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South Korea Says It Plans $11.14 Billion Projects in Venezuela

South Korea and Venezuela plan five heavy industry projects in the Latin American nation, including a crude oil distribution network, which the Korean government estimates may be worth a total $11.14 billion.

Petroleos de Venezuela SA, the state oil company, and Pequiven SA, Venezuela’s state chemicals company, signed non- binding agreements in Seoul for the projects, Korea’s Knowledge Economy Ministry said in an e-mailed statement today.

An $8.8 billion crude oil project, involving Petroleos and a group including Daewoo Engineering & Construction Co. (047040), will build a pipeline linking the Orinoco oil fields in the Junin area southwest of Caracas the capital to oil storage tanks and a harbor to be built in the coastal area of Araya, the ministry said.

The state oil company and Hyundai Engineering & Construction Co. plan to build a $1 billion, 900-megawatt petroleum coke-fired power plant in Carabobo, Orinoco, and an $800 million refinery capable of processing 60,000 barrels a day in Junin, the ministry said.

Venezuela’s oil company, known as PDVSA, will also build a $500 million heavy oil storage facility with SK Engineering & Construction Co. Pequiven and SK Engineering will construct a $35 million petrochemical plant with a capacity to produce 800,000 tons of ethylene and other products a year, the ministry said.

To contact the reporter on this story: Sangim Han in Seoul at sihan@bloomberg.net

To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net

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