Venezuela state oil com­pany PDVSA re­ports sharp drop in rev­enues

Muscat Daily - - BUSINESS -

Caracas, Venezuela - Venezuela’s state-owned oil com­pany PDVSA re­vealed on Satur­day that its rev­enues have dropped sharply, spelling bad news for a cri­sis-torn coun­try heav­ily re­liant on its ex­ports of crude oil.

Rev­enues in 2016 slumped 33.5 per cent com­pared to the pre­vi­ous year, the com­pany said in a re­port pub­lished on its web­site. PDVSA reg­is­tered US$48bn in in­come for last year, com­pared to US$72bn in 2015.

The av­er­age price of a bar­rel of Venezue­lan crude de­clined 21 per cent to US$35.15 in 2016, down from US$44.65 in 2015, it said.

The coun­try’s Oil Min­istry has pro­jected that Venezue­lan crude would fetch US$43.72 a bar­rel in 2017, but oil prices re­main de­pressed glob­ally.

The South Amer­i­can na­tion, an OPEC mem­ber with the largest proven oil re­serves in the world, re­lies on crude ex­ports for 96 per cent of its for­eign cur- rency and for around half of gov­ern­ment in­come.

The United States is its big­gest cus­tomer, buy­ing roughly 40 per cent of out­put. Much of the rest goes to re­pay loans from China and Rus­sia.

Ac­cord­ing to PDVSA, Venezuela’s oil pro­duc­tion has slumped steadily in the past two years, go­ing from 2.9mn bar­rels per day (bpd) in 2015, to 2.57mn bpd last year and 1.9mn bpd this year.

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