www.vheadline.com Posted: Thursday, January 30, 2003 - 2:52:25 AM By: Robert Rudnicki

Central Bank of Venezuela (BCV) officials are set to meet their Colombian counterparts in Caratagena, Colombia, in the next few days to assess what effects Venezuelan exchange rate controls might have on its ability to meet debt payments.

• The concerns revolve around the issue that businessmen in Venezuela may be unable to pay Colombian businessmen what they owe them, once exchange rate controls are put in place.

The government announced a suspension of foreign exchange trading last week, which was extended by a further five days earlier this week, as the BCV and the Finance (Hacienda) Ministry decide what measures to take to prevent the bolivar from losing anymore ground on the exchange market.

Since the start of this year the bolivar was lost around 25% of its value as concerns over the long term effects of the strike lead many Venezuelans to seek the relative safety of the US dollar.

Colombian Finance Minister Roberto Junguito says "in the next few days these payment concerns will be discussed by central bank directors from Colombia and Venezuela."

www.vheadline.com Posted: Thursday, January 30, 2003 - 2:57:23 AM By: Robert Rudnicki

According to striking Petroleos de Venezuela (PDVSA) managers, who have already been sacked for their abandonment of their positions in support of the Coordinadora Democratica-led national work stoppage, Venezuelan oil production fell to 1.04 million barrels per day on Wednesday, down from Tuesday's 1.05 million. 

The rebel workers claim that 692,000 barrels per day is coming from production in the east of Venezuela, while production in the oil rich west of the country was languishing at around 260,000 barrels per day. The striking managers estimate production in the south to be around 92,000 barrels per day. 

However, eastern production levels are forecast to rise by as much as 300,000 barrels per day over the coming few weeks. 

The strikers' figures remain short of government estimate, with President Hugo Chavez Frias claiming that PDVSA is now producing 1.32 million barrels per day, while PDVSA president Ali Rodriguez Araque has said the production is well over one million barrels per day.

Although unclear, estimates show that over 400,000 barrels per day is now being refined, with around half of this coming from the Puerto La Cruz refinery in eastern Venezuela.

www.vheadline.com Posted: Thursday, January 30, 2003 - 2:59:22 AM By: Robert Rudnicki

According to a report published in the El Universal newspaper, the Venezuelan government is hoping to cut Petroleos de Venezuela's costs by as much as 51% by carrying out the planned restructuring of the company it announced several weeks ago.

PDVSA president Ali Rodriguez Araque announced plans to split the company into PDVSA East and PDVSA West, thus cutting out many administrative costs, mainly at the company's Caracas headquarters, where most workers continue to support the opposition's work stoppage.

The huge cost cutting is planned to come from layoffs, tax reforms, asset sales and the opening up of certain ventures to private participation.

If the cost cutting is a achieved, operating costs would be slashed by nearly $2 billion, helping the company to cope with lost sales of around $520 million per month.

Over 5,000 PDVSA workers have already been sacked and a further 1,000 are expected to be fired in the company's western operations some time over the next few days.

www.vheadline.com Posted: Thursday, January 30, 2003 - 3:03:24 AM By: Robert Rudnicki

Venezuelan hot briquetted iron producer, Venprecar, has been forced to suspend operations because of a continued gas shortage brought about as a result of the eight-week-old opposition work stoppage. The company is currently not receiving any gas supplies and needs around 22 million cubic feet per day to continue its operations.

Apparently Petroleos de Venezuela (PDVSA) officials have promised to restart supplies to the plant, but an exact time or date has not been given. It is also unclear how serious an affect this will have on the company's yearly production figures, but this will surely depend on the length of time gas supplies remain unavailable.

Venprecar is a subsidiary of International Briquette Holdings (IBH), which recently decided to give up its US listing, as the expense was to high to be justifiable. The company will however maintain its listing on the Caracas Stock Exchange.

sg.biz.yahoo.com Thursday January 30, 10:54 PM

Venezuela/Force Majeure -2: Reach 2.5 Million B/D End Feb CARACAS (Dow Jones)--Venezuela's state-owned oil monopoly Petroleos de Venezuela is likely to lift its force majeure by the end of February when crude oil production is set to reach 2.5 million barrels per day, the company president said on PdVSA's Web site Thursday.

"We already have started to supply our main clients, like the United States, and very soon, most likely by the end of February we will defeat the force majeure," Ali Rodriguez said on PdVSA's Web site. A declaration of force majeure three days after the nationwide strike started Dec. 2 temporarily released the company and its clients from contractual obligations.

Rodriguez said also that crude production will hit its official OPEC quota of 2.819 million b/d by the end of March this year. Current production stands at 1.3 million b/d, Rodriguez added.

PdVSA dissident staff estimate production at 1.04 million b/d while exports don't exceed 500,000 b/d. The country is in its ninth week of a nationwide strike as diplomatic efforts to seek a solution are being stepped up.

(MORE) Dow Jones Newswires 01-30-03 0954ET