MARIANNA PÁRRAGA
EL UNIVERSAL

While the National Assembly (AN) is investigating in depth the recent contracting of drills by state-run oil holding Petróleos de Venezuela (Pdvsa) and amidst strained labor environment in the oil business, Minister of Energy and Petroleum and Pdvsa CEO Rafael Ramírez met with a small group of reporters. On that occasion, he talked about being in charge of the ship on which most national income depends and their plans to shift the helm.

Excerpts follow.

Q: The plan called Siembra Petrolera (Oil Sowing) has been delayed. How does the lack of drills affect the oil production plans?

A: I would not say that there is a delay. Siembra Petrolera is based on growth in the Orinoco oil belt. There is no exploration risk in that area. It is almost like having potential for production. The point at issue there is the development of handling and improvement facilities. Anyhow, the stages of exploration and production are starting soon. Carabobo bloc is ready.

Q: How many additional drills are needed in the Orinoco oil belt?

A: About 50 drills for one and a half year. For our traditional areas, we are working on another bid of 50-56 units by the end of this year. We found already an offshore drill to start drilling in Mariscal Sucre in 2008, and 41 rigs are on the way to nationalization.

Q: Will some of the drills included in the winning bids in 2006 arrive on time?

A: Yes. And we will repeat the process to get the drills. Will we continue working with Schlumberger and Baker Hughes? Sure. But contracting the drills with negotiation power is not the same as to handing them over. We do want, we ought to have, technological sovereignty. We are calling our foreign partners to organize joint ventures, and having our own service provider is the strategic step. All of the drills we are recovering and the Chinese drills would be assets of Pdvsa Services.

Q: What about the claims of operational emergency?

A: There is indeed operational emergency and the board of directors declared it. If we do not speed up the bidding processes, production plans are at risk. This means chaos.

Q: Fostering competition is one of the objectives of Pdvsa subsidiaries. What about State monopoly?

A: I am not against State monopoly. Socialism has been criticized. However, as far as I am concerned, capitalism is what has failed. I am not afraid then, of State monopoly. This is good, because the State follows criteria other than market logic, which logic ends by being criminal. We will use the State force to open this. Right now, some sectors have too backward structures, to such an extent that they can build neither socialism nor any kind of capitalism. We are an oil monopoly and want do be it. This is strategic and most important.

Translated by Conchita Delgado
cdelgado@eluniversal.com