Venezuelan state oil company to invest $37B by 2009 to boost production

The Associated Press

Venezuela’s state oil company plans to invest $37 billion by 2009 to improve production capacity by 32 percent, one of the corporation’s directors said June 22.

Nelson Martinez said Petroleos de Venezuela SA, also known as PDVSA, would increase production capacity from 3.8 million barrels per day to 5 million barrels per day under the investment plan.

“In this context, Venezuela is and will be one of the most important international oil suppliers,” Martinez told the state-run Venpres news agency.

Martinez said Venezuela, a top supplier to the United States and the world’s No. 5 oil exporter, is currently producing 3.1 million barrels of oil per day.

Venezuela is still recovering from a general strike last year that temporarily paralyzed oil production, costing the nation an estimated $7.5 billion.

President Hugo Chavez fired half of PDVSA’s work force for joining the strike, saying he would cut bureaucracy and improve efficiency.

Critics say the dismissals cost PDVSA critical manpower and expertise. Many new employees and technicians in the field lack experience and training, they argue.

Former PDVSA executives claim the government has exaggerated production figures, arguing that Venezuela’s total production is roughly 2.8 million barrel per day.