Copyright 2002 Financial Times Information
All rights reserved
Global News Wire
Copyright 2002 Business News Americas S.A
Business News Americas
December 11, 2002
LENGTH: 415 words
HEADLINE: GOVT. DELIVERS 6MN LITERS OF PETROL TO STAVE OFF SHORTAGES
- VENEZUELA
BODY: (BNamericas.com) - Some six million liters of petrol were
distributed to service stations in and around Venezuela's capital
Caracas on Monday as the government of President Hugo Chavez fought
to prevent the onset of serious fuel shortages, local daily El
Nacional reported.
The fuel was successfully distributed despite "sabotage attempts"
from a group of managers at state oil company PDVSA, the paper cited
company president Ali Rodriguez Araque as saying.
The managers brought some refineries to a standstill and PDVSA fuel
tankers joined the strike, preventing the departure by sea of
important crude shipments to the US. "We are facing the threat of the
industry being paralyzed, but we have mechanisms to fight back and we
are doing so," Rodriguez said, adding, "the losses are very large."
If PDVSA does not fulfill its obligations, its creditors could demand
the immediate payment of up to US $ 6bn in debts. It could also
affect cash flow and the company's ability to pay workers' wages,
Rodriguez said.
As a result of this threat, credit ratings agency Moody's has put the
credit ratings of various securities linked to Venezuela's state oil
company PDVSA on review for possible downgrade (see separate story).
The ability of the government to maintain fuel supplies and prevent
the country from grinding to a halt seems now to be entering a
critical phase. Local media reported that several service stations in
Caracas closed after running out of gasoline, and there are long
queues outside those remaining open as motorists begin panic buying.
The governor of the northeastern state of Lara, Luis Reyes Reyes,
declared an energy emergency due to fuel supply problems, and in
Zulia state 70% of the petrol pumps were closed Monday, El Nacional
reported.
However, none of the refineries or service stations belonging to
PDVSA's Citgo subsidiary in the US have been affected, government
news agency Venpres said.
Some nine days into a general strike that organizers now say will be
continued indefinitely, Venezuela appears to be slowly running out of
fuel supplies - this despite having the world's largest proven oil
reserves outside the Middle East.
With neither side seemingly prepared to back down, and the divisions
and hostility more evident than ever, it is difficult to forecast
just how matters will end, or just what the long-term effects will be
on Venezuela's oil industry and society at large.
Business News Americas (BNamericas.com)
--
Yoshie
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