"Chavez and Uribe Discuss Oil Pipeline"

Chavez and Uribe Discuss Oil Pipeline from Venezuela to the Pacific Ocean

Caracas, November 10, 2004 - Yesterday night Venezuelan President Hugo Chavez met with Colombian President Alvaro Uribe in Cartagena de las Indias to strengthen relations between the countries and discuss the possibility of constructing an oil pipeline through Colombia via el Río Meta.

The pipeline would stretch over 1,000 kilometers, (625 miles), connecting the Venezuelan city of Maracaibo with the Colombian Pacific province of Chocó.

Venezuela, the world's fifth largest producer of oil, is looking to diversify its markets. The International Energy Agency has projected a 15% increase in Chinese demand for oil. It has also been forcasted that Japanese consumption will rise. Ivan Orellana, Venezuela's governor to the Organization of Petroleum Exporting Countries, commented that the projected increase in demand justifies higher shipping costs to the Asiatic countries.

As it stands, 60% of the Venezuelan crude oil is sold to the US via the Panama Canal. According to Julio César Vera, a Colombian Mines Ministry Oficial, the proposed agreement with Colombia would not only allow Venezuela to export to a greater number of countries but it would also create a route capable of accomodating even the largest of oil tankers.

Full Article : venezuelanalysis.com