PDVSA Contributes US$22.3bn to State Coffers in 2005

Venezuela's state oil company PDVSA contributed US$22.3bn to the treasury in 2005, almost doubling its 2004 contribution of US$12bn, energy and oil minister and company president Rafael Ramirez told reporters.

The 2004 contribution was made up of 16.8tn bolivares in royalties, 3.68tn bolivares in income tax and 2.5tn bolivares in dividends.

Ramirez said his company had paid US$13bn in royalties, US$8bn in income tax and US$1.3bn in dividends to the company's sole shareholder, the Venezuelan government.

The company also contributed US$6.3bn to social projects in 2004 and 2005, including the Fondespa and Fondem development funds, which finance investments in the state electricity sector, among other infrastructure projects.

In 2005, PDVSA received an average price of US$45.39 a barrel for its crude, much higher than the US$23/b estimated in its budget. PDVSA received an average price of US$33/b of crude in 2004.

Ramirez also said that the rules for saving "windfall" oil revenue in 2006 had been defined.

"Once royalties and income tax are paid, whatever is above the budget will be deposited in Fondem," he said, estimating that about US$100mn a week could be placed in the fund.

Despite the huge differential between the budgeted price and the actual price in 2005, PDVSA reported no windfall revenue.

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