INFORME PETROLERO DE VENEUELA 2011

7/30/2019 INFORME PETROLERO DE VENEUELA 2011

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RESEARCH REPORT

FORWARD

VENEZUELA:

OPPORTUNITIES FOR

THE NON FAINT OFHEART INVESTOR


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RESEARCHREPORTFORWARD:VENEZUELANINVESTMENT

OPPORTUNITIES

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RESEARCH NOTE

South America

9 November 2012

Energy Analytics

Institute (EAI)

15227 Oak Terrace Drive

Houston, Texas 77082

T. 1.832.387.0183

Venezuelan satellite

office contact:

58.416.403.8945

Follow us on Twitter

@EnergyAnalyInst

Investments

Opportunities

for the Non Faint

of Heart Investor

FORWARD TO RESEARCH REPORT

Venezuelas energy situation continues to attract the

attention of investors worldwide. The country is blessed

with an abundance of natural resources of which crude oil

and natural gas are of utmost interest to companies and

countries with large energy demands.

At the end of 2011, Venezuelas oil reserves amounted to

297,571 million barrels or MMbbls (of which 258,939

MMbbls were classified as heavy and extra-heavy oil and

located in Venezuelas Orinoco Heavy Oil Belt, also known

as the Faja), while its oil production amounted to 2,991

thousand barrels per day (Mb/d) which resulted in a

reserves-to-production or R/P ratio in excess of 100 years

(See Table 1).

Venezuela reigns as the largest holder worldwide of oil

reserves with control of 17.9% of said resources. The

country has even surpassed Saudi Arabia with its 265,400

MMbbls of oil reserves, which represent 16.1% of said oil

reserves worldwide.

However, Venezuelas oil production still lags behind that of

Saudi Arabia, which amounted to 11,161 Mb/d at the end

of 2011 (R/P ratio of 65.2 years), and other countries such

as Canada, China, Iran, Russia, the United Arab Emirates

(UAE), and the United States of America (USA).


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At the end of 2011, Venezuelas gas reserves amounted to 195.0 trillion cubic feet (Tcf), while its gas

production amounted to 7,125 million cubic feet per day (MMcf/d) gross (4,241 MMcf/d, net after

reinjections) which resulted in a R/P ratio in excess of 100 years (See Table 2).

As such, Venezuela is the eighth largest holder worldwide of gas reserves with control of just 2.7% of

said resources.

TABLE 1: WORLDWIDE OIL RESERVES AT THE END OF 2011 (TOP 10 COUNTRIES)

Country Rank

Reserves

(MMbbls)

Share of

Total (%)

Production

(Mb/d)

R/P Ratio

(In Years)

Venezuela (1) 1 297,571 17.9% 2,991 100 +

Saudi Arabia 2 265,400 16.1% 11,161 65.2

Canada 3 175,200 10.6% 3,522 100 +

Iran 4 151,200 9.1% 4,321 95.8

Iraq 5 143,100 8.7% 2,798 100 +

Kuwait 6 101,500 6.1% 2,865 97.0

United Arab Emirates 7 97,800 5.9% 3,322 80.7

Russia Federation 8 88,200 5.3% 10,280 23.5

Libya 9 47,100 2.9% 479 100 +

Nigeria 10 37,200 2.3% 2,457 41.5

Note: (1) Reserve and production data provided by PDVSA

Source: BPs Statistical Review of Energy

TABLE 2: WORLDWIDE GAS RESERVES AT THE END OF 2011 (TOP 10 COUNTRIES)

Country Rank

Reserves

(Tcf)

Share of

Total (%)

Production

(MMcf/d)

R/P Ratio

(In Years)

Russian Federation 1 1,575.0 21.4% 58,730 73.5

Iran 2 1,168.6 15.9% 14,687 100 +

Qatar 3 884.5 12.0% 14,208 100 +

Turkmenistan 4 858.8 11.7% 5,761 100 +

USA 5 299.8 4.1% 63,014 13.0

Saudi Arabia 6 287.8 3.9% 9,601 82.1

United Arab Emirates 7 215.1 2.9% 5,005 100 +

Venezuela (1) 8 195.0 2.7% 7,125 100 +Nigeria 9 180.5 2.5% 3,856 100 +

Algeria 10 159.1 2.2% 7,546 57.7

Note: (1) Reserve and production data provided by PDVSA

Source: BPs Statistical Review of Energy


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However, Venezuelas gas production, according to BP at the end of 2011, ranks twenty-sixth

worldwide and lags behind that of the following countries: Algeria, Argentina, Australia, Canada, China,

Egypt, India, Indonesia, Iran, Malaysia, Mexico, Netherlands, Nigeria, Norway, Pakistan, Qatar, Russian

Federation, Saudi Arabia, Thailand, Trinidad & Tobago, Turkmenistan, United Arab Emirates, United

Kingdom (UK), USA, and Uzbekistan.

