Oil production predicted to slow as PDVSA announces losses

Barclays Plc estimates that Venezuela’s oil production will decrease by about 11 per cent by the end of the year, in large because of failure to pay international oil services companies. One such contractor which has cut back its Venezuela operations, Schlumberger, says that the state-run oil company PDVSA owed $1.2 billion as of 31 March. However, the PDVSA signs financing agreements with services firms Halliburton and Weatherford, following chronic payment difficulties. 

Nonetheless, PDVSA also announces that its oil revenues plummeted 40.7 percent in 2015 due to sinking global oil prices. PDVSA earned $72.2 billion in revenues last year, a sharp drop from 2014's $121.9 billion. Meanwhile, writing in Forbes, Robert Rappier suggests that Venezuela’s oil reserves have been over-estimated.