STATE OF ZULIA INVESTS IN AN OIL-RICH FUTURE

State of Zulia

MANUEL ROSALES
“We have a great number of important projects in development,” Governor of the state of Zulia
Manuel Rosales.

On the banks of the upper reaches of the River Limón in the state of Zulia are houses built on stilts in the same style as those once looked upon by Italian mapmaker and explorer Amerigo Vespucci five centuries earlier. The sight made him think of Venice only smaller and so was born the name ‘Venezuela’.
Zulia is the most populated state in Venezuela and contributes 20% of national GNP. The state is the country’s largest producer of meat and dairy products but its fame comes from its oil wealth. Last year Zulia produced more than half the country’s quota. Zulia’s oilfields have been in production a long time and the maturity of the deposits means many wells are not working to capacity. Huge investment is required in maintenance and new infrastructure at a time when the government has earmarked 60% of next year’s budget for exploration, largely in prospects opening up on the eastern side of the country. Nevertheless, 625 wells were drilled in Zulia in 2000 and new exploration is about to begin in the area south of Lake Maracaibo, in the Ambrosio gas field and in South West Zulia along the Trujillo state line.

Lake Maracaibo is the largest in the country and one that lends its name to the state capital city. The lake is contaminated from industrial spillage and inadequately treated sewage pouring in from the city over the years. The area as a whole is in severe need of a clean up. The launch of the country’s National Development Plan has done much to relieve the state government from the pressure it was under during the last recession.
Many new infrastructure projects are now in development. The Puerto America project consists of a deep-water cargo-handling port in the zone where Lake Maracaibo meets the Gulf of Venezuela. The port will be an entry and exit point for coal, oil, cement, grain, containers and tourists. Due to its proximity to the Panama Canal and the U.S. coast, the port will also provide Venezuela with access to new international markets. A rail connection is also being built from Puerto America to the town of Guasdualito in the southern interior. Some 70% of Zulia’s population lives in the north of the state where there are vast tracts of agricultural land in need of irrigation.

“We are working on an integral plan to maintain our dams, improve our reservoirs, pumping systems and water distribution networks,” says state governor, Manuel Rosales. “We also need to find alternative sources of fresh water so we are constructing the El Diluvio dam in joint venture with the national government and the Brazilian company, Odebrex, who are going to build the irrigation system. We are discussing bringing water from the north of the state and this would provide us with enough to irrigate the plain of Mara-caibo and for the provision of fresh water for the city itself.”

Last year, Zulia produced over half of Venezuela’s total oil output

There is also a plan to construct irrigation channels from the river Limón, river Guasare and the El Brillante reservoir with additional storage reservoirs adjacent to these sources. A 35km-long dyke is to be built along the river Limón before it enters the Sinamaica lagoon to prevent salt contamination of the fresh water. In parallel to these developments, local communication networks are going to be improved and local water and irrigation systems will tie in to the El Diluvio system to improve conditions in the smaller towns of the area. Sewage treatment plants in Maracaibo are to be upgraded so that treated water will be of a quality to irrigate the surrounding land. This will also improve the quality of the treated water that passes into the lake. A second water management and drainage project is planned for the south of Zulia, one of the most productive agricultural areas in Venezuela.

The National Development Plan has also approved the construction of line one of a new Metro system in Maracaibo that will transport over 250,000 passengers on a daily basis. “The licence has been won by the German company Siemens,” says Manuel Rosales, “and will generate 10,000 new jobs and change the image of the city.” Maracaibo is the second largest city in the country and its wealth is mainly based on the revenues of the petrol industry.

New infrastructure projects such as Puerto America are key to Zulia’s future prosperity.
New infrastructure projects such as Puerto America are key to Zulia’s future prosperity.

Continual development of the petrochemical industry is fundamental to the region and requires huge amounts of government and external private investment. The petrochemicals project is now in its final phase and, once completed, will create an entirely new industrial sector, manufacturing synthetic fibres, engineering quality plastics and chemical and petrochemical products vital to the country as a whole. It will also generate 100,000 stable and well-paid jobs. “We have a great number of important projects in development,” says Mr. Rosales. “In Zulia we have had a lot of ideas for many years but they have always remained ideas. Now we are advancing in alliance with the national government.”

FOR FURTHER INFORMATION PLEASE CONTACT SUMMIT COMMUNICATIONS AT:
1040 FIRST AVENUE, SUITE 395, NEW YORK, NY 10022-2902. TEL: (212) 286-0034 - FAX (212) 286-8376
E-MAIL: info@summitreports.com