Debt repayments in crude cripple poorer oil producers

martes 24 de mayo de 2016 02:00 GYT
 

* Angola, Venezuelan debt to China guaranteed with oil

* Iraq, Nigeria need to repay debts to oil majors with oil

* Lack of funding and investment leads to output declines

* Graphic on OPEC savings: tmsnrt.rs/1WKI4Is

By Libby George and Dmitry Zhdannikov

LONDON, May 24 (Reuters) - Poorer oil-producing countries which took out loans to be repaid in oil when the price was higher are having to send three times as much to respect repayment schedules now prices have fallen.

This has crippled the finances of countries such as Angola, Venezuela, Nigeria and Iraq and created a further division within the Organization of the Petroleum Exporting Countries.

Ahead of an OPEC meeting next week, poorer members have continued to push for output cuts to lift prices but wealthier Gulf Arab members such as Saudi Arabia, which are free of such debts, are resisting taking any action despite prices falling 60 percent in the past 2 years.

Angola, Africa's largest oil producer has borrowed as much as $25 billion from China since 2010, including about $5 billion last December, forcing its state oil firm to channel almost its entire oil output towards debt repayments this year.   Continuación...