Pdvsa to grant 10% of Petropiar's of its shares to the CVG

Activities of Venezuelan state-run oil company Pdvsa will expand to the mining sector as the company has recently entered into the Orinoco Agreement with the Venezuelan Corporation of Guayana (CVP) to jointly run operations in the Orinoco Oil Belt and Guayana Industrial Mining Belt.

Venezuelan President Hugo Chávez and Minister of Petroleum and Mining Rafael Ramírez stressed on Monday that the agreement provides for the creation of oil joint venture Petro San Félix. President Chávez instructed the "incorporation of an oil company based on Petropiar: Petro San Félix, an oil company, whose at least 10% of its shares should be owned by CVG."

As acknowledged by the President himself, Petropiar's daily heavy oil output in the Ayacucho Block, Orinoco Oil Belt, amounts to 150,000 barrels per day (bpd).

Pdvsa has a 70% stake in the joint venture, while US oil company Chevron holds 30%.

Regarding Petro San Félix, the Head of State said "10% of the company's shares would be transferred to the CVG (amount currently owned by Pdvsa) for the incorporation of an oil joint venture, reinforcing in turn the CVG itself. So the CVG will be accompanied by an oil company."

President Chávez added, "Another agreement will be signed here providing for the supply of Sidor's steel by-products to Industrial Pdvsa for the development of the Orinoco Oil Belt."

Translated by Jhean Cabrera