Lack of investment, payment delays hamper Venezuela oil output
By Marianna Parraga
CARACAS Aug 15 (Reuters) - Venezuela, which holds the world's largest crude reserves, is on track to suffer its steepest annual oil output drop in 14 years as it suffers the effects of an economic crisis and years of under investment and mismanagement, according to data seen by Reuters and interviews with company sources and workers.
The state-run oil company, Petroleos de Venezuela (PDVSA), is struggling to stem a production decline that has accelerated this year as a result of payment delays to suppliers, lack of investment in equipment, and poor planning in the country's vast oil fields.
In the 12 months to June, Venezuela's crude output fell 9 percent to 2.36 million barrels per day (bpd), while the Organization of Petroleum Exploration Countries (OPEC) has boosted its output by 4 percent, according to the group's official figures.
Venezuela's oil minister and PDVSA president, Eulogio Del Pino, last month confirmed a 220,000-barrel-per-day production decline -- around 8 percent -- so far this year compared with 2015.
However, he said the "circumstantial fall" had been "contained." The Oil Ministry later said the country's output rebounded in July to 2.54 million bpd, without giving comparative figures. The data have not yet been reported to OPEC.
PDVSA's statistics have been a matter of debate for years.
Internal trade and supply data seen by Reuters show that PDVSA's crude exports, which account for 94 percent of the country's hard currency income, fell to 1.19 million bpd in July, excluding independent sales made by its joint ventures.
PDVSA did not respond to a request for comment on its sales to customers. Continuación...