Top-Manager of PDVSA: because of low oil prices 250 thousand oil workers can remain without work

Top-Manager of PDVSA: because of low oil prices 250 thousand oil workers can remain without work

LONDON, 9 February. Due to the low oil prices of about 250 thousand oil workers around the world can remain without work. This was at the International Petroleum Week forum reported to the Director of strategy Venezuelan PDVSA Sergio Antonio Tovar.

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“Low prices lead to reduced capital expenditures and layoffs. 250 thousand, if not more, out of work in our industry”, he said, stressing that the period of low prices will not last for long and will end soon after the restoration of the balance of supply and demand of oil.

According to him, PDVSA now has some difficulties with the staff: “with regard to labor and personnel, the difficulties are available. We are very often faced with the strikes, strikes,” he said, adding that the company also seeks to retain highly qualified personnel.

Earlier it was reported that oil and gas company Royal Dutch Shell will cut 10 thousand jobs amid a sharp fall in world oil prices. Prior to this, plans massive layoffs announced another major oil company – BP. On 2 February the company reported a loss of $2.2 billion for the fourth quarter of 2015 and plans to dismiss 7 thousand employees.

$45-50 per barrel

The Item also noted that the Venezuelan state oil company PDVSA expects that the price of oil in the 2nd half of 2016 will rise to $45-50 per barrel.

“I hope that in the second half of this year will be a recovery in prices. The first step should be $45-$50 dollars per barrel”, – he said.

Earlier it was reported that Venezuelan authorities intend to collect an emergency meeting of members of the Organization of countries – exporters of oil (OPEC) and non it, to achieve the equilibrium price of oil at $60 per barrel.

The decline in oil production

The item noted that the Venezuelan oil company PDVSA does not exclude the decline in oil production in Venezuelan project to Rosneft because of low prices for the energy carrier.

“If the prices (on oil) will continue to fall, and find ourselves in a situation in which expenses higher than income, we will have to consider the possible reduction of production,” he said.

According to the Product, in the event of a further decline in oil prices, companies have to “tighten their belts”. “We have different spheres (we can do), and we will start with production in those areas where we have joint production, when our partners will agree that reducing it is one of the possibilities,” he added.

He also noted that “Rosneft” increased the share in joint with Venezuelan PDVSA company PetroMonagas to 40%.