PDVSA Defends itself with the truth

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PDVSA Defends itself with the truth
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• During the last few weeks, the Government has
  devoted its time to ruin the reputation of PDVSA,
  spreading lies and half-truths...

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PDVSA mantains the lowest operating costs among
the large enregy companies in the...
Dollars per barrel, average 1998-2000
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All this despite the fact that...

• The policies of production cuts that have been
  promoted by the Venezuelan Government within
  OPEC, have left part of PDVSAs installed
  capacity idle, without generating income but
  generating maintenance costs
• These policies of production cuts have forced
  PDVSA to buy crude abroad at market prices to
  fulfill future commitments of our refineries,
  when we are capable of producing it for only four
  dollars a barrel

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Does PDVSA have high administrative costs?
Dollars per barrel, average 1998-2001

1,2
PDVSA
4,8
Chevron-Texaco
11,2
BP-Amoco
11,4
Shell
13,8
Exxon-Mobil
Source Annual Reports, average 1998-2001
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• Then...
• Why does the Minister of Energy say that in 2002,
  the cost of production of a barrel of Venezuelan
  crude was three dollars, but that it reached 15
  dollars because of PDVSAs bureaucracy?

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• Because the Minister added as bureaucratic costs
  of PDVSA
• 7.15 dollars per barrel which were paid to the
  Government as royalties...

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Royalties!

Administrative
Administrative
Refining
Depreciation
Production Costs
Dollars per barrel , 2002
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• Why does the Minister of Energy insist in ruining
  the reputation of PDVSA trying to fool people
  with half-truths?...

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PDVSA is one of the four most productive
companies in the world as measured by earnings
per employee
Dollars, average 1998-2000
Source Annual Reports, average 1998-2000
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And that is only because of the local subsidy for
gasoline. When the subsidy is eliminated, PDVSA
is the most productive in the industry in the
world
Dollars, average 1998-2000
179,000
PDVSA
Exxon-Mobil
161,000
132,000
Shell
107,000
Chevron-Texaco
BP-Amoco
93,000
Source Annual Report, average 1998-2000
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• All of these achievements have given PDVSA
  numerous recognitions at the international
  level...

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PDVSA International Recognition

• Petroleum Intelligence Weekly 2 in the world
  ranking that groups 50 companies in the industry
  
• 1998 y 1999
• (Ranking based on operational criteria)
• Petroleum Economist 1 in the ranking for public
  companies of oil and gas
• 1998
• (Ranking based exclusively on management quality)

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The PDVSA that has been built by Venezuelans is
a pride for the nation, a window through which
Venezuela has peeked into the world Lets give
it its rightful place