In a move to increase its proven oil and gas reserves and production capacity, Venezuelas state oilcompany Petrleos de Venezuela (PDVSA) has announced a seven-year capital budget plan for 2012-

2018 (See Tables 6-1 and 6-2) that calls for investments of $266,059 million (an average of $38,008

million per year) with the lions share being destined for the following activities: production ($127,941

million), new refineries and upgraders ($59,490 million), onshore gas developments ($25,425 million),

existing refineries ($18,999 million) and exploration ($5,970 million). Given the magnitude of PDVSAs

capital budget, the company is counting heavily on third party investments from international oil

companies (IOCs) as well as national oil companies (NOCs).

In short, Venezuela holds wide spread potential for investors searching for activities in the upstream,

downstream, and midstream sectors, among others indirectly related to the petroleum sector.

Nevertheless, Venezuelas petroleum sector has been undergoing across the board changes and

expropriations since 2005. These changes have forced a number of companies to exit the country do to

disagreement with the governments Sowing Petroleum Plan and policies, which continuously point

the blame at IOCs for a number of issues currently affecting Venezuelas petroleum sector and the

country in general.

While Energy Analytics Institute is not in complete agreement with the current governments

petroleum sector policies, or entirely confident in its means to increase its proven oil and gas reserves

and production, we cannot overlook the enormous opportunities that are found in Venezuela. This

Investor Research Report takes a look at these opportunities within the framework of PDVSAs seven-

year capital budget plan. It also examines the evolution of PDVSAs Balance Sheets and Income

Statements over the last six years.

FOR MORE DETAILS, DOWNLOAD THE FULL 59-PAGE RESEARCH REPORT VENEZUELA: OPPORTUNITIES

FOR THE NON FAINT OF HEART INVESTOR ONLINE.

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INVESTOR RESEARCH REPORT FORWARD ENDS


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DISCLAIMER / DISCLOSURES

The Energy Analytics Institute (EAI) is an independent research company and is not a registered

investment advisor. Information contained in this report is based on sources considered to be reliable

but is not represented to be complete and its accuracy is not guaranteed. Opinions expressed reflect

judgment of the author as of the date of publication and are subject to change without notice.

This document and its contents do not constitute an offer, invitation or solicitation to purchase or

subscribe to any securities or other instruments, or to undertake or divest investments. Neither shall

this document or its contents form basis of any contract, commitment or decision of any kind. This

material has no regard to specific investment objectives, financial situation or particular needs of any

recipient. It is published solely for informational purposes and is not to be construed as a solicitation or

an offer to buy or sell any securities or related financial instruments.

Energy Analytics Institute (EAI) accepts no liability of any type for any direct or indirect losses arising

from use of this document or its contents. All information is correct at time of publication; additional

information may be made available upon request.

Energy Analytics Institute (EAI) and its officers, directors, shareholders and employees, and members of

their families may have positions in securities mentioned in this report and may as principal or agent,

buy and sell such securities before, after or concurrently with publication of this report.


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EXECUTIVE TEAM

Editor:

Chad Archey

Copy Editor:

Layla Benitez-James

Editorial Council:

James Lam

Earl Francisco Lopez

Ofelia Paredes

Vinod Sreeharsha

Harold Stewart

Commentaries / Analysis:

Ian Silverman

Aaron Simonsky

Jeremy MorganJared Yamin

Distribution:

Fidencio Casillas

Proofreading:

Rufus Trotman

Carlene Williams

Photography / Layout:

FOTObicion

Director General:

P. Don Pitts


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FEES FOR INVESTOR RESEARCH REPORTS

Fee-Based Individual Research Reports

The fee for each Latin America and Caribbean Region research report is US $395/person.

Ad Hoc Research Reports

The fees for special ad hoc research reports can be obtained by contacting us directly at the following

mailing address:

In the USA (Corporate Headquarters):

Energy Analytics Institute

15227 Oak Terrace Drive

Houston, Texas 77082

T. 1.832.387.0183

W.www.energy-analytics-institute.org

[email protected]

Follow @EnergyAnalyInst

In Venezuela (Representative Office):

Energy Analytics Institute (formerly Editores Latin Petroleum, C.A.)

Avenida Francisco de Miranda

Edificio Galerias Venezias, Local 3

Municipio Chacao

Caracas, Venezuela

T. 58.416.403.8945
http://www.energy-analytics-institute.org/http://www.energy-analytics-institute.org/http://www.energy-analytics-institute.org/mailto:[email protected]:[email protected]:[email protected]:[email protected]://www.energy-analytics-institute.org/

INFORME PETROLERO DE VENEUELA 2011

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