Caracas
Puerto
La Cruz
Hamaca
• 180 MBOPD sustained
Commercial Production will
be achieved by the third
quarter of 2003
a
Orinoco River
• Total project investment is
forecast at $3.8 billion
Jose Industrial Complex
CARIBBEAN SEA
N
Solids Jetty
Crude Loading
Platform
INDUSTRIAL
SERVICE
PLANTS
PETROCHEM.
COMPLEX
SOLIDS
HANDLING
(COMMON)
CRYOGENIC
COMPLEX
Petrozuata
178 ha.
Gas Station
Pig Launching
CRUDE
OUTLET
S-8
S-7
S-6
Sincor
214 ha.
PETROCHEMICAL
Expansion
455 ha.
S-5
S-4
S-3
Cerro Ameriven
Negro
I
128 ha.
CONDOMINIUM
BITOR
161 ha.
109 ha.
S-2
219 ha.
AREA
Reserved
Area
TANK FARM
Strategic
Associations
Rómulo Betancourt Highway
CIED
PALMICHAL
S-1
30 ha.
Commercial
Support
Nat’l Guard
JIC Access Control
Hamaca Upgrader Configuration
Natural Gas Hydrogen
58MBD Naphtha Diluent
Diluted
Crude
248
MBD
LVGO
Vac
Unit HVGO
165
MBD
190 MBD
Hamaca
Bitumen
HAMACA
FIELD
(H Block)
1000F+
Residue
MVGO 18MBD
170
MMSCFD
HydroTreater
Atm
Distillates
Unit
248
MBD
Plant
Make-up Diluent
H2
(1400 psi)
60MBD
Coker
C5-645F
HydroCracker
Hydrogen
Recovery
& Blending
Delayed HCGO (2000 psi)
55MBD
Coker
62MBD
Coke
4040
ST/D
Hamaca Blend
1000F+ 42MBD
180 MBD
26 API
1.6% S
23% 1000F+
Petcoke Quality Expectation and Volumes
• Hamaca petroleum coke output - 1.2 MM TPA (approx).
• Coker feedstock: Orinoco Faja bitumen vacuum residue.
• Design Quality:
Specification
S
HGI
Va
Ni
Hamaca Design Quality
Actual Faja Coke Quality (*)
<5.0
30-40
2000 PPM
500 PPM
4.0 – 4.3%
Plus 50
2800 PPM
400 – 500 PPM
(*) Petrozuata, Sincor and Cerro Negro
Venezuela Extra Heavy Oil ProjectsPRODUCTION
PROJECT
Petrozuata
MMT/YR
1.24
Cerro Negro
0.85
Sincor
2.2
SOLD TO
TERMINAL
Koch Carbon
(80%)
Petrozuata
Various (20%)
TCP
SSM Petcoke
(50%)
Petrozuata
Sincor
TCP (50%)
Hamaca
1.2
SSM Petcoke
(67%)
Cemex (33%)
Petrozuata
Petrozuata Solids Terminal
•
•
•
•
•
•
Bulk Solids Marine Terminal
Draft: 11.8 m max departure draft (salt)
LOA: 254.2 m
Beam: 36.0 m
Hours of Operation: 24 hours
Loading Capacity:
— 20 M mt/d - gearless bulk carrier
— 14 M mt/d - geared bulk carriers
— 1.5-2 M mt/hr instantaneous rate
• Hamaca Storage: Petcoke - 230 M MT
Sulfur - 42 M MT
• Operator: Koch Terminales Solidos del
Caribe (KTSC)
Summary
• Venezuela continues in political turmoil and
economic/financial woes.
— PDVSA Continues to be significantly impacted by the
strike and subsequent political and economic turmoil
— Although denial continues the Government depends
more on private oil sector
• Hamaca will be the fourth of the Orinoco Extra Heavy Oil
Strategic Association projects to be brought onstream.
— The project has as its cornerstone, the 35 billion barrel
(OOIP) Hamaca field.
• Hamaca will produce 1.2 million tons per year of fuel
grade coke commencing in 4th Quarter of 2004
Hamaca Production
vs. Typical Project
Thousand Barrels per Day
200
Hamaca Production
• Higher Up-front Investment
• No Decline
• “Manufacturing” Analogy
• Accessibility
• Reliability/deliverability
• Quality consistency
150
100
50
Typical Production Profile
• Moderate Up-front Investment
• Exponential Decline
0
2036
2031
2026
2021
2016
2011
2006
2001