America united on energy
04 23 07
The First South American
Energy Summit (FSAES) held in Margarita (Venezuela) just after
the weekend succeeded not only in bringing together all South American
countries but also in advancing existing energy agreements like
an oil exchange between Ecuador and Venezuela and the full cooperation
of Colombia in the construction of a poliduct that facilitates
Venezuela’s oil export throughout the world.
And these are just some of the energy agreements that were brought
together in these past two days in the Venezuelan tourist island.
project on energy was signed only five moths ago. It is the so
called «OPEC of gas», the Oppegasur, unifying
the gas producing countries Argentina, Bolivia and Venezuela.
The 55 million dollars project (in the first stage) follows energy
initiatives like the agreement on gas exchange between Venezuela
and Colombia and a gas pipeline to the south, connecting Venezuela,
Brazil, Bolivia and Argentina.
Additionally political economical organizations like Mercosur (Argentina,
Basil, Paraguay, Uruguay and Venezuela) and Andean Nations Comunity,
CAN, (Chile, Bolivia, Colombia, Ecuador and Peru), were mentioned
to incorporate into one Latin American agreement.
The goal of bringing all these agreements together is not only to
make more profit but also to preserve it.
In order to prevent foreign countries to take energy out of the
country without offering sufficient compensation, the South American
countries, also united in the Comunidad Suramericana de Naciones
(CSN) discussed a collective effort to raise knowledge, to improve
infrastructure between the countries and to harmonize laws. Seven
of the twelve countries are governed by socialist presidents.
companies like Petrosur, Petrocaribe, Petroandina, Petroamérica
and Petrolera del Cono Sur gave their compromise to these goals.
An issue discussed because of its importance in the unification
of the Latin American countries, was the realization of the Bank
of the South. The issue was not officially on the agenda of the energy
The creation of this bank will be initiated in June this year by
Argentina and Venezuela. It must take over the role of World Bank
and the International Monetary Fund in providing funds to Latin American
Governments and ultimately lead to a latin american bank and one
On this first Summit, Brazil, that is not part of the Bank yet,
said that it did no longer oppose against the idea of a Latin American
Monetary Fund, but that it wants to know how it will be organized
before taking part. It prefers however to be part of the process
of establishment instead of integrating at a later stage.
In one month a reunion of technical financial teams will take in
Brasil in order to revise the construction of the Bank of the South,
The smaller and economically weaker country Ecuador also showed
interest in participating in the Bank.
«This way we will close the debts we have with the World Bank
and the IMF», said Rafael Correa, president of Ecuador. «The
Bank of the South will be a South American Bank owned by governments
and the states of this region as part of a financial integration
and cooperation», he added.
To Colombia and further
More, important extensions of existing agreements were made by neighboring
countries Colombia and Venezuela.
the president of Colombia, confirmed his full support to the construction
of the poliduct between Maracaibo and
the Colombian pacific, which permits Venezuela to subtract crude
oil destined for the Asiatic market unhampered. The poliduct is an
addition to the gas pipeline from Punto Ballens in La Goajira, Colombia
to Maracaibo, Venezuela.
Political relations between Venezuela and Colombia are not always
stable, economically however the two countries generally get along.
The pipe line
is supposed to transport 150 millions meters cubic per day until
Venezuela recovers its gas supply and will provide
Colombia with 500 million meters cubic. An amount of 365 million
dollars will be invested «in the project that will be extended
up till Panama and the rest of Middle America», confirmed the
president Hugo Chávez responded that «now
Venezuela retrieved of the CAN and with still some years to maintain
border agreements and in commerce, we have discussed the speed up
op commercial bilateral agreements».
He added that
they would help to construct a refinery in the route of the poliduct,
in Colombian territory in exchange. Furthermore
he proposed Ecopatrol, the Colombian national oil company «to
exploit the Faja del Orinoco».
The «Faja de Orinoco» is
an oil pit which was long considered worthless for the crudeness
of its oil. For a year however exploitation
has stepped up drastically with the discovery of a new refinery technique.
The Faja is considered the largest oil reserve in the world.
More oil exchange
Besides Colombia, Venezuela agreed to exchange oil with Ecuador.
The neighbour of Colombia extended a deal with Venezuela already
done in February this year.
«We could help Venezuela to extract Ecuadorian gasoline and
Venezuela could do the same for Ecuador in the Faja del Orinoco»,
declared Alberto Acosta the Ecuadorian minister of energy, mines
of Acosta this Tuesday was an affirmation of a buy-sale deal of
gasoline between Pdvsa and Petróleos del Ecuador (Petroecuador).
The deal contains gas supply of Petroecuador during the period of
one year to Pdvsa with monthly adjustments in volume up till 100
thousand barrels a day. Pdvsa set its eye on the oil field in Ishpingo-
Tambococha- Tipurini (ITT) in the east of Ecuador.
In return, the
Venezuelan state company will supply the same amount of refined
oil to Ecuador. Petroecuador will both get the rights
to exploit a part of the Faja del Orinoco in cooperation with Pdvsa,
and the construction of a refinery will be investigated, according
to the minister of energy and mines Rafael Ramírez.
Relations between Ecuador and Venezuela have been very well since
November 2006 when the socialist Rafael Correa won the presidential
elections in Ecuador.
Oil was not the
only hydrocarbon Ecuador wants to share. «We
have gas and we need gas, therefore we need to be complementary»,
said the Ecuadorian minister of Energy and Mines, Alberto Acosta
as an argument to enter the Oppegasur.
«To integrate the countries that demand gas is not only at
the defense of the prises but also improves the market condition
to generate a joint politics between the southern nations»,
The Ecuadorian minister explained that the country has very little
gas which is the reason of negotiations with the Peruvian government.
Furthermore the countries negotiate an interconnection of gas between
the two nations.
«We spoke with Petroperú, with who there will be cooperation
in the delivery of products. We spoke about Oppegasur, because Peru
has one of the most important gas reserves in the world», he
Other agreements made on the summit are the evaluation by Venezuela
of the possibility to construct a refinery in Villa Elise, Paraguay.
To Bolivia Venezuela promised to raise the amount of gasoline send
to the country to 250 thousand barrels per month.
The first Energy
Summit was formalized under the name Unión
Americana del Sur (Unasur) with a headquarter in Quito, Ecuador.