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To: A. Geiche who wrote (36262)	1/29/1999 5:15:00 PM
From: Platter	Respond to of 95453

MEXICO CITY, Jan 29 (Reuters) - Mexico's Energy Ministry had no comment on Friday on plans by Venezuela's new energy minister to seek agreements with other oil producers to halt the slide in world prices, a spokeswoman said. The spokeswoman added there were no plans "for now" for Mexican Energy Minister Luis Tellez to meet Venezuela's Minister of Energy and Mines-designate Ali Rodriguez ahead of a March 23 gathering of the Organization of Petroleum Exporting Countries (OPEC). Mexico is not a member of OPEC, but together with Venezuela and Saudi Arabia, last year crafted a series of agreements to draw around 3.1 million barrels per day from world oil supply. The measure failed to relieve a glutted market and oil prices remain in the doldrums. Rodriguez said on Friday he would seek agreement with other producer nations, both within OPEC and outside it, ahead of the March 23 meeting on "mechanisms" to shore up oil prices. Rodriguez said there was about 1.5 million barrels per day of oversupply in world markets.

To: A. Geiche who wrote (36262)	1/29/1999 5:18:00 PM
From: Platter	Respond to of 95453

Coming Fast and Furious.."CARACAS, Jan 29 (Reuters) - Venezuela's incoming Minister of Energy and Mines Ali Rodriguez said he would seek new measures to halt the slide in oil prices and try to keep the sector afloat by issuing more debt. But he did not say whether he supported additional cuts in oil production, which he said would have to be studied by the Organization of Petroleum Exporting Countries (OPEC). "We are going to work energetically in the search for mechanisms within OPEC and with non-members to stop the slide in oil prices," he told journalists outside the residence of President-elect Hugo Chavez. Venezuela last year worked with fellow OPEC member Saudi Arabia and non-OPEC producer Mexico to mastermind a series of world oil production cuts that failed to stop prices from falling to their lowest level in over a decade. Venezuelan oil prices fell below $9 a barrel and are still there, as part of the global plunge in crude prices. These are the lowest nominal prices in 12 years. And after adjustment for inflation, the prices are at 25-year lows. The outgoing Caldera administration first agreed to drastic cuts in its own output and then failed to implement them fully, which was often cited by other producers as an obstacle to further action. Chavez has promised to implement the existing agreements' production cuts in full. But Rodriguez said it was not possible to do this immediately and he did not give a deadline for full compliance. Rodriguez said he would be holding intense discussions with other producers so that new steps could be agreed before the next OPEC meeting on March 23. "The first objective is, obviously, to stop the fall in prices. If that means new cuts, then we should study the impacts these would have in each country," he said, adding that he wanted to study tax systems of OPEC members to ensure they did not compete with each other. Rodriguez, who has been a persistent critic of the way the Venezuelan oil industry was opened to the private sector, reiterated that he would comply strictly with the terms of the contracts already signed. But he said he wanted to redesign the liberalization to allow pension funds and workers' savings to invest in the industry. He said over-optimistic price forecasts had forced cuts in investment and that state oil company Petroleos de Venezuela (PDVSA) will have to borrow another $3.6 billion in 1999 to cover its costs. In its Dec 2 annual meeting, the government authorized PDVSA to issue $1 billion in new debt in 1999, of which about $800 million would go toward amortizing existing debt. Rodriguez did not specify where the extra money would go, but some or all could be used to pay a dividend to the government that PDVSA executives have hinted could be as high as $4 billion."