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UPDATE 2-Venezuela says not to seize all oil services

Tue Jun 9, 2009 4:35pm EDT

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* Venezuela says will not nationalize all oil services

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* Oil minister says OPEC should not talk about output rise

* Looking for $1.5 billion financing for refinery works (Adds debts, oil exports)

By Enrique Andres Pretel

CARACAS, June 9 (Reuters) - Venezuela will not nationalize all the oil service companies present in the country, Oil Minister Rafael Ramirez said on Tuesday, adding that gas and water injection units seized last month were "monopolistic."

Venezuela's state oil company PDVSA has run up large debts with service companies including Halliburton Co (HAL.N) and Schlumberger Ltd (SLB.N) and is trying to renegotiate tariffs with them.

Last month President Hugo Chavez ordered the takeover of a large gas injection project owned by Williams Companies Inc (WMB.N) along with a smaller water injection operation, both used to enhance output from oil fields.

"Here the big question is ... are we going absorb all the oil service activities? I want to clarify that, it's not like that," Ramirez said in a news conference about PDVSA's 2008 financial results. [ID:nN07352907]

Ramirez said the company had paid of $2 billion in debts to its service providers, of more than $7 billion it owed at the end of 2008. A preliminary report given by PDVSA to the national assembly earlier in the year had put the debt at almost double that.

Ramirez also said the company had paid out $400 million in dividends to minority partners, of a total $2 billion owed. Venezuela has several joint ventures with companies that include France's Total SA (TOTF.PA) and BP (BP.L) (BP.N).

The report, posted this week on the PDVSA website, shows a doubling in exports to Asia of oil and products, to 422,000 barrels per day, from 199 barrels per day.

Exports to North America, mainly to the United States, fell to 1.5 million bpd from 1.7 million bpd in 2007.

OPEC

He said the Organization of the Petroleum Exporting Countries should not even talk about raising oil output, adding that global inventory levels were "worrying."

"I don't believe OPEC is talking about raising production, and neither should we talk about that," Ramirez said.

He also said Venezuela was looking for $1.5 billion in financing for work at its El Palito and Puerto La Cruz refineries.

Venezuela's refineries have been plagued by accidents and delayed work over the last year. The catalytic cracker at the El Palito refinery missed a May restart date after several months of maintenance and expansion works. (Reporting by Enrique Andres Pretel and Antonio de la Jara; Writing by Frank Jack Daniel; Editing by Lisa Shumaker)



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