EL UNIVERSAL
MARIANNA PÁRRAGA

Venezuelan proven oil reserves increased from 99 billion barrels of oil at the end of 2007 to 130 billion barrels last April, a 30.8 percent increase, Minister of Energy and Petroleum Rafael Ramírez said ahead of the First South American Power Council, held in Simón Bolívar conference room, at the headquarters of state-run oil company Petróleos de Venezuela (Pdvsa) in Caracas.

Argentinean, Brazilian, Bolivian, Colombian, Chilean, Ecuadorian, Guyanese, Paraguayan, Peruvian, Surinamese, Uruguayan, and Venezuelan Ministers of Energy and Planning, and ambassadors attended the meeting.

The new proven oil reserves were added under the Orinoco belt Magna Reserva project. Certification of oil reserves under this project began in 2006. Ever since then crude oil reserves at 26.2 billion barrels have been certified in Carabobo oilfield, where assessment has been partly conducted by Brazilian oil company Petrobras. Other 12.9 billion barrels have been certified in Junín 4 Block by Chinese CNPC), while Iranian Petropars has certified 2.9 billion barrels from Ayacucho 7 Block and Venezuelan joint ventures Petrocedeño, Petropiar, and Petromonagas have assessed 8 billion barrels. A part of these reserves was recorded in books last year.

A total of 21 foreign oil companies have worked in the assessment and certification of oil reserves from the Orinoco belt. Five of those corporations come from countries that are parties to the Union of South American Nations (Unasur), namely Chilean Enap, Brazilian Petrobras, Argentinean Enarsa, Ecuadorian Petroecuador and Uruguayan Ancap.

By the end of 2008, Venezuela is expected to record proven oil reserves at 200 billion barrels in books, with the number increasing to 235 billion barrels in 2009.

In April 2007, during the first South American Power Summit, held in Venezuelan Margarita Island, Venezuela offered South American state-run oil companies the opportunity to take part in the process of assessment and certification of oil reserves in Orinoco belt. Such a commitment was stated under the Agreement on Power Security.

The First South American Power Council was aimed at considering the undertakings stated under the agreement, and submitting to Venezuelan President Hugo Chávez a declaration initialed by the council's representatives after their ministerial meeting.

The ministers attending the meeting approved the guidelines of the South American power strategy and power plan, but reached no accord on the Agreement on Power Security. Chávez replied by asking the ministers not to put off the pact. "There is a technical and a political time. There must be a balance between both," he said. 

The resolutions agreed upon are expected to be discussed in Brasilia next May 23, when the presidents of the countries comprising the South American Power Council are scheduled to meet.

Settling differences
The South American Power Council ministers agreed to work on a proposal to create a mechanism to solve conflicts arising from the agreements Latin American companies may enter into with companies from Latin American or anywhere around the world. The intended body is envisaged as an alternative to the World Bank's International Center for Settlement of Investment Disputes (ICSID).

The proposal was publicly supported by Ecuador's delegation. Ecuadorian Minister of Energy Galo Chiriboga suggested that differences among Latin American countries should be solved at home, so that regional integration can be possible.

Furthermore, the delegates agreed to organize the Grand-National Power Company, comprised by oil companies in Latin America and intended to leverage bilateral and trilateral agreements.

Minister Ramírez seized the opportunity to report on an agreement to provide Argentina with liquefied natural gas. This pact will become effective Industrial Compound Gran Mariscal de Ayacucho (Cigma), built in 2007 in Güiria, northeastern Sucre state, kicks off operations.

Translated by Karina Gómez Pernas