Identifier
Created
Classification
Origin
08CARACAS670
2008-05-15 21:01:00
CONFIDENTIAL
Embassy Caracas
Cable title:
PORTUGAL PM SOCRATES WINS PLEDGE OF 30,000 BPD
how-toVZCZCXRO5575 PP RUEHAG RUEHROV DE RUEHCV #0670 1362101 ZNY CCCCC ZZH P 152101Z MAY 08 FM AMEMBASSY CARACAS TO RUEHC/SECSTATE WASHDC PRIORITY 1130 INFO RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY RUEHWH/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS PRIORITY RHEHNSC/NSC WASHDC PRIORITY RUMIAAA/HQ USSOUTHCOM MIAMI FL PRIORITY
C O N F I D E N T I A L CARACAS 000670
SIPDIS
HQSOUTHCOM ALSO FOR POLAD
DEPT FOR AID/OTI (RPORTER)
E.O. 12958: DECL: 05/15/2018
TAGS: PGOV PREL ENGR EINV ECON PO VE
SUBJECT: PORTUGAL PM SOCRATES WINS PLEDGE OF 30,000 BPD
FROM BRV IN RETURN FOR FOOD, TECHNOLOGY ASSISTANCE
REF: LISBON 001130
Classified By: ACTING POLITICAL COUNSELOR DANIEL LAWTON,
REASON 1.4 (D)
C O N F I D E N T I A L CARACAS 000670
SIPDIS
HQSOUTHCOM ALSO FOR POLAD
DEPT FOR AID/OTI (RPORTER)
E.O. 12958: DECL: 05/15/2018
TAGS: PGOV PREL ENGR EINV ECON PO VE
SUBJECT: PORTUGAL PM SOCRATES WINS PLEDGE OF 30,000 BPD
FROM BRV IN RETURN FOR FOOD, TECHNOLOGY ASSISTANCE
REF: LISBON 001130
Classified By: ACTING POLITICAL COUNSELOR DANIEL LAWTON,
REASON 1.4 (D)
1. (C) Summary: Portuguese Prime Minister Jose Socrates won
pledges of 30,000 barrels of oil per day from Venezuelan
President Hugo Chavez while on a May 13-15 state visit to the
Bolivarian Republic. Portugal will pay for the oil,
estimated by Chavez as having an annual value of USD 1
billion, in food and technology assistance. Similar accords
signed by Venezuela with other countries in the past have not
always been completed or implemented. Chavez appears to have
used the May 13 joint press conference to bolster his image
after the recent spat with German Chancellor Merkel and in
anticipation of Interpol's report on Venezuelan cooperation
with the FARC. End Summary.
2. (U) At the press conference, held at the Miraflores
Presidential Palace in Caracas, Chavez and Socrates announced
that, in addition to the energy-for-food agreement,
Portuguese oil company Petrogal would jointly certify
reserves in the Boyaca 6 block in Venezuela's Orinoco region
with Venezuela's state-owned oil company Petroleos de
Venezuela (PDVSA). PDVSA President and Oil and Energy
Minister Rafael Ramirez estimated there could be 72 billion
barrels of oil at the site. Galp and PDVSA agreed to jointly
develop a two train liquefied natural gas project. The two
trains will handle 1,600 million cubic feet per day, or
nearly 10 million tons, according to Ramirez. At the press
conference, Chavez said he hoped the Venezuelan proven oil
reserves would reach 300 billion barrels in 2009. Galp and
PDVSA also signed a MOU for three pilot projects that will
generate electricity via windpower.
3. (U) In the energy-for-food deal, similar to others signed
recently by the BRV, Venezuela expects to receive 5,000 tons
of powdered milk, 21,000 tons of soybean oil, and 7,000 tons
of pasta. Portugal will also repair 3 PDVSA oil tankers as
part of the agreements.
