Beleaguered PDVSA sets 50% cost-cutting target

Beleaguered PDVSA sets 50% cost-cutting target

Venezuela’s state oil firm PDVSA has launched an austerity drive aimed at cutting costs and expenses by half, according to Bloomberg.

In a memo to employees on Thursday PDVSA called on different business units, subsidiaries, joint ventures and staff to achieve a long list of money-saving reforms without hurting its output of crude oil.

Among the belt-tightening practices proposed are reductions in the use of electricity, water, mobile telephones, computing gear and publicity materials.

Training activities, international travel, use of company aircraft and company credit cards are all to be curtailed. And video conferencing is recommended instead of face-to-face meetings.

PDVSA, properly named Petroleos de Venezuela SA, has been the fulcrum of the Venezuelan economy throughout the oil boom years as it controls the world’s biggest hydrocarbon reserves, many of them offshore.

But in latter times it has been struggling, along with the national economy, as the price of oil dropped and allegations of corruption and mismanagement multiplied.

Earlier this month it was revealed that PDVSA has defaulted on billions of dollars of bonds.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.

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