Home

PDVSA EXPECTED TO CUT 1992 BUDGET

April 13, 1992

Venezuela's government will order a cut of about $692 million in the 1992 capital budget of state oil company Petroleos de Venezuela SA. That works out to about 7% of the total budget of 646.8 billion bolivars ($9.95 billion). Most of the cuts will be in capital projects intended to raise crude oil productive capacity to 2.921 million b/d by yearend. Pdvsa had planned to jump productive capacity by about 117,000 b/d this year.

Venezuela's government will order a cut of about $692 million in the 1992 capital budget of state oil company Petroleos de Venezuela SA.

That works out to about 7% of the total budget of 646.8 billion bolivars ($9.95 billion).

Most of the cuts will be in capital projects intended to raise crude oil productive capacity to 2.921 million b/d by yearend.

Pdvsa had planned to jump productive capacity by about 117,000 b/d this year.

However, reduced crude production levels required by a recent quota agreement among members of the Organization of Petroleum Exporting Countries and low prices caused by weaker than expected demand will furnish Pdvsa less profits to be spent on capital projects.

Pdvsa was reported producing an average 2.147 million b/d in mid-March, down from 2.3 million b/d in February, prior to the OPEC accord (OGJ, Feb. 24, p. 36).