Venezuela strike costs Big Oil $6.7mln/day-report

www.forbes.com Reuters, 01.23.03, 8:16 AM ET

LONDON, Jan 23 (Reuters) - The general strike paralysing Venezuela is costing the top 10 international oil firms operating there a combined $6.7 million a day in lost revenue, according to energy analysts Wood MacKenzie.

Seven weeks into the strike, the accumulated impact on earnings is small for most of the companies operating in the world's fifth largest oil exporting nation.

However, in its study released on Thursday, WoodMac warned that it may take two months to get some marginal fields running normally again, and said there was potential for some long-term damage to the industry that delivers 50 percent of the nation's income.

"Only upon resumption of operations will the full implications for both near-term rehabilitation and longer-term reservoir management be known," WoodMac said.

According to WoodMac's figures, the biggest financial loser among the top 10 is French giant Totalfina Elf <TOTF.PA>, which is losing $1.4 million a day in net revenues after the payment of royalty but before tax and costs.

The world's fourth largest oil company, Totalfina is expected to report a 2002 net profit of about $6.5 billion -- equivalent to about $18 million a day.

WoodMac's study also itemised the effect on North American players ConocoPhillips, Exxon Mobil, PetroCanada, and ChevronTexaco.

It also assessed the impact on other European majors Royal Dutch/Shell, BP, ENI, Statoil and Repsol-YPF. See table below. In terms of national production, WoodMac said Venezuela output had slowed to between 400,000 and 600,000 barrels a day from a 2003 forecast of three million barrels a day. The world's biggest producer Saudi Arabia produces about 8.5 million barrels a day. The strike is aimed at forcing leftist President Huga Chavez to resign and accept elections.

COMPANY RIC LOST REVENUE ($ MLN/DAY Totalfina Elf <TOTF.PA> 1.4 ConocoPhillips (nyse: COP - news - people) 1.0 ENI <ENI.MI> 0.87 Exxon Mobil (nyse: XOM - news - people) 0.77 ChevronTexaco (nyse: CVX - news - people) 0.64 RD/Shell <RD.AS> <SHEL.L> 0.53 Statoil <STL.OL> 0.47 Repsol-YPF <REP.MC> 0.38 BP <BP.L> 0.31 PetroCanada 0.29