WORLD TRADE
ORGANIZATIONS/CSS/W/69/Add.2
4 June 2003
(03-2883)
Council for Trade in Services
Special SessionOriginal:  English/
Spanish
COMMUNICATION FROM VENEZUELA
Negotiating Proposal on Energy Services
Addendum
The following communication has been received from the delegation of Venezuela as a
second addendum to its negotiating proposal on energy services (S/CSS/W/69) with the request that it
be circulated to Members of the Council for Trade in Services.
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1. In October 2001, Venezuela presented as an addendum to its main proposal, a Classification
List of Energy Services (document S/CSS/W/69/Add.1)
2. Immediately thereafter, Venezuela participated with seven other WTO Members, who
presented negotiating proposals in relation to energy services, in an informal Group for consultations
with the view of working out a classification of the energy services and defining what actual
commercial activities should be included in such  concept. Venezuela's approach was oriented to
develop a classification that would allow for conditions to be attached to the possible adoption of
specific commitments in this sector, consonant with  GATS Article IV provisions.
3. Paying great attention to the subject and deploying substantial resources, the Group carried
out through multiple meetings, presentations, teleconferences and other communications, a thorough
revision of documents contributed by the Members which generated results that Venezuela considers
very useful and highly favorable for the WTO negotiations. One of the documents reviewed and
discussed by the Group was a detailed version of the above mentioned list of energy services markets
initially presented by Venezuela.
4. The consultations in the Group trimmed and compacted the original list and established the
corresponding United Nations CPC Provisional codes for most of the markets in the list.  Without
having total consensus, the result was the "List of  Commercial Reality of Energy Services and
Energy Related Services" (CRL) which Venezuela now presents as a Second Addendum to its
negotiating proposal document S/CSS/W/69.
5. In most cases for which some Members of the above-mentioned group have expressed
reservations about some items in the list, it is so indicated in it.  Venezuela believes that the list is a
valuable instrument for WTO Members in their work  for negotiating specific commitments for energy
services.
6. The CRL is intended to cover all services tr aded in relation to all sources of energy . It
includes services acquired by the energy industry and services offered by it. In other words, it
comprises the whole market for services traded in the energy sector. The subdivisions of “upstream”S/CSS/W/69/Add.2
Page 2
and “downstream” services are intended only as aids to navigate in the List searching for items and
are determined by the conventional limit between before and after the production of the energy
resources. Thus, “upstream” are all the activities required to find and produce the resources, i.e. oil,
gas, coal, radioactive minerals, dam sites and the like.  Whereas, “downstream” are the activities
necessary to transform, transport and distribute the energy after the resource has been made available.
7. The CRL is subdivided into items or classes that follow the actual formation of service
markets in the economic and commercial reality.  In this sense, a separate service item is included
only if specialized suppliers have that particular service as the object of their trade and of their
commercial competition for the benefit of customers inside and outside the energy industry creating
thus a particular market.
8. The CRL accommodates the need to schedule differentiated market access and national
treatment conditions according to development objectives of developing country Members.Throughout the consultations of the Group, the List was adjusted to eliminate headings (markets) that
could be supposed to be subsumed in other headings. Thus the CRL became a compact reference
instrument without losing its capacity to facilitate differentiation.  In other words, with the support of
the CRL, scheduling specific commitments may be done with precision.
9. The continued use of the W/120 and UN-CPC Provisional classifications for scheduling
specific commitments is perceived among WTO Members as very important. Venezuela agrees with
this view.  This reflects the concern of WTO Members about the possible repercussions of introducing
new reference codes, such as the CPC v.1.0 or later, upon existing scheduled commitments.
10. Considering all this, the CRL is presented as a work in progress open to contributions from
other WTO Members.S/CSS/W/69/Add.2
Page 3THE COMMERCIAL REALITY OF ENERGY SERVI CES AND ENERGY RELATED SERVICES DRAFT FINAL
UPSTREAM
Only activities that are usually outsourced are
includedCPC prov  CORRESPONDENCE
Denomination Code Partial Comments
SERVICES FOR DISCOVERING AND
DEVELOPING ENERGY RESOURCES
1. GEOLOGICAL EXPLORATION
1.1. Exploration management services 86601-
86609
1.2. Mapping services Engineering related scientific
and technical consultingservices8675
1.3 Geophysical and geological services Engineering related scientific
and technical consultingservices8675
1.4 Hydrological and meteorological studies Engineering related scientific
and technical consultingservices8675
1.5 Exploration drilling Services incidental to mining 883
2. DRILLING AND COMPLETION OF OIL
AND GAS WELLS
2.1. On land site preparation and derricinstallation883
2.2 Off shore rig positioning and preparation Towing and pushing services 7214
2.3.  Drilling 883S/CSS/W/69/Add.2
Page 4Denomination Code Partial Comments
2.4.  Drilling bits services 883
2.5.  Casing and tubular services 883
2.6.  Mud engineering and supply 883
2.7.  Solids control 883
2.8.  Fishing and downhole special operations 883
2.9.  Lodging and catering Other lodging services n.e.c. 64199
2.10. Wellsite geology and drilling control 883
2.11. Core taking 883
2.12. Core analysis and other laboratory tests Engineering related scientific
and technical consultingservices
Technical testing and analysis
services 8675
8676
2.13. Electrical, acoustic and radioactive logging Technical testing and analysis
services8676
2.14. Well testing 883
2.15. Other wireline services 883
2.16  Supply and operation of completion fluids
(brines)883
2.17  Supply and installation of completion
devices883S/CSS/W/69/Add.2
Page 5Denomination Code Partial Comments
2.18 Cementing {pressure pumping} 883
3. OIL AND GAS PRODUCTION RELATED
SERVICES
3.1. Stimulation services (fracturing andacidising) (pressure pumping)883
3.2. Workover and well repair services 883
3.3 Plugging and abandoning of wells 883
3.4. Reservoir engineering and secondary
recovery servicesEngineering related scientific
and technical consultingservices8675 Part
3.5. Design, construction and installation of
production equipmentConstruction work
Engineering servicesIntegrated engineeringservicesEngineering related scientificand technical consulting51
867286738675Part
PartPartPart
3.6. Early production control services 883 Some Members may consider this activity as
manufacturing.
