El Universal: Minister of Energy & Petroleum and president of state-owned oil company Petroleos de Venezuela (PDVSA) Rafael Ramirez said that the holding is engaged in negotiations so that oil contractors lower the rates they charge for services.  "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. 

"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."

In fact, in addition to this pending issue, PDVSA has to pay the debt to these companies. PDVSA's failure to honor such payments has led to labor conflicts in different oilfields.

According to Ramirez, PDVSA started to repay outstanding debts in February. He noted, however, that there is not an exact estimate of PDVSA's debt to oil contractors. "You cannot ask me to repay a debt under some contracts we do not agree with. That is the question at issue now," said the president of PDVSA.

Read more: http://english.eluniversal.com/2009/02/27/
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