Agreements at the Orinoco Oil Belt hampered by late payment

[naaman fletcher]

The attempt by state-run oil holding Petróleos de Venezuela to speed up operations at the Orinoco Oil Belt in order to hit the target of early output set by 2012 is not being fully accomplished.

While Pdvsa authorized an "emergency" in the operations at the Orinoco Oil Belt in order to press the accelerator in contracting, bidding with service providers are not running smoothly.

The emergency measure, which has not been official acknowledged by Pdvsa, has helped solve several administrative and bureaucratic steps. However, it has failed to bolster the projects due to Pdvsa's failure to pay service providers, oil sector sources noted.

Late payment to service providers end damaging their cash flow, because, in the practice they provisionally finance Pdvsa core activities.

http://english.eluniversal.com/2011/07/26/agreements-at-the-orinoco-oil-belt-hampered-by-late-payment.shtml

Largest reserves in the world and they can't make payments on time? For the people?