[Marxism] Ven. Guarantees Uruguay oil supply for 25 years

Fred Feldman ffeldman at bellatlantic.net
Thu Aug 25 09:34:51 MDT 2005


Oil & Gas 
 

Published: Thursday, August 11, 2005
Bylined to: VHeadline.com Reporters 


Venezuela will guarantee Uruguay's oil supply for the next 25 years

Mercosur Press Agency reports that Venezuela will guarantee Uruguay's
oil supply for the next 25 years as part of an energy deal that also
includes providing fuel to other countries in the region. 

"We are going to support our Uruguayan brothers and the government of
President Tabare Vazquez; we are determined to broaden our relations and
do business together," said President Chavez  in Montevideo following
the signing of several joint bilateral accords. 

A Venezuelan vessel carrying one million barrels of crude is already en
route to Montevideo and Chavez promised that Venezuela will immediately
invest the US$40 million of the bunker in projects in Uruguay. 

These include $18 million in the upgrading of a government owned cement
plant which will then provide Venezuela with cement under favorable
conditions for President Chavez administration housing programs. 
The remaining $12 million are to be invested in refurbishing a sugar
cane alcohol plant which will export to Venezuela the so called "green
fuel."
Uruguay imports all the oil it consumes, approximately 50,000 barrels a
day and Venezuela is the world's fifth-leading oil exporter and fourth
US supplier. 

Presidents Vazquez and Chavez also announced work had started on a
"strategic alliance" to drill for oil in Venezuela's so-called Orinoco
strip. "Uruguay's contribution to the joint exploration will not entail
funds, but technicians and expertise" indicated Mr. Chavez. 

Venezuela's government-owned oil company PDVSA is interested in refining
heavy oil in Uruguay's only refinery strategically located in the South
Atlantic coast. PDVSA plans are to expand the refinery and export fuel
to energy short Mercosur members. The project, involving several hundred
million US$, would double the refinery's capacity to 100,000 bpd
adapting it to the heavy sulfur Venezuelan crude. 

"The technical, legal, market and option studies will take six months
... if the decision is made to build a new plant, it will take at least
five years of work and more than $600 million" admitted Uruguay's oil
company president Daniel Martinez.

V





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