Government scores another victory in oil recovery

www.vheadline.com Posted: Wednesday, January 29, 2003 - 4:48:00 AM By: Robert Rudnicki

President Hugo Chavez Frias and his government have scored another important victory in the battle to recover Petroleos de Venezuela's (PDVSA) oil production, by lifting production levels above the one million barrel per day mark for the first time since the work stoppage started on December 2. 

The government has been able to achieve this milestone by concentrating efforts on newer fields where the recovery of wells has been easier, but may find it increasingly difficult to keep up this kind of momentum if older wells are not restarted. 

Energy Merchant LLC risk management vice president Ed Silliere told Reuters that "they are going for the lowest hanging fruit on the tree, the easiest to grab ... in a few weeks it is going to be a struggle."

Oil exports are also slowly beginning to recover, and are now around a third of normal levels, approximately 800,000 barrels per day. 

However, these exports made be affected when safety inspectors arrive in Venezuela next week to carry out assessment's of PDVSA Marine's shipping activities, after claims by striking workers that crews brought in to replace strikers lack experience and have caused several accidents.