Petroleos de Venezuela says it's business as usual

The strike that began in December 2002 and acted as a catalyst for the company's reorganization has not changed Pdvsa or its objectives, according to Luis Marín, director and COO of Pdvsa. "We are in the same business. We haven't changed our focus," Marín said at a press conference in Houston May 5.

The strike that began in December 2002 and acted as a catalyst for the company's reorganization has not changed Pdvsa or its objectives, according to Luis Marín, director and COO of Pdvsa. "We are in the same business. We haven't changed our focus," Marín said at a press conference in Houston May 5.

Marín and other Pdvsa managers, along with Venezuelan ambassador to the US Bernardo Alvarez, discussed the future of Pdvsa and its production capacity. In their view, the future is bright.

Marín explained that reorganization was agreed to before the strike. The objective, he said, was to simplify a complex structure and to discard business units that were not working well. The new Pdvsa will optimize performance according to Marín.

Though the work stoppage last December was well planned, Marín said, it has not had a detrimental effect on production. Production is already up dramatically, Marín said, and will continue to rise. "By the end of the year, we will be producing 3.1-3.2 MMb/d."

This figure far exceeds those put forward by analysts. A Wood MacKenzie report published in January 2002 presented a comparison of output at that time and Wood Mackenzie's pre-shutdown production forecasts for 2003. The top 10 international oil companies in Venezuela were losing a combined $6.7 million/day in net revenue (after royalty, but before tax and costs) at that time. According to the Venezuelan government at that time, under revised Pdvsa production targets, the effects of the strike would cut national average annual production by 23% this year.

05/05/03

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