3.7. Firefighting and em ergency cont rol services
provided on oil and gas fields.883
3.8. Oil spill control services Nature and landscape
protection services94060 PartS/CSS/W/69/Add.2
Page 6Denomination Code Partial Comments
DOWNSTREAM
SERVICES FOR DESIGN, CONSTRUCTION,
OPERATION AND MAINTENANCE OFENERGY FACILITIES, INCLUDINGNETWORKS
4.- DESIGN AND CONSTRUCTION OF
FACILITIES TO PRODUCE, TRANSFORM,
AND SUPPLY ENERGY.
4.1 Engineering and Construction Construction workEngineering
servicesIntegrated engineeringservicesEngineeering relatedscientific and technical
consulting services51
86738675
4.2. Design and contruction of drillingplattforms, excluding construction of mobilefloating units (CPC Version 0.1: CPC 4932 and4939)Engineering design services
for industrial processes andproductionFor constructions for mining
and manufacturing.86725
5136
4.3 Debugging, commissioning and start up Installation work 516 Part
5.- OPERATION AND MANAGEMENT OF
ENERGY FACILITIES (EXCLUDINGNETWORKS)
5.1 Management and Engineering services
applied to the operation of oil, gas and coal
fieldsSome activities may fall outside the scope of
GATS.
5.2 Liquefaction and regasification of natural
gas for transportationSome Members may consider these activities as
manufacturing, while others consider them asservices.
5.4 Coal and crude oil refining, reforming andpurification servicesSome Members may consider these activities as
manufacturing, while others consider them asservices. Some Members may consider onlysome of the activities included to be services.S/CSS/W/69/Add.2
Page 7Denomination Code Partial Comments
6.-  OPERATION AND MANAGEMENT OF
ENERGY NETWORKS
6.1. Transmission and distribution of electricity
6.2 Pipeline transportation and distribution 7131
6.3. Services related to the operation of energynetworks   Central network control servicesPower management and monitoring services887
7.-MAINTENANCE OF ENERGY
EQUIPMENT AND FACILITIES,INCLUDING NETWORKS
7.1. Plant and equipment evaluations, damageassessments, repair studiesManagement consulting
servicesServices related tomanagement consulting
Engineering services
Technical Testing andAnalysis865
8668672
8676Part
PartPart
Part
7.2. Reinstallation, upgrade and refurbishment
activities for facilities and equipmentRepair services incidental to
metal products, machinery and
equipmentConstruction work
Installation work886
51
516Part
7.3. Preventive and periodic maintenance
services of equipmentRepair services incidental to
metal products, machinery and
equipment886 Part
7.4. Offshore Vessel Transportation and Supply
Services
8.- ENVIRONMENTAL RELATEDSERVICES FOR THE ENERGY INDUSTRYS/CSS/W/69/Add.2
Page 8Denomination Code Partial Comments
8.1  Decommissioning of energy facilities and
networksSewage and refuse disposal,
sanitation and otherenvironmental protection
services940
8.2 Remediation of contaminated areas and
facilitiesSewage and refuse disposal,
sanitation and otherenvironmental protectionservices940
8.3 Handling, treatment and disposal of waste
from energy facilitiesSewage and refuse disposal,
sanitation and otherenvironmental protectionservices940
8.4 Pollution control a nd monitoring services Sewage and refuse disposal,
sanitation and other
environmental protectionservices940
SERVICES FOR THE
COMMERCIALIZATION OF ENERGY
9.-WHOLESALE SUPPLY OF ENERGY
9.1 Wholesale activities for energy, energy
products, and fuels62271
9.2 Wholesale of electri city, steam, hot water
and town gas
9.3 Trading and brokering for energy, energyproducts, and fuelsSales on a fee or contract basis
of fuels (…..).     Otherservices auxiliary to financialinter. n.e.c.62113
81339Part
9.4  Energy related liquid or gas storage
activitiesBulk storage services of
liquids or gases7422S/CSS/W/69/Add.2
Page 9Denomination Code Partial Comments
10.-RETAIL SUPPLY OF ENERGY
10.1 Retail sale activities for energy, energy
products, and fuels63297
10.2 Retail sales of electricity, steam, hot water
and town gas
9.3 Retail sales of motor fuels 61300
10.4 Retail customer attention services Services incidental to energy
distribution8870 .
10.5  Customer call-out activities Services incidental to energy
distribution8870
OTHER ENERGY SERVICES
11.-ENERGY CONSULTING SERVICES
11.1 Consultancy and engi neering services for
energy effiency and savingManagement consulting
servicesEngineering services865
8672
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