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Andrew Purcell, the executive chairman of Mel- updates as drilling progresses.”
bana, described the spudding of the Alameda-1 According to a presentation on Melbana’s
well as a positive development. web site, Alameda-1 is being sunk at a site that
“This has been a long-anticipated day, is directly adjacent to a previously drilled well
and our thanks and appreciation go out to all in which hydrocarbons flowed to the surface.
those members of our project management The second drilling site will be Zapato-1, and
team [who] have toiled so tirelessly over many this well will target a section of Block 9 that is
months to ensure that we commenced drilling believed to be the source of the nearby Motembo
on schedule,” he said. “We will provide regular oilfield. ™

VENEZUEL A
Venezuela keen to restart El Palito oil

refinery despite maintenance challenges

THE Venezuelan government is keen to restart the matter told Bloomberg that the plant has not
operations at the El Palito refinery, which serves yet started producing fuel. The units have not
as one of the country’s key sources of gasoline, been operating since the end of last year, and
despite ongoing maintenance problems. their water and ventilation units are still under-
The cash-strapped administration of Presi- going repairs, the source said.
dent Nicolas Maduro is pushing the national oil PdVSA’s refineries are currently using only
company (NOC) PdVSA to bring the plant back about 5% of their total throughput capacity and
online within the framework of a wider effort turning out just 60,000 bpd of gasoline, diesel
to double domestic fuel production. Maduro and other fuels. The NOC has tried to raise
hopes this campaign will help mitigate the throughput in the past by appropriating some
severe petroleum product shortages that have of the oil produced by its joint ventures with for-
been reported at filling stations nationwide, eign firms in order to feed domestic refineries,
according to a report from Bloomberg. including the 950,000 bpd Paraguana complex.
The president went into further detail in a Paraguana, one of the three largest oil-pro-
recent interview on state television. “Local fuel cessing facilities in the world, was created via the
demand has doubled during this year. It’s an merger of the Amuay refinery, the Bajo Grande
important indicator of the economic recovery ... refinery and the Cardón refinery. The complex,
Within weeks, we’ll be in the phase of doubling which is located on Venezuela’s western coast-
fuel production to alleviate this issue,” he said. line, has suffered in recent years from mainte-
State-run PdVSA began partial operations at nance issues and a lack of feedstock.
three units of the 140,000 barrel per day (bpd) Oil revenues traditionally account for about
El Palito refinery in central Venezuela earlier 95% of Venezuela’s export earnings. They have
this month. According to Jose Joaquin Vargas, declined precipitously since early 2019, when
a representative of PdVSA refining’s arm, the the administration of former President Donald
company is planning to start two more units by Trump imposed sanctions on PdVSA with the
the end of the month. aim of reducing the country’s oil exports and
However, a source with direct knowledge of exerting pressure on Maduro to step down. ™

The El Palito refinery has a throughput capacity of 140,000 bpd (Photo: PdVSA)

P8 www. NEWSBASE .com Week 37 16•September•2021