1999 Volume 64 Issue 2 Pages 129-139
The Venezuelan oil industry has attracted worldwide concern for 6 years since the opening door policy was initiated. Teikoku Oil has participated in the Venezuelan oil opening programs since they started and has contributed as one of the pioneer overseas companies participating in the oil industry.
The theme of today's topic, “Cooperation with producing countries”, has to be considered through understanding the national oil industry. Namely, understanding PDVSA's way of thinking is important. PDVSA is an unique organization among the national oil companies and its activity has been influential in the history of oil industries. PDVSA is now trying to accelerate its oil opening policy to strengthen its global competitiveness. PDVSA has achieved a high level of technical strength, together with its ample funds, however, lack in organizational flexibility due to the divergent large organizations has been also pointed out. From January 1, 1998, PDVSA started as a new organization by merging former three core operation companies, Lagoven, Maraven and Corpoven into one. Gasoline retail and gas industry are also the targets for the opening policy. Expanding the share in the global market, partly by expanding refinery capacity in and out of the country, is a key strategy in light of the nation's relatively heavy crude resource, as well as by increasing oil production and reserves under competitive costs by introducing foreign capital.
In order to keep foreign investors being attracted, Venezuela has adopted several acts including several reform bills. On the other hand, presidential campaign with a leading candidate opposing to the PDVSA's current strategy might be a concern so does the nation's current economic condition as a negative factor for the oil sector's opening programs.
