BANKS DODGY DEALS CAMPAIGNS
Sections
Banks Dodgy Deals Campaigns
Our campaigns
Banks and Climate
Banks and Human Rights
Banks and Nature
Our projects
Tracking the NZBA
Banks and Russia
Banks and Steel
Tracking the Equator Principles
Tracking the PRBs
Find a Better Bank
Banks and the OECD Guidelines
Media
News Publications
Raiffeisen Out! Bank.Green End Coal Finance Plastic Banks Tracker Defund TotalEnergies Financial Exclusions Tracker Equator-Complaints.Org Don't Buy into Occupation Banks & Biodiversity Forests & Finance Drop JBS StopEACOP Fossil-Free Finance
BankTrack
About BankTrack Organisation Our team Our board Our annual reports Funding and finances Guiding principles Our history BankTrack in the media Team up with us Our privacy policy Donate Visit us
Successes Contact BankTrack
Donate Mailing list Facebook Twitter Linkedin Login
Home › Dodgy Deals ›
Dodgy Deal
Venezuelan tar sandsVenezuela

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Profile by:
BankTrack
Contact:

climate@banktrack.org

Last update: 2016-07-27 16:21:29
Photo: -

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Profile by:
BankTrack
Contact:

climate@banktrack.org

Last update: 2016-07-27 16:21:29
Why this profile?

What must happen

Private banks must not participate to the funding of these projects, whatever forms it takes, be it project finance, general corporate loans or underwriting of shares or bonds on the stock markets of the companies involved.

About
Sectors Oil and Gas Extraction
Location

Venezuela's tar sands are reported to be the largest after Canada, with recoverable oil totalling at least 2.26 trillion barrels. The majority of the deposits are located in the Orinoco river basin. The Venezuelan government estimates that 20% of the Orinoco basin deposits are extractable using current technology, or around 316 billion barrels. Venezuela is already producing more than half a million barrels of oil per day from four existing tar sands developments: Petroanzoategui, Petromonagas, Petrocedeno and Petropiar.

About 8-12% of the Orinoco oil is recoverable through mining extraction techniques. The rest of the oil will then be extracted through steam-based in situ production, and potentially "methods involving gas injection and in situ combustion".

The Orinoco basin has been divided into four areas for the purposes of tar sands exploration and development. From west to east, these are called Boyaca, Junin, Ayacucho and Carabobo.

Read more...

Impacts

Social and human rights impacts

The social impact of oil exploitation in Venezuela can be argued to have had both positive and negative aspects since the Chavez government came to power. On the positive side, the state-owned Petroleos de Venezuela (PDVSA), which holds a majority stake in all oil projects in the country, must spend at least 10% of its annual investment budget on social programmes. Some of this money was intended to be spent on free health care, discounted food for poor neighbourhoods, job creation programmes, education, indigenous land-titling, and discounted oil prices for exports to neighbouring Caribbean countries and some areas of the US.

On the other hand, almost half of PDVSA's staff went on strike in 2002 in protest at a new Chavez-appointed board of directors. Following this, 18,000 workers were fired and the International Labour Organisation called for an independent investigation into allegations by the workers of detention and torture. Chavez has now strengthened the links between PDVSA and his executive, with the current PDVSA President Rafael Ramirez - who is also the Minister for Petroleum - telling managers that PDVSA is "red from top to bottom [....] Those who do not feel comfortable [supporting Chavez] should give their jobs to a Bolivarian".

Read more.

Tar sands impact the health and human rights of people at various stages of the life of a project. As stated above, the production of the tar sands contaminates surrounding water causing direct health impacts. Infact many of the toxins which leak into the water have been linked to elevated rates of cancer in downstream communities. Exploiting tar sands involves widespread deforestation and wildlife loss leaving devastating implications for the surrounding communities.


Environmental and climate impacts

The clearest and most obvious concern of this project is the fact that the tar sands are one of the key contributors to climate change. This is mostly attributed to the size of tar sands deposits and their unusually high greenhouse gas emissions. It is the process of converting the sands to oil that is one of the key concerns as about three barrels of natural gas are used to create one barrel of tar sands oil.

Apart from the potential recurrence of the local environmental damage associated with tar sands production, is the size of the deposits being explored, which will mean the release of huge amounts of GHG into the atmosphere.

At the same time, the localized environmental impacts are also of concern. There are various local environmental effects: from forest destruction, loss of wildlife, water contamination and more. In order to develop the tar sands forests are usually clear cut, leaving habitats destroyed, wild life lost, and even the carbon capture from the forest is also affected. During tar sands production contaminated water may also leak to the rivers, containing arsenic, mercury, and various carcinogens, all of these are known to cause cancer and kill local wild life.

Read more.

