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Petroleum industry

Petroleos de Venezuela SA (PDVSA) Expands Operations and Increases Revenues for 1995

Strategic Insights

— 1 min read

State oil company Petroleos de Venezuela S.A. (PDVSA) anticipates a significant expansion of its operations and revenue growth in 1995. The company has set a budget of $11.2 billion for spending, a 31.5% increase from 1994, with 70% of investment spending allocated to exploration and production. PDVSA expects to export 2.387 million b/d of crude and products at an average price of $13.50/bbl, with total export revenues projected to reach $12.3 billion, an 11.9% increase from 1994.

Key Takeaways:

  • PDVSA plans to invest $5.3 billion in new projects in 1995, with 70% allocated to exploration and production.
  • The company will drill 35 exploratory wells and 542 advanced wells, and repair 1,235 wells in 1995.
  • PDVSA's petrochemicals sector is expected to improve due to market expansion and greater efficiency in production and marketing activities, with Pequiven anticipating net profits of $147 million in 1995.
  • PDVSA's plan to offer joint exploration and production contracts to the private sector for 10 light- and medium-crude fields is expected to boost production to more than 4 million b/d by 2003.
  • The company will pay $5.227 billion in tax revenues to the state in 1995, an 11% increase from 1994.
  • PDVSA's proven oil reserves are expected to climb to 64.922 billion bbl by the end of 1995, with output rising 180,000 b/d to 3.15 million b/d.

Statistics:

  • 1995 budget: $11.2 billion (31.5% increase from 1994)
  • Investment spending: $5.3 billion (70% allocated to exploration and production)
  • Crude and product exports: 2.387 million b/d (average price: $13.50/bbl)
  • Total export revenues: $12.3 billion (11.9% increase from 1994)
  • Tax revenues to the state: $5.227 billion (11% increase from 1994)
  • Proven oil reserves: 64.922 billion bbl (expected to climb by 798 million bbl in 1995)
  • Output: 3.15 million b/d (180,000 b/d increase from 1994)
  • Refining capacity: 1 million b/d (74,000 b/d increase from 1994)

Sources:

  • Energy and Mines Minister Erwin Arrieta
  • PDVSA President Luis Giusti
  • PDVSA's annual meeting
  • General Agreement on Trade and Tariffs
  • Venezuelan complaint to the General Agreement on Trade and Tariffs regarding U.S. environmental standards
  • PDVSA's petrochemical subsidiary Pequiven
  • Venezuelan government approval of PDVSA's plan to offer joint exploration and production contracts to the private sector.

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