• 4 minutes The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 38 mins Is Europe heading for winter of discontent with extensive gas shortages?
  • 19 hours Sand Powered Batteries for Heating Industries and Homes
  • 5 days Once seen as fleeting, a new solar tech proves its lasting power
  • 5 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 10 hours "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 10 hours "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 2 days Bloomberg - "Hedge Funds Hit by ‘Onerous’ ESG Rule Turn to Lawyers for Help"
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Venezuela’s PDVSA To Cut Costs By 50%

Venezuela’s state oil company PDVSA has launched a cost-cutting drive aimed at slashing expenses by half as the company continues to struggle with declining oil production and unpaid debts.

The company sent to all its divisions and joint ventures a list of reforms, declaring a “national economic emergency”. The reforms, however, must not affect daily oil production in any negative way, the memo circulated in the company said.

Some of the reforms involve suspending new projects that have not yet found financing and requiring joint venture partners to submit financing plans for the projects they develop. Videoconferencing will be encouraged, to replace costlier face-to-face staff meetings, and use of PDVSA airplanes and any other international transportation is to be reduced to a minimum.

The state of PDVSA is the same as the state of Venezuela: last week, Bloomberg reported, Venezuelan ambassadors and other diplomats were asked to renegotiate the rents of the embassy buildings or move to a cheaper location, as Caracas struggles with billions in unpaid debts and dwindling forex reserves that have shrunk imports and created shortages for many goods.

PDVSA, for its part, reported a 90-percent drop in its profit for 2016 and has been dealing with field and infrastructure mismanagement, huge debts of its own, and shortages in funds for basic operations such as field maintenance. The quality of its crude has also been worsening as a result of insufficient funds, with at least two cargoes of Venezuelan crude returned by U.S. clients because of unacceptable levels of water in the oil.

This year, daily crude production in Venezuela is set to fall by at least 250,000 barrels, and next year the pace of decline may accelerate, reaching 300,000 bpd. The monthly rate of decline this year has been 20,000 bpd. Last month, oil production fell to the lowest in almost three decades, and it looks like the trend will continue as state coffers empty and the recession deepens.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Kr55 on November 24 2017 said:
    What a disaster of a country. All expertise is running out as fast as it can. Production drop could be exponential as they try to cut even more. And all their equipment has been barely maintained for over 3 years now. Can probably expect a lot of bad accidents. Hopefully enough people have bailed out of working for nothing so they can't get hurt by everything falling apart.

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News