Our interviewee, engineer Lino Carrillo, ETP Coordinator, describes in detail in this interview what its implementation would mean for a new democratic government in Venezuela. He elaborated on its objectives, synergies with the electricity sector, and benefits for the country’s economy.
How would you describe the Emergency Tactical Plan?
The ETP is the plan for the first 100 hours and 100 days with the aim of taking institutional control of the national oil industry, currently in the hands of PDVSA.
The plan establishes a set of organizational, operational, and tactical actions aimed at ensuring the effective and immediate governance of all core and support activities of the industry once the new government takes office. Its implementation seeks to:
- Take control of industry operations to strengthen security, operational sustainability, and improvements, as a foundation for the new government.
- Lay the groundwork to maximize the recovery of industrial asset value through private investment under the vision of the “Energy Hub of the Americas.”
Why do you consider the ETP to be the right choice to initiate the transition of government in the oil industry? How long do you estimate it will take?
The ETP is the only plan that exists with the level of detail and availability of managerial and professional personnel from former PDVSA employees who have in-depth knowledge of both core operations and support functions. This fact provides the highest probability of success and takeover in the first days and weeks of a new government.
Let me explain to support what I am saying. The ETP establishes as a priority the implementation of Operational Improvements under leadership knowledgeable in the areas of standards of excellence in corporate governance, safety, and reliability.
The plan has been designed to handle scenarios that will be faced with detailed plans and assumptions for all functions—it integrates and analyzes the entire value chain and functions under austere and transparent management.
It also takes into consideration the treatment of personnel currently working at PDVSA and proposes an approach by the group that makes up the ETP based on respect for existing professionals and technicians. The objective is to integrate new personnel with existing personnel. Under this premise, an Entry Protocol and a Code of Conduct have been developed, which define the criteria for achieving what is proposed in the plan for labor peace.
Once the plan is activated by the new PDVSA authorities, ETP staff are clear that entry to the facilities must be in compliance with all the safety standards that once prevailed in the industry, with order and adherence to the law. Likewise, legal and personal protection is to be provided to all members of the ETP team and the new industry authorities.
Likewise, the ETP establishes the initiation of internal and external communication processes to publicize the new authorities and the new transparent and efficient management model. This will allow for more effective integration of the new teams with existing personnel and enable priority attention to be given to neighboring communities and other key audiences for the industry’s activities.
Furthermore, in order to exercise effective control over all core industry functions, the plan establishes the start of the activities of the Operations Coordination Committee. This committee will include the functions of crude oil production (E&P), refining, gas production and distribution, both natural gas and gas cylinders, petrochemicals, joint ventures, the domestic fuel market, and trade and supply, which heads the committee.
Based on the uncertainty surrounding the safety of facilities and personnel, and in order to exercise effective control over all company functions, Situation Rooms will be activated in all regions, with the main one located at the company’s headquarters in La Campiña. This room will receive reports at predetermined intervals to keep track of everything that is happening in the regions and thus keep the new company authorities and the National Executive informed in real time about the progress of the ETP and any developments that could hinder its implementation.
Once the initial stages of institutional takeover described above have been completed, the incoming personnel will focus on conducting operational, financial, and functional management assessments. It is expected that these initial assessments will lead to the implementation of necessary adjustments to the plans envisaged for each function.
Finally, the plan aims to work with the support of joint venture partners, with whom gas licenses are operated, and with service companies and parts and equipment suppliers, with whom other cooperation agreements will be sought in line with transparent business management. Its direct relationship with the group responsible for managing the country’s electricity generation industry is a priority, and to this end, it has been integrated in terms of the needs required by both organizations to work symbiotically.
The plan will show early victories that will demonstrate the benefits and progress of the new model for managing and administering state resources and assets.
The duration of the plan will depend on the control achieved over the industry and the decisions made by the new authorities and the National Executive regarding the speed with which private companies will be incorporated into the entire value chain. The plan is scheduled for the first 100 hours (taking control), 100 days (evolution of activities and achievement of early victories), and will continue for as long as the new authorities deem necessary.
How many Venezuelan professionals are participating, and in what areas are they specialized?
The plan has nineteen function coordinators, covering all core (operational) organizations and enabling or management support organizations. Each group is organized by a representative at headquarters as the functional head, and in regions according to existing operations. In total, we have around 500 professionals, technicians, and managers who have been working on the details of each function for years. The vast majority are in Venezuela, with a negligible percentage forming part of the diaspora. All have kept up to date with technological trends in their respective areas.
What scenario are the members of the ETP considering for entry into the IPPN?
