Economy
The behavior of oil prices shows that cash-flow restrictions in the industry are getting worse.

A report prepared by think-tank Ecoanalítica noted that in the current conditions, state-run oil holding Petróleos de Venezuela (Pdvsa) will not be able to attain three fundamental goals: increase the output level in furtherance of the oil sowing plan; provide the surplus for fiscal management and continue giving input to the country's social development.

The firm noted that if oil prices average USD 48, Pdvsa revenues would stand at USD 49.1 billion, that is, 35 percent below the estimated budget of approximately USD 71 million that was released by the state-run company in the Official Gazette. Expenses are calculated at USD 61.1 billion, resulting in a financial deficit of USD 11.9 billion.

Ending the last week of May, the Venezuelan oil basket stood at USD 56.10, for USD 43.41 on average in 2009.

Such expenses already show a cut in the provision of "third-party expenses," including the contribution to the Treasury and the National Development Fond (Fonden). Thus far this year, the oil industry has not made any contributions to the special facility.

The Ecoanalítica survey, which takes into account the Pdvsa report and budget, found that the debt to suppliers ending 2008 totaled USD 13.8 billion. This partly explains the reasons for expropriation of some service providers. According to the survey, Pdvsa also owes the state USD 1.5 billion for income tax.

In 2007-2008, Pdvsa's accounts receivable rose by 42 percent, or USD 21.9 billion. According to Ecoanalítica, 62 percent of the accounts come from Petrocaribe.

"Cash flow is among the most controversial items. The report shows that ending 2008, it was of USD 6.4 billion, below the amount of USD 6.6 billion at the end of 2007. However, this was in a context of soaring oil prices," stated the survey.

Translated by Conchita Delgado

Mayela Armas
EL UNIVERSAL