Venezuelan private sector oil output continues to grow
15-01-99 Venezuela's private sector oil production continues to grow despite the new government's agreement to cut the country's total output, a top official said.
Although some producers have asked to cut throughput due to cash flow problems, overall private sector production is seen rising by 100,000 bpd to 500,000 bpd by the end of 1999, said Luis Giusti, president of PDVSA.
"We are at nearly 400,000 bpd and I think that it should rise by about 100,000 bpd in the private sector," he told.
He added that the increase would have to be agreed by the new government of Hugo Chavez.
Venezuela, a charter member of the OPEC, produced 3.02 mm bpd in December.
Chavez has promised to cut production down to 2.8 mm bpd in accordance with an international producer agreement last June and maintain overall output unchanged until the end of the year.
Giusti conceded that some marginal field operators had asked to cut Venezuelan production because of cash flow problems, but the overall level would still
rise.
The private sector currently produces oil from several marginal oilfields and two extra-heavy oil projects in the Orinoco region.
