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Chavez sees $75 billion in oil revenue in 2008

* Venezuela is world’s 5th largest oil exporter; has largest energy reserves in the Americas

CARACAS: Top South American oil exporter Venezuela will earn $75 billion in oil revenue in 2008, President Hugo Chavez has predicted as oil prices surge to record levels.

“Oil revenues (of Venezuela) should reach $75 billion this year, about twice our external debt,” Chavez said in a speech announcing new measures aimed at stimulating the economy.

Chavez made the estimate shortly after indicating that the price of crude oil should be nearer the ‘fair price’ of $100 a barrel instead of the latest global market rate, which on Wednesday topped $136 a barrel.

Venezuela is the world’s fifth largest oil exporter and has the largest energy reserves in the Americas. Skyrocketing world oil prices have enabled Chavez’s government to reap a windfall from the exports. The oil revenues comprise 90 percent of the country’s total exports and are equal to about half the federal budget. Officials say 2.8 million barrels are exported daily — about half of that to the United States — and it has 130 billion barrels in proven reserves.

Chavez also announced his government planned to invest 554.1 billion bolivars ($257.7 billion) over several years in 90 major projects in the fields of oil exploration, production, refining, trade and supply — what he called the largest investments in Venezuelan history.

“We have 55 major projects in the oil sector that will be completed between 2008 and 2013, representing total investment of 175 billion bolivars ($81.4 billion,” Chavez said in a message broadcast on national radio and television.

Another 35 projects worth $176.3 billion were due for completion after 2013, he said. The lion’s share of the investments were reserved for development of Venezuela’s oil-rich Orinoco belt where many state and international oil firms operate, Chavez said. afp

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