PDVSA seeks a 40% cut from contractors

Venezuelan Minister of Energy and Petroleum and chief of state-owned oil company PDVSA Rafael Ramirez said that the holding is engaged in negotiations so that oil contractors lower the rates they charge for services by 40%.

“In most cases, we have five-year term agreements. We are reviewing the contracts because the current rates are unbearable,” Ramirez said.


The official added that, according to PDVSA estimations, the costs related to contractors must be lowered 40% by implementing new rates that are consistent with the collapse of oil prices that has seriously hit the energy market, said a report by El Universal newspaper.

“Given the present market conditions, which have changed dramatically, we need to revise the rates downward or we will not be able to contract some companies,” Ramirez warned.

He admitted that negotiations with the contractors “have been hard.”

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