(Energy Analytics Institute, Aaron Simonsky, 20.Jan.2017) – Cash-strapped PDVSA went out on a limb again last year to reduce its long-term financial debt.
PDVSA, as the Caracas-based company is known, may not have invested heavily in exploration and production activities to boost falling crude oil production or in its six ailing domestic refineries but it did somehow manage to reduce its total financial debt by $2.7 billion in 2016, the company announced in an official statement.
“This figure demonstrates the financial strength of the Venezuelan Bolivariana Republic and PDVSA, whom have honored all their obligations despite the cycle of low oil prices,” announced PDVSA.
Energy investors have continued to take a wait and see attitude regarding Venezuela’s oil and gas sectors among others in this South American country amid ongoing economic and political crises that have triggered negative economic growth, three-digit inflation, and scarcity of medicines and foodstuffs. As expected, energy sector investments and subsequently oil production in the country continues to wane.
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