This is a source for analysis, interviews, and commentary on security in Latin America. Herein you will find rumors, the results of off the record interviews, and information you'll not find in international or United States news media.

Monday, February 23, 2009

PDVSA: Ongoing problems with contractors

Some 3,000 oil workers in the Venezuelan state of Zulia suspended their strike only once PDVSA agreed to pay their salaries. These are not PDVSA employees. They work for companies PDVSA has contracted out to perform a variety of tasks.

The fact that PDVSA will pay the workers directly, rather than settle its debts with the companies, suggests that due to cash flow problems, PDVSA can't pay off its debts with contractors.

Southern Pulse has reported - twice now - that US companies working in the region have shut down individual wells due to PDVSA's inability to make payments.

This seems to be a trend that will see PDVSA struggle as it tries to keep operations going amid a weakening oil price climate and increasing domestic turmoil over the Venezuelan economy in general.

No comments:

Powered by Southern Pulse |