Venezuela lifts contract suspensions on several petroleum products

www.sfgate.com Tuesday, February 25, 2003

(02-25) 13:37 PST CARACAS, Venezuela (AP) --

In another sign that Venezuela's oil industry is recovering from a strike, the oil minister said Venezuela was lifting a suspension on some production and export contracts.

Petroleos de Venezuela SA invoked a contract provision three days after an oil workers strike began Dec. 2 that temporarily released it and its clients from contractual obligations.

The provision has been lifted on production and export of three types of Venezuelan crude as well as liquified petroleum gas, Oil Minister Rafael Ramirez said Tuesday.

Some 35,000 of 40,000 PDVSA workers joined a general strike intended to oust President Hugo Chavez. The strike failed and was called off Feb. 4, though oil workers stayed off the job. The government has fired more than 15,000 strikers at PDVSA.

PDVSA President Ali Rodriguez says production now stands at 2.02 million barrels per day, compared to a pre-strike figure of 3.2 million barrels per day. Dissident staff say output is closer to 1.5 million barrels per day.

Before the strike, Venezuela was the globe's fifth-largest oil exporter and a top supplier to the United States.

Ramirez and Rodriguez were traveling to Washington to convince U.S. officials that oil company operations are almost back to normal.