Venezuelan state oil company PDVSA has failed to make any dent in its oil spill or gas flaring woes, despite nascent promises of environmental clean-up by President Nicolas Maduro's government, according to people within the company, industry sources and an internal company document seen by Reuters.
PDVSA's failures on the environmental front underline how lack of staffing and investment stemming from Venezuela's economic crisis and U.S. sanctions is affecting not only its output and finances, but also the communities where it operates, say industry analysts and environmentalists.
It would cost more than $3 billion to repair old tubing and other equipment which leaks crude into Lake Maracaibo and to install the capture technology needed to lower flaring in Monagas, analyst Nelson Hernandez said. "With a much lower level of oil production, the share of accidents has been much higher," said ex-PDVSA director Cesar Rodriguez, who left the company in 2002.
Still available is the report for 2016, which tallies more than 8,000 spills, four times higher than the number reported in 1999. In Monagas, PDVSA vents and burns some 1.7 billion cubic feet of gas per day, according to consulting firm Gas Energy Latin America. The western Amuay refinery, in Falcon state, burns 24 million cubic feet of gas per day because units needed to capture it are shut down, a person familiar with the matter said.
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