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PDVSA may seek $20 bln in loans
Bloomberg News
CARACAS
Petroleumworld.com 05 09 06Petroleos de Venezuela SA, South America's largest oil company, may seek up to $20 billion in loans from international banks to help more than double oil production by 2012.
The company may borrow up to $3.5 billion this year, Petroleos de Venezuela Finance Director Eudomario Carruyo said in an interview today in Caracas. The company is in the midst of a $70 billion investment program that aims to increase oil output to 5.8 million barrels a day by 2012, up from its current 2.6 million barrels a day. The Caracas-based company also plans to use the funds to build refineries and develop its natural-gas reserves.
``We are evaluating offers made by international banks, banks from Japan and banks from North America,'' Carruyo said. ``Banks are very interested in financing some of the projects, such as acquiring oil tankers, or building refineries.''
Petroleos de Venezuela is seeking financing even though surging oil prices are boosting its revenue and income. The company is expected to finance up to $8 billion in government social spending this year, diverting funds from its oil and natural-gas assets.
``We are investing a ton of money,'' said Carruyo. ``Of the $70 billion in planned investments, our share will be 70 percent.''
The remainder, or 30 percent, will be funded by Petroleos de Venezuela's partners, he said.
Petroleos de Venezuela currently has debt of about $3.5 billion, Carruyo said. The company in February paid off all of its debt that was registered with the U.S. Securities and Exchange Commission to avoid having to send its annual reports to the U.S. Securities and Exchange Commission.
Surging Revenue
Petroleos de Venezuela expects revenue from all operations to top $85 billion this year, Carruyo said. The company has yet to release full results from last year.
Revenue from Venezuelan operations should reach $45 billion, he said. According to preliminary figures, Venezuelan revenue totaled $45 billion in 2005. Carruyo gave no 2006 profit estimates.
``The Venezuelan oil basket price has been averaging about $60 a barrel,'' he said. ``We expect it to end the year at between $58 and $60 a barrel.''
The oil basket is a compilation of the country's crude and petroleum products' prices. Venezuela is the world's fifth- largest oil exporter.
The company also plans soon to release its 2004 and 2005 results to the U.S. Securities and Exchange Commission. The 2004 report has been repeatedly delayed.
To contact the reporter on this story:
Peter Wilson in Caracas at pewilson@bloomberg.net.
May 8, 2006 15:34 EDT
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