Q&A with PDVSA Refining Director Jesus Luongo

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(Energy Analytics Institute, Piero Stewart, 9.Sep.2013) – PDVSA Refining Director Jesus Luongo spoke briefly with Energy Analytics Institute on the sideline of a press conference in Caracas, Venezuela.

What follows are excerpts from the brief interview.

EAI: What is the processing capacity at Amuay?

Luongo: Amuay is processing 445,000 b/d. We are waiting on the #2 distillation unit to come online in Oct.2013. Thereafter processing capacity should reach 480,000 -500,000 b/d.

EAI: Any major developments at Amuay?

Luongo: We are constructing a naphtha treatment unit at Amuay. The unit is 65% complete but is expected to be ready sometime in early-2014. We don’t have any projects that will come online during the remainder of 2013.

EAI: Is there proof sabotage caused the accident at Amuay?

Luongo: Amuay has old installations, which were not constructed to prevent sabotage. There are communities very close to the Amuay (southern flank), that is why we cannot deny that it is possible that someone could enter the southern flank of the refinery.

EAI: Is Amuay under Yellow Alert?

Luongo: All of our refineries in Venezuela are under “Yellow Alert” and have been since early Aug.2013. “Yellow alert” means that all of our personnel must to be prepared for a possible event or events against the refinery installations.

EAI: How much will insurance cover of the Aug.2012 explosion at Amuay?

Luongo: We are not sure how much the insurance will pay. We are taking this opportunity to bring our systems/tanks up-to-date with international safety standards/norms.

EAI: Are investigations into the Aug.2012 accident being conducted?

Luongo: We have always conducted preventative maintenance to check numerous conditions at the pump at the center of the accident.

There are various investigations that are ongoing: fiscal, state, CICPC, and PDVSA/Intevep. At this point, state authorities have presented the evidence to PDVSA/Intevep for the work related to PDVSA/Intevep investigation.

EAI: If it is sabotage, will the insurance cover the cost?

Luongo: I am not sure at this moment.

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