Venezuela’s state oil firm said Monday it will share products with cement firm Cemex de Venezuela, which the Venezuelan government recently nationalized, so both companies can cut costs.
Eulogio Del Pino, head of exploration and production at Petroleos de Venezuela, or PdVSA, said the oil company will see immediate financial benefits from the alliance, in the form of cheaper cement.
"All the cement used, especially in building oil wells, has required intermediary contract companies that sold it at premiums of up to 60%," Del Pino said in a statement. "We’re eliminating the middle man."
He said the plan would also benefit the nationalized Cemex, as it will be supplied with oil-based products it needs such as lubricants, oils and natural gas.
The move is seen as PdVSA’s latest effort to reduce its overhead amid lower global oil prices that have put a strain on its finances.