• 4 minutes US-backed coup in Venezuela not so smooth
  • 7 minutes Why Trump will win the wall fight
  • 11 minutes Oil imports by countries
  • 13 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 17 hours Climate Change: A Summer of Storms and Smog Is Coming
  • 15 hours Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 16 hours The Quick Read On MBS's Tour of Pakistan, India And China
  • 15 hours Teens For Climate: Swedish Student Leader Wins EU Pledge To Spend Billions On Climate
  • 16 hours BMW to add 2,000 more jobs at Dingolfing plant
  • 17 hours Iran Starts Gulf War Games, To Test Submarine-Launched Missiles
  • 18 hours Venezuela: Nicolas Maduro closes border with Brazil
  • 1 day Amazon’s Exit Could Scare Off Tech Companies From New York
  • 1 day Itt looks like natural gas may be at its lowest price ever.
  • 19 hours Saudi A to Splash $100 Bln on India
  • 12 hours Washington Eyes Crackdown On OPEC
  • 14 hours Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 1 day NEW FERUKA REFINERY
Alt Text

Oil Majors Double Down On Battery Investment

Oil majors are increasingly interested…

Alt Text

The Ultimate Tool To Prop Up Oil Prices

Investor interest in the oil…

Alt Text

An Underestimated Niche In Oil & Gas

Decommissioning obligations in the global…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

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

Trending Discussions


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




Oilprice - The No. 1 Source for Oil & Energy News