Companies

ENI

Italy
Profile
Website

Gazprom

Russian Federation
Profile
Website

Indian Oil Corporation

India
Website

Lukoil

Russian Federation
Profile
Website

NKK

Russian Federation
Website

Oil and Natural Gas Corporation

India
Website

Oil India Limited

India
Website

PDVSA

Venezuela
Website

Petronas

Malaysia
Website

Repsol

Spain
Website
No companies
News
BankTrack
Partners
Blog
External
BankTrack news BankTrack blog Partner news Partner blog

Venezuela downplays oil tax hike

2011-05-02 | Financial Times
BankTrack news BankTrack blog Partner news Partner blog

Venezuela may yield twice as much oil as was thought

2010-01-25 | Venezuela | scitizen.com
BankTrack news BankTrack blog Partner news Partner blog

Venezuela oil 'may double Saudi Arabia'

2010-01-23 | Venezuela | BBC News
BankTrack news BankTrack blog Partner news Partner blog

Venezuela's oil policy: A sticky proposition

2009-09-03 | Caracas | The Economist
BankTrack news BankTrack blog Partner news Partner blog

After Venezuela, ConocoPhillips may redouble Canada efforts

2007-06-17 | Canada | Tar Sands Watch
BankTrack news BankTrack blog Partner news Partner blog

Venezuela increases taxes on oil companies in Orinoco oil belt

2006-05-09 | Venezuela | Venezuelanalysis.com
Resources
Documents
Images
Links
2013-07-26 00:00:00

Oil Sands - Sector Policy

Bank policy
2013-07-26 00:00:00 | BNP Paribas
2011-05-30 00:00:00

Marginal Oil : What is driving oil companies dirtier and deeper?

NGO document
2011-05-30 00:00:00 | Friends of the Earth Europe, Heinrich Böll Stiftung
2011-04-28 00:00:00

Tar Sands: Fuelling the climate crisis, undermining EU energy security and damaging development objectives

NGO document
2011-04-28 00:00:00 | Sarah Wykes and Steven Heywood
2011-04-28 00:00:00

An estimate of recoverable heavy oil resources of the Orinoco Oil Belt, Venezuela

Other document
2011-04-28 00:00:00 | World Petroleum Resources Project

General pics

2011-05-02

Oil sands truth: shut down the tar sands

Heavy Oil Resources of the Orinoco Oil Belt, Venezuela

One of the Largest Recoverable Oil Accumulations in the World. Republished from a USGS Fact Sheet from October 2009.

The Oil Drum: Tech Talk- past, present, and future Venezuelan oil production

Heavy Oil and Tar Sands

World Resource Institute discussion on tar sands

Fair Pensions: Tar Sands

NGO challenging tar sands
Updates

2011

2011-05-09 00:00:00 | Latest update

The Petrocedeno block is being operated by Total (30.3%) and Statoil (9.7%). The block produces about 170,000 barrels of upgraded oil per day, as well as 6,000 tonnes of coke and 900 tonnes of sulphur daily. Total was also compensated for more than $1 billion by the Venezuelan government for the partnationalisation of their share in the project. Total and Statoil initially stepped into the gap left by withdrawal of ConocoPhillips in 2006, signing a joint agreement with PDVSA for evaluation of the Petroanzoategui block. Although Total claimed that this agreement "demonstrate[d] the commitment of Total and PDVSA to maintaining their cooperation over the long term", in January 2010 the Ministry of Oil announced that the "Proposals submitted [...] did not meet the requirements", and that consequently PDVSA would be developing the block, which could contain 29 billion barrels of recoverable oil, alone.

Read more.

Send feedback on this profile
Sections
Banks Dodgy Deals Campaigns
Our campaigns
Banks and Climate Banks and Human Rights Banks and Nature
Our projects
Tracking the NZBA Banks and Russia Banks and Steel Tracking the Equator Principles Tracking the PRBs Find a Better Bank Banks and the OECD Guidelines
Media
News Publications
Raiffeisen Out! Bank.Green End Coal Finance Plastic Banks Tracker Defund TotalEnergies Financial Exclusions Tracker Equator-Complaints.Org Don't Buy into Occupation Banks & Biodiversity Forests & Finance Drop JBS StopEACOP Fossil-Free Finance
BankTrack
About BankTrack Organisation Our team Our board Our annual reports Funding and finances Guiding principles Our history BankTrack in the media Team up with us Our privacy policy Donate Visit us
Successes Contact BankTrack
Vismarkt 15
6511 VJ Nijmegen
The Netherlands
Contact@banktrack.org
Donate Mailing list Facebook Twitter Linkedin
©2023 BankTrack
BankTrack is a registered charity in the Netherlands (ANBI) - RSIN 813874658
Find our privacy policy here

Stay up to date

Sign up now for all BankTrack's news


Make a comment

Your comment will be reviewed, before being posted