Oil and gas pipeline construction in Venezuela

Venezuela's state oil company (PDVSA) said recently that Venezuela's oil exports are now 2.4
million - 2.5 million barrels per day, crude oil production is about 2.85 million barrels per day.
PDVSA has announced an ambitious goal, the national production doubled in 2019, up to 6
million barrels per day. Insiders expect the goals to be achieved, of which 4 million barrels per day
from the Orinoco heavy-oil belt.
It is reported that the Venezuelan economy gets into a severe recession, about 96% of export
revenues from oil, the increase of crude oil output to help the government relief.
As the growth of the Orinoco heavy-oil belt production, Venezuela's future production will
increase.
Orinoco heavy-oil belt production is 50000 barrels per day, by the end of 2015 the region's overall
output is expected to reach 1.483 million barrels per day.
Venezuela is one of the largest countries in the world's proven natural gas reserves, the domestic
natural gas demand is quite low (1999 annual consumption is about 1 trillion cubic feet of about
30 billion cubic meters), this is mainly because Venezuela to vigorously develop hydro-power,
thus natural gas is unable to spread in the field of power generation. About 60% of the country's
natural gas production depends on the oil industry consumption, namely put into fields or vent
combustion; Power consumption 10%; 6% used in petrochemical industry. The other mainly
supplied to big city industrial and commercial users.
As part of the countries to reduce dependence on oil, Venezuela's government plans to increase gas
production and consumption in coming years.
According to data provided by the Venezuelan oil company, Venezuela's abundant natural gas
resources, gas reserves of more than 146 trillion cubic feet (4 trillion cubic meters), which has
proven reserves of gas 1.96 trillion cubic meters, ranked first in Latin America, the eighth in the
world.
According to the Venezuelan officials predicted, natural gas will be in the next few years one of
the largest energy consumption. At present, Venezuela's gas production is 200 million cubic meters
a day, it is mainly used for power generation, petrochemical industry and urban residents of
liquefied petroleum gas supply. With the improvement of gas production, gas can not only meet
the needs of its growing domestic, but also help some "brothers" to relieve the energy crisis,
promote its economic and social development.
Venezuela is actively promoting development and utilization of natural gas resources, recently
published gas development planning, 10 years to improve the gas production, investment
committee in the next five years in the field will amount to $55 billion, to promote the
diversification of energy development and structure.
Venezuela plans to invest $10 billion over the next 10 years, the production increase of 2.6 billion
cubic feet of natural gas, daily transport capacity increase of 1.5 billion cubic feet, natural gas
reserves, an increase of 20 trillion cubic feet.
Venezuela's continental shelf, the main natural gas development project including delta gas plan,
sucre marshal of liquefied natural gas (LNG) plan, Anaheim, natural gas field development project
and lake project, plans to invest $8.73 billion in total. Transport network infrastructure
construction, such as a total investment of 1.24 billion dollars.

During 1999 to 2003, $3.9 billion investment in Venezuela, laying seamless gas pipeline 1449 km,
including one from east to west across the whole territory, 472 km of seamless gas pipelines.
According to the government's plans, from 2014 to 2019, a further $5.3 billion m in Venezuela, to
build 2199 kilometers of natural gas pipeline, makes 80% of its area has a natural gas pipeline
network.
PDVSA is traditionally Venezuela monopoly in the field of natural gas production, foreign
companies such as shell) must also have joint venture with PDVSA operation.
In August 1999, however, Venezuela is open to the foreign investment law of natural gas
exploration, production, distribution, transmission and gasification field (but not in the same area
have exploration, production, transmission power).
Venezuela's existing natural gas pipeline infrastructure including 3000 miles seamless steel pipe,
the country is now require foreign investors to help the expansion of the existing network. In order
to reduce the national mean dependence on oil, Venezuela's plans to build at least ten years seven
new pipeline (with a total investment of $80-10 billion).