PdVSA to invest up to $ 13 bn this year to boost output

Jun 01, 2009 02:00 AM

Petroleos de Venezuela, the state oil company, will invest $ 12 bn to $ 13 bn this year and "at least" as much again next year as it seeks to expand crude output by about two-thirds.
Investment spending will depend on oil prices, Hercilio Rivas, the company's research and development director, said. The company needs a "floor" of $ 70 a barrel to reach a target to pump 5 mm bpd in 2020, up from 3 mm today, he said.

A 54 % drop in oil prices since a record in July forced the company to cut spending to $ 14 bn from $ 24 bn this year, PdVSA President Rafael Ramirez said in an April 28 conference call, demanding a pay freeze from workers.
PdVSA's investment plan will boost the company's output to 4.8 mm bpd by 2013, Ramirez said last year. Today's output reflects mandatory OPEC reductions, Rivas said.

Lower revenue was causing PdVSA to fall behind on payments to contractors including Williams Cos., Ensco International and Helmerich & Payne.
Helmerich is closing down rigs as contracts end, contributing to a decline in Venezuela's count of active drilling rigs to 65 in April from 82 a year earlier, according to Baker Hughes.

Market Research

The International Affairs Institute (IAI) and OCP Policy Center recently launched a new book: The Future of Natural Gas. Markets and Geopolitics.


The book is an in-depth analysis of some of the fastest moving gas markets, attempting to define the trends of a resource that will have a decisive role in shaping the global economy and modelling the geopolitical dynamics in the next decades.

Some of the top scholars in the energy sector have contributed to this volume such as Gonzalo Escribano, Director Energy and Climate Change Programme, Elcano Royal Institute, Madrid, Coby van der Linde, Director Clingendael International Energy Programme, The Hague and Houda Ben Jannet Allal, General Director Observatoire Méditerranéen de l’Energie (OME), Paris.

For only €32.50 you have your own copy of The Future of Natural Gas. Markets and Geopolitics. Click here to order now!


Upcoming Conferences
« May 2018 »
1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31

Register to announce Your Event

View All Events