Exxon Mobil may start Venezuelan plastics joint venture

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Thursday, May 08, 2003 By: David Coleman

According to local media reports, the Exxon Mobil Corporation says it may go ahead with a $2 billion plastics joint venture with Venezuelan state petrochemical company, Pequiven. Exxon Mobil Venezuelan executive Mark Ward is quoted as saying that the company wants to resume talks on an agreement which has been under study for the last seven years.

"We are re-establishing contact with the new Pequiven leadership and we are waiting for Petroleos de Venezuela (PDVSA) and the Energy & Mines (MEM) Ministry to sit down and negotiate.''

The proposed plastics JV is said to be a key part of Venezuela's plans to raise petrochemical output and to reduce dependence on crude oil exports ... Pequiven and Exxon Mobil will each have a 49% stake in the project with the remaining 2% reserved for financiers.

According to an already released plan, the new plant could be located at the Jose petrochemical complex due west of Puerto La Cruz and would use natural gas from eastern oil fields as feedstock, or raw material. It would be centered around a 1 million metric tonnes a year ethylene cracker unit and would convert the resulting ethylene into 750,000 metric tonnes of polyethylenes and 420,000 metric tons of ethylene glycols.