PdV in barter with Chinese firm to repair refineries

Venezuelan state-owned PdV has retained Chinese contractor Wison Engineering under a barter contract to make critical repairs at the 940,000 b/d CRP refining complex on the Paraguana peninsula.

PdV will pay Wison Engineering in refined products shipments, including diesel and fuel oil, to repair crude processing units at the 635,000 Amuay refinery and 305,000 b/d Cardon refinery that comprise the CRP complex, according to a senior energy ministry official.

PdV's barter contract with Wison seeks to ease a chronic local motor fuel supply deficit triggered last March by four back-to-back nationwide power outages that damaged key crude processing units.

The CRP complex is currently processing about 150,000 b/d of crude or roughly 16pc of nameplate capacity. The complex accounts for more than 72pc of PdV's 1.3mn b/d local refining capacity.

PdV estimates the repairs could take up to one year to complete. Unofficial motor fuel rationing measures will remain in effect until the CRP's refining operations are fully restored, the oil ministry said.

The Venezuelan government is not rationing motor fuel in Caracas, but elsewhere PdV has capped weekly motor fuel supplies at 30 liters per vehicle, crippling cargo and public passenger transportation activities. About 60pc of PdV's 1,765 service stations are currently closed because of the lack of fuel and unstable power supply.

Crude processing units scheduled for emergency repairs at the Amuay refinery and Cardon refinery include two fluid catalytic crackers, up to five distillation units, Amuay refinery's flexicoker, hydrodesulphurizers and other units, the oil ministry said.

Wison is also expected to repair the 315MW Genevapca gas-fired thermoelectric plant that was built more than 30 years ago to serve as the CRP complex's dedicated electricity supply, the ministry said.

Former president Hugo Chavez ordered PdV in 2010 to integrate the Genevapca complex with the national electricity grid. But PdV's barter contract aims to restore the CRP's autonomous electricity supply to insulate the refining complex against potential blackouts, the oil ministry said.

Wison has been working in Venezuela for more than a decade, and currently is a member of the Korean-Chinese Hyundai-Wison consortium executing the 190,000 b/d Puerto La Cruz refinery expansion project under a turnkey engineering and construction contract awarded in 2012.

Wison Engineering did not respond to calls and emails seeking comment. Local Chinese diplomatic officials and PdV also declined to comment.