Latin America Business News
Venezuela’s State Oil Co. Posts 53% Drop in Earnings
Venezuela’s state oil company, Petroleos de Venezuela (PDVSA), posted a 53% decrease in its earnings due to lower crude prices, reduced production as mandated by the Organization of Petroleum Exporting Countries (OPEC) and reduced investment. The loss of $5.5billion in earnings occurred through last year.
This will be problematic for the country’s social programs since President Hugo Chavez uses state oil proceeds to fund many of the country’s social programs and represents 32% of the government’s budget. As revenue was reducing throughout 2009, PDVSA continues to hiring adding 13,200 new employees.