--------------
Comment
--------------
4. (C) Chavez and Venezuelan state media gave prominent
attention to the Socrates visit in an apparent effort to
bolster the Venezuelan President's statesman credentials.
Chavez appeared particularly interested in exploiting the
visit of a prime minister from an EU member state. Socrates'
visit comes on the heels of Chavez publicly calling German
Chancellor Angela Merkel an ideological successor to Hitler
and just before Interpol validates the hard drives the
Colombian government recovered from the FARC containing
damaging evidence of BRV-FARC ties.
5. (C) As is the case with most of the Faja certification
deals, the question remains whether the Portuguese will
actually get to develop the block. It is also questionable
whether Petrogal has the necessary expertise and deep pockets
to carry out a major extra heavy crude oil project.
DUDDY
SIPDIS
HQSOUTHCOM ALSO FOR POLAD
DEPT FOR AID/OTI (RPORTER)
E.O. 12958: DECL: 05/15/2018
TAGS: PGOV PREL ENGR EINV ECON PO VE
SUBJECT: PORTUGAL PM SOCRATES WINS PLEDGE OF 30,000 BPD
FROM BRV IN RETURN FOR FOOD, TECHNOLOGY ASSISTANCE
REF: LISBON 001130
Classified By: ACTING POLITICAL COUNSELOR DANIEL LAWTON,
REASON 1.4 (D)
1. (C) Summary: Portuguese Prime Minister Jose Socrates won
pledges of 30,000 barrels of oil per day from Venezuelan
President Hugo Chavez while on a May 13-15 state visit to the
Bolivarian Republic. Portugal will pay for the oil,
estimated by Chavez as having an annual value of USD 1
billion, in food and technology assistance. Similar accords
signed by Venezuela with other countries in the past have not
always been completed or implemented. Chavez appears to have
used the May 13 joint press conference to bolster his image
after the recent spat with German Chancellor Merkel and in
anticipation of Interpol's report on Venezuelan cooperation
with the FARC. End Summary.
2. (U) At the press conference, held at the Miraflores
Presidential Palace in Caracas, Chavez and Socrates announced
that, in addition to the energy-for-food agreement,
Portuguese oil company Petrogal would jointly certify
reserves in the Boyaca 6 block in Venezuela's Orinoco region
with Venezuela's state-owned oil company Petroleos de
Venezuela (PDVSA). PDVSA President and Oil and Energy
Minister Rafael Ramirez estimated there could be 72 billion
barrels of oil at the site. Galp and PDVSA agreed to jointly
develop a two train liquefied natural gas project. The two
trains will handle 1,600 million cubic feet per day, or
nearly 10 million tons, according to Ramirez. At the press
conference, Chavez said he hoped the Venezuelan proven oil
reserves would reach 300 billion barrels in 2009. Galp and
PDVSA also signed a MOU for three pilot projects that will
generate electricity via windpower.
3. (U) In the energy-for-food deal, similar to others signed
recently by the BRV, Venezuela expects to receive 5,000 tons
of powdered milk, 21,000 tons of soybean oil, and 7,000 tons
of pasta. Portugal will also repair 3 PDVSA oil tankers as
part of the agreements.
--------------
Comment
--------------
4. (C) Chavez and Venezuelan state media gave prominent
attention to the Socrates visit in an apparent effort to
bolster the Venezuelan President's statesman credentials.
Chavez appeared particularly interested in exploiting the
visit of a prime minister from an EU member state. Socrates'
visit comes on the heels of Chavez publicly calling German
Chancellor Angela Merkel an ideological successor to Hitler
and just before Interpol validates the hard drives the
Colombian government recovered from the FARC containing
damaging evidence of BRV-FARC ties.
5. (C) As is the case with most of the Faja certification
deals, the question remains whether the Portuguese will
actually get to develop the block. It is also questionable
whether Petrogal has the necessary expertise and deep pockets
to carry out a major extra heavy crude oil project.
DUDDY