Venezuela and Cuba to Form Joint Venture to Exploit Mature Fields

Venezuela and Cuba to Form Joint Venture to Exploit Mature Fields
27 December 2009

Following the Tenth Meeting of the Intergovernmental Commission of
Integral Cooperation Agreement Cuba-Venezuela, held in Havana, Cuba
earlier this month, delegations from both countries signed a memorandum
of understanding to the establishment of a joint venture aimed at the
primary activities in the hydrocarbons within the enclosed area of
mature fields.

According to the signed document, these activities may be implemented in
accordance with the terms and conditions set forth in the Agreement of
the National Assembly, the National Executive Power decree authorizing
the creation of the Joint Venture and the decree which transfers to the
Joint Venture the right to exercise the primary activity in this area,
as specified by the legal regime of oil in Venezuela.

Similarly, the Intergovernmental Commission authorized the change of
name and purpose of the joint venture established in Cuba PDVCUPET S,A
in April 2006 between Commercial Cupet, S,A, and PDVSA Cuba S,A.
Henceforth the company will be named CUVENPETROL, S,A. and shall pursue
the development and operation of the system of petroleum refining,
liquefied natural gas (LNG) and compressed natural gas in the Republic
of Cuba.

The operation of Cuvenpetrol S,A also includes the development in the
Republic of Cuba expansion projects Refinery "Camilo Cienfuegos", design
development and construction of facilities for the regasification plant
of Liquefied Natural Gas (LNG), construction of a new refinery in
Matanzas and expansion of the refinery Hermanos Diaz.

285 projects
Venezuela's delegation was chaired by Vice President and Minister of
Popular Power for Energy and Petroleum Rafael Ramirez, and the
delegation of Cuba by Ricardo Cabrisas Ruiz, vice president of the
Council of Ministers.

The Tenth Meeting of the Intergovernmental Commission hill with the
approval of a portfolio of 285 projects to implement in 2010, valued at
3 thousand 161 million 66 thousand 387 U.S. dollars.

The closing ceremony of this event was attended by the President of the
Bolivarian Republic of Venezuela, Hugo Chávez, and President of the
Councils of State and Ministers of Cuba, Army General Raúl Castro Ruz.

The delegations agreed that the adoption of these agreements and the
agreed cooperation program, are an important contribution to increasing
industrial complementation and integration of the economies of both
countries under the principles of the Bolivarian Alliance for the
Peoples of Our America and the Treaty of Commerce of the People (ALBA-TCP).

The coordinating body of the Convention, the Ministry of Popular Power
for Energy and Petroleum of Venezuela, and the Ministry for Foreign
Trade and Foreign Investment in Cuba, agreed to hold quarterly meetings
to review the status of implementation of agreed programs.

The Eleventh Meeting of the Intergovernmental Commission will be held in
Caracas, Venezuela, in the second half of 2010.

OilVoice | Venezuela and Cuba to Form Joint Venture to Exploit Mature
Fields (27 December 2009)
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