1. A SUSTAINABLE AND DIVERSIFIED ENERGY SUPPLY
Russian Oil & Gas Industry Week
PARTNERSHIP FOR
A SUSTAINABLE AND DIVERSIFIED ENERGY SUPPLY
Eulogio Del Pino
Minister, Popular Power, Petroleum and Mining
Bolivarian Republic of Venezuela
Eulogio Del Pino
Minister, Popular Power, Petroleum and Mining
Bolivarian Republic of Venezuela

2. WORLD SUPPLY DEMAND BALANCE
Overproduction has intensify, thus balance is averaging an extra 1,97 MBD for 2016
Balance for 2016:
+1.83 MBD
Annual Balance:
+2.05 MBD
MBD
USD/b
Annual Balance :
+0.93 MBD
Annual Balance:
-0.41 MBD
Q3-15
+1.58
Q1-16
+1.95
Annual Balance :
+0.05 MBD
Q4-15
+2.31
Annual Balance:
-0.61 MBD
Q3-14
+0.49
Q2-15
+2.39
Q1-15
+1.94
Q1-16
+1.71
Annual Balance:
-0.17 MBD
Q2-14
+0.79
Q4-14
+1.90
Q1-14
+0.54
Source: US EIA *Forecasts

3. At crude oil prices between 60 – 80 $ a barrel, inventory
CRUDE OIL PRICES AND INVENTORIES,
At crude oil prices between 60 – 80 $ a barrel, inventory
levels are around 2700 MBl
MBl
Source: OPEC

4. VOLUME OF PRODUCTION TO INCORPORATE A 10% ANNUAL DECLINE
(MBD)

5. PRODUCTION & EXPORTS FOR 18 COUNTRIES ATTENDING DOHA TALKS
JANUARY 2016
Source: JODI
Countries in Doha account over 50% of world production
On exports, they are equivalent to 82% 50 72
534
637
779
793
1.012
1.136
1.770
2.145
2.260
2.558
3.000
3.204
3.370
4.775
10.180
10.230

6. PRODUCTION FREEZE
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
Q2 2017
Q3 2017
Q4 2017
World Oil Supply
96,6
95,8
95,3
95,7
95,5
95,0
94,9
95,6
World Oil Demand
93,8
94,5
96,7
94,8
95,4
96,5
97,6
Inventory Volume
3.020,0
3.140,5
3.122,1
3.031,2
3.094,9
3.058,9
2.918,8
2.728,5
Production for 18 countries that attended Doha Meeting

7. IRAN´S PRODUCTION AND BRENT PRICES
TBD
$/Bls
Source: JODI & OPEC

8. HOW CAN WE MAKE A DIFFERENCE?

9. GLOBAL CRUDE QUALITY OUTLOOK, 2010- 2040
Average crude API gravity is decreasing, thus creating opportunities for heavy oil producers.
Global crude quality outlook,
Source: World Oil Outlook, OPEC, 2016

10. WORLD CRUDE PRODUCTION FORECAST 2016 - 2025
Crude Production MBD
Heavy Crude Production MBD
Crude Production Increase:
US, Iraq, Canada Brazil and Iran will register the highest growth for , mainly on light and medium segmentations (except for Canada).
Heavy Crude Increase:
Canada, Venezuela, Iraq and the UK are the countries with highest growth on heavy crudes
Production decline in Colombia, Brazil and Mexico opens a new set of opportunities
Source: IHS CERA, PDVSA, 2015

11. COKING CAPACITY VS HEAVY CRUDE PRODUCTION 2016 – 2021 (TBD)
Source: WoodMackenzie, IHS CERA
Coking capacity increase
Heavy crude production increase
Available Capacity

12. has the largest reserves around the world
To Diversify in a Low Cost and Low Risk Environment
LA FAJA
has the largest reserves around the world

13. ORINOCO OIL BELT (FAJA)
WHERE CAN LOW COST AND LOW RISK, FOR HEAVY CRUDES, BE FOUND?
299,9
ORINOCO OIL BELT (FAJA)
Bln Bls
FAJA

14. National Petroleum Consortium
ORINOCO OIL BELT
CURRENT & NEW DEVELOPMENT
Russian
National Petroleum Consortium

15. ORINOCO OIL BELT - OIL PRODUCTION
2012
Year Average
1.177 TBD
2013
1.211 TBD
2014
1.247 TBD
2015
1.320 TBD
2016 ESTIMATED
1.372 TBD
2012
2013
2014
2015
2016

16. LOCATION OF JOINT VENTURES: RUSSIAN - VENEZUELAN
PETROMIRANDA
14,628.0 MMBls
PETROMONAGAS
3, MMBls
PETROVICTORIA
15, MMBls
BOQUERÓN
207.6 MMBls
PETROPERIJÁ
266.7 MMBls
PETROZAMORA
1, MMBls
2.718 MMBls
2.884 MMBls

17. JOINT PRODUCTION VENEZUELA-RUSSIA
Production Forecast for six Venezuelan-Russian Mixed Enterprises, in the Orinoco Oil Belt, will add up over 800K barrels of heavy crude (8-10 °API) per day by 2025.
Real
Plan
CURRENT PRODUCTION: 206 TBD PRODUCTION FORECAST 2025: 830 TBD

18. RECENT PARTNERSHIP CASE: PETROMONAGAS
Under current price scenarios and unilateral sanctions imposed y US and EU, Rosneft has increased its investments in Venezuela, mainly through the rise of its participation share in Petromonagas.
TBD
Petromonagas JV, already being one of the most prolific partnerships in Venezuela.
The joint plan to amplify its development by introducing state-of-the-art technologies and raising E&P management efficiency.

19. THE BLENDING STORY: A CASE FOR DIVERSIFICATION IN THE OIL MARKET
Venezuelan-Russian Mixed Companies produce different crude segmentations, which are the base for a Blending Strategy.
Blending Strategy allows to take over additional market share by creating an entire range of heavy and medium segmentations.
Blending can be done using domestic or foreign crude, using Orinoco Oil Belt´s Heavy Crude as blending base. I.e. using Urals with heavy crudes.

20. Thank you