13-09-2012

The integration process has a bright future Venezuela and Argentina strengthen ties for oil and industrial development

In order to strengthen the Latin American integration process in different sectors, the First Argentina-Venezuela Integration Meeting for Oil and Industrial Development was held in the Venezuelan capital. The meeting was attended by representatives of 150 firms of the two countries. The purpose is to submit specific projects to achieve progress in energy and industrial sectors. 

The meeting will allow the preparation of joint development plans through working groups organized through the participation of PDVSA Industrial. A series of projects in areas such as oil, chemical and metalworking infrastructure will be addressed as well as projects in the areas of machinery and equipment, electronics and oilfield services in order to promote the development of special conditions for the industrial development of the Orinoco Oil Belt (FPO).

Rafael Ramírez, the People’s Minister of Petroleum and Mining and President of state-run oil company Petróleos de Venezuela, S.A. (PDVSA) led the event. Ramírez said that the meeting was important due to the strong relations with the Common Market of the South (MERCOSUR), thanks to Venezuela’s recent accession to the integration body: “This is an event that marks a historic milestone for us because it places our country in a real historical perspective which leads us to the South. We belong to the South and with the country’s full membership to MERCOSUR a series of extraordinary integration possibilities are opened with all our brotherly peoples and countries in South America.”

Ramírez appreciated the broad participation of Venezuelan and Argentine private businessmen who are related to oil industry in both countries. He also highlighted the opportunities for participation in this project which is an integral part of the Full Oil Sovereignty policy: “The goal of this first meeting is to implement several cooperation mechanisms in our oil industry, that is the private Argentine and Venezuelan industry and state-run oil company Petróleos de Venezuela (PDVSA), along with their different institutions that are promoting oil development in our country.” 

The Minister of Petroleum and Mining said that Venezuela has the largest proven hydrocarbon reserves in the world: 297.6 billion barrels of oil, of which 90% of them are located in the FPO. This is a radical departure from the policy implemented by previous governments, when oil industry was granted to multinational corporations through the implementation of an anti-national strategy.  

“With the development of our oil laws and following the nationalization decree enacted on May 1, 2007 we have finally been able to control this vast oil region, which is a key element to obtain an economic progress leading to the development of the country.”

The Venezuelan minister also stressed: “Our proposal is to develop these abilities and do that with South America, with the support of equal partners; when we talk about partnerships between Venezuelan and Argentine firms, we are talking of alliances between countries with the same problems, concerns and feelings, countries with friendly governments. This is not an oil plan; it is a plan included in a strategic vision aimed at the industrialization of our country.”

For his part, Julio De Vido, the Minister of Federal Planning, Public Investment and Services in Argentina also took the floor and said to Venezuelan and Argentine businessmen: “It is important that you accompany this huge integration mechanism and the strengthening of the relations between two brotherly countries such as Venezuela and Argentina in a process that goes beyond bilateral relations because we are working very hard to establish an effective and real integration.”

The Argentine minister also talked about the presence of Venezuela in MERCOSUR and said that Venezuela’s entry has transformed the South American body into an international economic powerhouse: “Any data related to energy, food, foreign trade, volume of reserves and trade potential puts us in the third or fourth place in the world ranking,” he stated. 

De Vido said that the 75 Argentine companies that attended the event are just the first firms that want to come to Venezuela to provide services in the country: “I can tell you that this meeting is not a limiting factor or a ceiling. The fact that you are here means that you are the ones that open the door. After you, all the people with the same willingness to work and provide services as all these companies will be able to come.”