PETROLEOS DE VENEZUELA CANNOT PAY ITS DEBTS!!

"Don't pay these guys, Rafaél.... Send the money to Cristina and to Evo".
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HOUSTON (Dow Jones Newswires), Apr. 29, 2009

Williams Cos. (WMB) on Wednesday issued notices of default to Petroleos de Venezuela SA (PVZ.YY) as the pipeline operator no longer expects the state-controlled company to pay outstanding bills.As a result, Williams will record a first-quarter write-down of $241 million, pushing the company into the red for the first quarter. Results are due to be released Thursday.The announcement highlights the dire situation of the Venezuelan state oil company, which has fallen behind on payments to firms operating its drilling platforms as revenue has plummeted on lower oil prices and declining crude exports. As of September, the latest available figures for PdVSA's finances, the company owed about $7.9 billion to suppliers, a 39% jump from the same nine-month period the year before, but many believe the figure is now much higher.In addition to managing the South American country's oil production, the company is in charge of various social spending programs. Declining investment in oil extraction has led to a plunge in PdVSA's production levels, analysts say.

A high-level government official told Dow Jones Newswires on Tuesday that PdVSA plans to issue between $2 billion and $3 billion in debt to pay bills owed to oil service companies.

Note: This new debt has to be added to the $6 billion owed to China, the $3 billion owed to Japan, the money extracted from Citgo, from the Central Bank, to put in the bottomless barrel of PDVSA and the pockets of the red bandits.