PdVSA President: Refining Capacity Currently 1.014M B/D

<a href=www.quicken.com>Dow JonesFriday, March 28, 2003 10:37 AM ET

CARACAS (Dow Jones)--The president of Venezuela's state oil company Petroleos de Venezuela SA, or PdVSA, said the country's refineries should be operating normally in about six weeks.

Total oil output, including refined products, currently stands at 3.14 million barrels per day, Ali Rodriguez added.

Refining capacity is about 1.014 million barrels per day Rodriguez said.

PdVSA is restarting its refineries which were all but shut due to a general strike that began Dec. 2.

Venezuela is shipping some products to Caribbean buyers, but they aren't yet up to "proper specifications for some markets," a company executive told Dow Jones Newswires last week.

Before exports to the U.S. can resume, PdVSA also has to "have talks" with buyers about their contracts, the executive said without going into detail.

As reported, PdVSA lifted force majeure for crude oil sales earlier this month but has maintained it on some products because its refineries aren't yet operating normally.

The company first declared force majeure, which suspends contracts under special circumstances, in the first week of December after oil workers joined the strike aimed at forcing President Hugo Chavez to declare early elections.

But Chavez has dismissed about 16,000 of PdVSA's roughly 40,000 strong workforce and is attempting to bring production and exports - which account for half of government income - back to normal without the strikers.

Opposition leaders blame Chavez's left-leaning policies for the country's economic crisis.

The economy contracted 8.9% in 2002, amid 17% unemployment and 32% annualized inflation sparked by a 46% devaluation of the bolivar. The currency lost a further 25% this year before currency sales were halted Jan. 21.

Chavez has said the problems are due to an "economic coup" led by his opponents.

PdVSA Web site: www.pdvsa.pdv.com

-Dow Jones Newswires; 58212 564 1339; venezuela@dowjones.com

Dow Jones Newswires 03-28-03 1037ET