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Venezuela idles its drill bits

The last cut in oil production undertaken by Venezuela, in accordance with an agreement from Opec, has made 17 drill rigs in west and east Venezuela to come to a standstill, reported oil-sector labour agents.

Based on the news given by trade union leader Froilan Barrios, only in Boscan field, western Zulia state, a total of 14 rigs have shut down since the last week of December.

Three rigs operating in eastern Anzoategui state also idled. A report published by El Univerisal newspaper added that Barrios fears that new, similar measures will be put in place in the region.

From September to December of last year, Venezuela curtailed its output by 364,000 barrels per day as a result of the cuts agreed by Opec member states.

The trade union leader added that the order to curb production in line with the oil cut is not the only reason to stop drilling, but also managerial instructions regarding business planning.

The move has resulted in at least 5000 lay-offs from contractors.

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