Venezuela to pump 12% more oil as project costs rise and credit freezes

The credit crisis is hitting home in Venezuela in South America. Days after Chavez won his beloved struggle to be able to run for re-election plans have been announced by the government that Venezuela pans to boost oil output by at least 12%.

By 2013, Venezuela aims to increase its production capacity to 4.94 million barrels a day. This will require around $4.41 billion usd for drilling, $2.2 billion usd for steam injection to increase production and $6.51 billion for equipment to facilitate converting the region's tar-like oil into a low-sulfur crude oil for export.

Back in October 30, PDVSA opened the bidding for potential partners for ventures in the Orinoco oil belt. Which by the way Chavez never forgets to mention now puts Venezuela up there with Saudi Arabia and Canada in "proven petroleum deposits."



PDVSA is currently offering a 40% stake in a joint venture with the Venezuelan state oil company to develop new projects. According to Bloomberg the contracts can extend up to 40 years.