www.vheadline.com Posted: Thursday, March 06, 2003 By: Robert Rudnicki

Following last week's drop in oil production by 500,000 barrels per day due to a build up in storage tankers caused by a reduction in exports, Petroleos de Venezuela (PDVSA) has almost completely recovered the 500,000 drop as exports begin to normalize.

Storage tanks were partially emptied on Tuesday following the loading of around three million barrels of oil at the Jose terminal, after the company contracted extra tankers to speed up the export process.

With this recovery in production the government now estimates that production is back to just over two million barrels per day, however, rebel PDVSA executives claim only 1.6 million barrels a day are currently being produced.

santafenewmexican.com Associated Press 03/04/2003 Bernardo Alvarez Herrera, left, Venezuelan ambassador to the United States, speaks Monday at a news conference at the state Capitol. - Jerome T. Nakagawa | The New Mexican enezuela's ambassador to the United States is visiting New Mexico, a trip aimed at creating new economic and cultural ties. Bernardo Alvarez Herrera heads a delegation that met Monday with lawmakers and Gov. Bill Richardson. Meetings are planned later this week with representatives of the oil and gas industry, Los Alamos National Laboratory and the University of New Mexico. The delegation also plans to visit museums and the National Hispanic Cultural Center in Albuquerque. Alvarez said he would talk about issues ranging from possible joint ventures between private-sector energy companies in Venezuela and New Mexico to a swap of art between the state and his country. Heavily Hispanic New Mexico, which has some cultural commonalities with Venezuela, is a natural starting point for strengthening ties with the United States that go beyond its energy relationship, the ambassador told the state Senate. "We would like to build a very friendly and stable relationship between our two nations," Alvarez said. He also reiterated that his nation's oil production is recovering since coming to a virtual standstill in February because of political turmoil and strikes. "Venezuela is coming back to full production," he said. Venezuelan officials said last week in Washington, D.C., that the country was exporting about 1.5 million barrels a day, about half its average daily export last year. Venezuela is the world's fifth-largest oil producer and a major source of oil for the United States, accounting for about 14 percent of U.S. oil imports last year. Venezuela's Ambassador Seeking Closer Ties to N.M. Associated Press 03/04/2003 Bernardo Alvarez Herrera, left, Venezuelan ambassador to the United States, speaks Monday at a news conference at the state Capitol. - Jerome T. Nakagawa | The New Mexican enezuela's ambassador to the United States is visiting New Mexico, a trip aimed at creating new economic and cultural ties. Bernardo Alvarez Herrera heads a delegation that met Monday with lawmakers and Gov. Bill Richardson. Meetings are planned later this week with representatives of the oil and gas industry, Los Alamos National Laboratory and the University of New Mexico. The delegation also plans to visit museums and the National Hispanic Cultural Center in Albuquerque. Alvarez said he would talk about issues ranging from possible joint ventures between private-sector energy companies in Venezuela and New Mexico to a swap of art between the state and his country. Heavily Hispanic New Mexico, which has some cultural commonalities with Venezuela, is a natural starting point for strengthening ties with the United States that go beyond its energy relationship, the ambassador told the state Senate. "We would like to build a very friendly and stable relationship between our two nations," Alvarez said. He also reiterated that his nation's oil production is recovering since coming to a virtual standstill in February because of political turmoil and strikes. "Venezuela is coming back to full production," he said. Venezuelan officials said last week in Washington, D.C., that the country was exporting about 1.5 million barrels a day, about half its average daily export last year. Venezuela is the world's fifth-largest oil producer and a major source of oil for the United States, accounting for about 14 percent of U.S. oil imports last year.

Posted: Tuesday, March 04, 2003 By: Robert Rudnicki

Petroleos de Venezuela's (PDVSA) efforts to recover production of gasoline have been hampered by the company's inability to restart a catalytic cracking unit at the Paraguana refinery. An attempt to restart the unit was made over the weekend, but this failed as problems persisted in being able to establish a stable gas supply and to overcome the effects of sabotage.

However, the unit is expected to be up and running by the end of next week, and once this happens production should stand at 140,000 barrels of gasoline per day, in addition to the 60,000 being produced at the Cardon plant this would lift levels to 200,000 barrels per day, almost enough to cope with domestic demand.

The Venezuelan government has been forced to import significant quantities of gasoline from overseas to meet domestic demand, and although long queues were evident across the country, it now seems that supplies have stabilized and shortages have all but disappeared.

Posted: Tuesday, March 04, 2003 By: Robert Rudnicki

Petroleos de Venezuela's (PDVSA) efforts to recover production of gasoline have been hampered by the company's inability to restart a catalytic cracking unit at the Paraguana refinery. An attempt to restart the unit was made over the weekend, but this failed as problems persisted in being able to establish a stable gas supply and to overcome the effects of sabotage.

However, the unit is expected to be up and running by the end of next week, and once this happens production should stand at 140,000 barrels of gasoline per day, in addition to the 60,000 being produced at the Cardon plant this would lift levels to 200,000 barrels per day, almost enough to cope with domestic demand.

The Venezuelan government has been forced to import significant quantities of gasoline from overseas to meet domestic demand, and although long queues were evident across the country, it now seems that supplies have stabilized and shortages have all but disappeared.

usinfo.state.gov 03 March 2003

QUESTION: On Venezuela.

MR. BOUCHER: We'll come back to you, Joel.

QUESTION: Last Wednesday, after the Venezuelan Ambassador was coming from the oil industry, presented his credential, it was a meeting between higher official of the State Department and the Venezuelan Energy Minister and the president of the oil company of Venezuela. And in this meeting, the U.S. Government made clear that Venezuela cannot be considered as a reliable partner, oil supplier to the United States.

Mr. Curt Struble, the Acting Assistant Secretary, the day after, goes more forward and he said at the hearing at the Congress that Venezuela, considering the political crisis, can be considered as a threat to the region, political and economical threat to the region.

I just want to know, there is a meeting on -- of the Group of Friends of Gaviria in Brazil. There will be any change in the strategy?

And the second question is, did President Chavez' inflammatory rhetoric cause some damage to the relationship between the United States and Venezuela?

MR. BOUCHER: First of all, you are better informed than I am on current events. I believe there was a statement by the Group of Friends late last week or over the weekend. There is an upcoming meeting of the Group of Friends, I think next Monday. Acting Assistant Secretary Struble will go down to that, confer with other people in the hemisphere.

We do follow the situation in Venezuela very closely and we have been concerned about the situation down there, but I don't think I have any further update for you at this moment.

QUESTION: Well, could you check to see whether that's an accurate description of what he said -- political and economic threat to the region?

MR. BOUCHER: I'll have to check on that. I assume that's somewhere in the public record if it was at a Congressional hearing.

Sir.

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