Venezuela's Chavez backs oil chief despite criticism

Sun Jul 29, 2007 4:40pm EDT
 
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CARACAS (Reuters) - President Hugo Chavez endorsed his oil chief on Sunday despite repeated criticism from the opposition and some government supporters over his management of the industry, particularly over a lack of rigs.

"In the face of so many attacks against (state oil company PDVSA chief) Rafael Ramirez, I will make clear here that Rafael will be around a good while yet in PDVSA," Venezuela's president said on his weekly TV program that he hosted from the Orinoco oil belt.

"We have a tremendous colleague at the head of PDVSA and I call for support for him," Chavez added. "Carry on Rafael, you are a revolutionary."

Ramirez has been one of Chavez's closest aides in recent years, leading the president's drive to nationalize the OPEC nation's oil industry, which provides the bulk of the income that the leftist leader lavishes on the majority poor.

In recent weeks, Ramirez, who is also Venezuela's energy minister, has come under increasing pressure and there had been some local media speculation Chavez could replace him.

Ramirez said last week Venezuela needed to address an "operational emergency" that could lower national output if the state company did not quickly acquire more rigs.

Workers have protested losing jobs, the opposition and media have criticized his crisis-management and lawmakers have alleged corruption in some contract awards.

"I know what is behind (the attacks) to get me to get rid of him, because people have plans, power struggles," Chavez said without elaborating.

The president applauded Ramirez as the man who coined his main reelection campaign slogan last year. Ramirez has been fined for his overt politicization of the state company by declaring its workers were "red, really red" in what became a favorite Chavez slogan as a reference to his political colors.

Chavez dedicated his program to showing why he believes Venezuela's oil industry is stronger after a series of nationalizations this year that some industry analysts have worried would reduce output from the No. 4 U.S. supplier.

The program highlighted new PDVSA projects, including plans to build a new upgrader complex that could turn the Orinoco's tar-like crude into lighter oil and to explore as early as next month for energy resources with Cuba off the island's shores.

 

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