Venezuela PDVSA head says output over 1.5 mln bpd

www.forbes.com Reuters, 01.31.03, 10:16 AM ET

CARACAS, Venezuela, Jan 31 (Reuters) - The president of Venezuelan state oil firm PDVSA said Friday that the nation's oil output has topped 1.5 million barrels per day (bpd) and could reach 1.8 to 1.9 million bpd next week as four Orinoco upgrading plants are restarted.

PDVSA President Ali Rodriguez told reporters that January oil exports had doubled from a low of 15 million barrels in December to 30 million barrels in January. Some of the production was being shipped to storage in the Caribbean to sell to customers still nervous about sending vessels to the world's No. 5 oil exporter.

The PDVSA chief said he had fired more than 5,300 striking workers as the government moved to break the eight-week-old opposition strike against President Hugo Chavez. PDVSA would also cut costs by 40 percent and slash investment by 30 percent to stave off the impact of the stoppage.

As part of its restructuring, Rodriguez said PDVSA would probably sell off some assets, but he declined to provide details. He said that the oil firm would meet its debt payments of more than $1.5 billion this year, but it would not issue bonds until Venezuela's economic situation improved.

The opposition strike, started on Dec. 2 to press Chavez to resign and accept elections, has driven Venezuela's fragile economy deeper into recession and rattled global energy markets jittery over U.S. preparations for a possible attack on Iraq.