Venezuelan oil exports rise 62 pct in week-shippers

www.forbes.com Reuters, 01.24.03, 10:02 AM ET

CARACAS, Venezuela, Jan 24 (Reuters) - Venezuelan oil exports jumped 62 percent in the week to Friday to 688,000 barrels per day, or 25 percent of capacity, as the government struggled to break a strike in the world's fifth largest exporter, shipping data showed on Friday.

The recovery in exports adds weight to reports of rising flows at the wellhead in the OPEC member state, where a bitter political conflict is being played out in the oil industry, a key supplier to the United States.

Oil exports in the seven days to Friday stood at 688,000 bpd, up from 424,000 bpd in the previous week, according to information from ship agents and port authorities. Venezuela exported 2.7 million bpd before the strike, which is intended to force President Hugo Chavez from office, and exports have averaged 519,000 bpd over the past four weeks.

"Exports are rising a bit, but they still face big problems getting foreign shippers to come back," said a Venezuelan ship agent. Chavez is trying to break the seven-week-old strike by using troops and replacement crews at the terminals, but many lack certification to handle oil, safety standards are poor and missing documentation make insurance risks high.

Most Venezuelan refineries are shut or severely crippled, and Caracas has resorted to importing big volumes of gasoline from international markets to ease severe fuel shortages. Three companies are regularly importing Venezuelan oil from mainland ports: U.S. refiner and marketer Citgo, fully owned by Venezuelan state company Petroleos de Venezuela; Lyondell Citgo, an affiliate; and Cuban state oil company Cupet.