• 4 minutes End of Sanction Waivers
  • 8 minutes Balancing Act---Sanctions, Venezuela, Trade War and Demand
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 14 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 26 mins US Military Spends at least $81 Billion Protecting OPEC Persian Gulf Oil Shipping Lanes (16% DoD Budget)
  • 4 hours Summit: Kim, Putin To Meet Thursday in Russia’s Far East
  • 4 hours Don't Climb Onto the $80+ Oil Price Greed Roller Coaster, Please.
  • 5 hours New German Study Shocks Electric Cars: “Considerably” Worse For Climate Than Diesel Cars, Up To 25% More CO2
  • 6 hours Deep Analysis: How China Is Replacing America As Asia’s Military Titan
  • 21 hours "Undeniable" Shale Slowdown?
  • 12 hours Populist Surge Coming in Europe's May Election
  • 19 hours Saudi Arabia Says To Coordinate With Other Producers To Ensure Adequate Oil Supply
  • 22 hours Gas Flaring
  • 21 hours How many drilling sites are left in the Permian?
  • 22 hours O&G now in the Magical Goldilocks Zone of $70 Brent
  • 23 hours Mueller Report Brings Into Focus Trump's Attempts to Interfere in the Special Counsel Investigation
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

Maduro Tightens Grip On PDVSA As Production Plunges

In a surprise move, Venezuelan President Nicolas Maduro named a National Guard major general as the new head of PDVSA and the country’s oil ministry. The appointment does not bode well for Venezuela’s troubled oil sector and economy: Manuel Quevedo is a former housing minister with no experience in energy, Reuters notes.

The purpose of the appointment seems to have nothing to do with oil. When he announced the change, Maduro urged his new appointee, Manuel Quevedo, to root out corruption from PDVSA. The new minister then tweeted that “We’re going to turn PDVSA into the sacred temple of the people!” vowing to bring the company closer to the ideals of Hugo Chavez.

The new appointment follows a string of arrests on corruption allegations, with more than 50 PDVSA executives detained since August as part of the government’s “crusade” on corruption. Last week, the Venezuelan authorities also arrested the president and six senior executives of PDVSA’s U.S. business, Citgo. At the time, Maduro said these will be tried as traitors. Five of these have dual Venezuelan and U.S. citizenship, but Caracas refused to release the U.S. nationals, with Maduro saying “These are people born in Venezuela, they’re Venezuelan and they’re going to be judged for being corrupt, thieving traitors.” Related: Who Gains The Most From The New Silk Road?

Amid the corruption crackdown, which some see as the government’s way of consolidating and strengthening its hold on the country’s oil industry, PDVSA 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.

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
  • RefMan on November 27 2017 said:
    When Maduro speaks of rooting out corruption, what he really means is that somebody not authorized has been stealing the money instead of passing it up the chain to Maduro.

    Ever wonder why Hugo Chavez's daughter is worth billions?
  • Ken Griffen on November 27 2017 said:
    Good thing shale is doing great according to Rick Perry and the (EIA) and not as bad as Harold Ham says. After all what does Harold Ham know he is just a hack.
  • royal phoenix on November 28 2017 said:
    Maduro is skating on very thin ice. Ceclia Flores nephews continue to sing like canaries.

Leave a comment




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