The plan deals with two main scenarios. One involves collaboration with those currently working in the company, and the other involves confrontation.
It is anticipated that in the collaboration scenario, representatives of the current regime, political activists, and even members of the state’s repressive forces disguised as workers may remain. In this case, entry protocols have been developed that establish actions to be taken to control potential saboteurs. It has been assumed that the remaining personnel will collaborate and contribute their knowledge to the success of the new corporate management and the country. These personnel will be vital in understanding what is good and identifying any hidden vices that may be left behind by those leaving or saboteurs, and thus controlling them.
In the event of confrontation, the plan establishes the unrestricted support of law enforcement agencies to take control of the company’s key operations and functions. The critical aspects of the functions and processes to be followed by incoming personnel and companies supporting the planned management have been identified.
How would the synergy between the ETP and the electricity sector work?
As I mentioned earlier, the electricity sector and the oil industry have a symbiotic industrial relationship. The industry requires electricity supply, and the electricity sector needs gas and, in some regions, diesel or residual fuel for thermal generation. So far, we have worked and continue to interact constantly with the group leading the government program in this area to align ourselves with the premises, capabilities, and synergies required by both.
What benefits would the implementation of the ETP generate for the reactivation of Venezuela’s economy and the leveraging of downstream and related industries?
The ETP marks the beginning of institutional control of the national oil industry. Stable, secure, and reliable operations will revive the country’s economy. Without the ETP, institutional control to produce the results required for the new government to respond to the needs of the population will be compromised due to disorder, rampant corruption in the company, and the priority given by the existing authorities to their political interests. The ETP provides the necessary steps to improve oil revenues, make them reliable, and thereby enable the implementation of the plans set out in the Venezuela Land of Grace government program.
Additionally, as I indicated at the beginning, the ETP will lay the foundations for achieving maximum recovery of the value of industrial assets through private investment, under the vision of the “Energy Hub of the Americas.” This will be a joint effort with the new authorities, as those implementing the ETP will provide valuable and accurate information on the conditions of all the industry’s operations and functions, the repairs required, and everything else necessary to ensure reliable operation. This information will be used to develop business proposals for the private sector that represent a win-win situation for both them and the country. The ETP does not have the development of the industry among its objectives. These activities will be led by the new authorities in accordance with the guidelines and objectives of the government program.
How is Venezuela envisioned to become the Energy Hub of the Americas?
The vision of the Energy Hub of the Americas is industrial development unlike anything ever seen in the country, and I would dare say in the world. This vision establishes that, in order to achieve the greatest recovery of the value of the nation’s assets, schemes must be promoted to integrate industry activities that start at the oil well and extend to the industrialization of refining streams to produce resins and other petrochemical products.
These types of proposals must have their own incentives that make them attractive to investors and allow the nation to benefit from the multiplier effects of the resulting economic activity, and with it, the population.
The innovative aspect of the Hub also establishes the integration of oil industry operations with those of the iron and steel industry and others. Business proposals have been designed that add value by producing more crude oil and substantially reducing the carbon footprint of both crude oil and iron ore exploitation, to give one example.
In addition, crude oil refining operations are harmonized with the production of CO₂, ammonia, and blue hydrogen, and the use of that CO₂ for enhanced oil recovery. Finally, the Hub incorporates the potential to electrify all industry operations with renewable energies, especially hydroelectric generation and the development of wind and solar generation.
No other country in the region has Venezuela’s wealth of natural resources or geographical location, which makes the country a niche of opportunities for the region and the development of the continent, ergo: the Energy Hub of the Americas.
Could you call on skilled workers in other countries to prepare to return to Venezuela?
Venezuela will be a land of grace, full of opportunities for all of us who have dreamed of a first-class country for everyone. In Venezuela, there are many professionals and industry experts who want to help achieve that vision for the country, and I am sure that they will be counted on. I believe that this participation will take place through private companies that will come to transform the industry into a first-world one. PDVSA will gradually disappear over time, and the best bet as a professional or technician is with the companies that will be tasked with rehabilitating assets and bringing the industry to its rightful place in the hemisphere.
As for the diaspora, there will be those who return and others who will not due to family commitments already rooted in other latitudes. However, I am of the opinion that the evolution of the country as a democratic state, the activities of the industry, and our people will touch the hearts of many and they will feel the need to return home. I am also of the opinion that many will return as employees of private companies that invest and establish operations in the country, and I believe that is where the majority of the diaspora will be.
The views expressed by Lino Carrillo are of his personal ownership and responsibility, and do not necessarily reflect the position of PDVSA Ad Hoc.
