AP
Gaston Parra

Workers at Venezuela's state oil company, Petroleos de Venezuela, are protesting President Hugo Chavez's appointment of the company's new board of directors, claiming it reflects the increasing politicization of the company.

Employees say the move serves the interests of Venezuela's President rather than those of the country's 24 million people.

The workers believe newly-appointed oil chief Gaston Parra does not have the right professional and managerial experience to do the job, and claim the appointment was based on politics rather than merit.

Mr Parra is an economist and a former Central Bank Vice President. He replaced retired Army General Guaicaipuro Lameda, who was dismissed after criticizing a new oil law implemented by President Chavez that limits private participation in oil projects and increases the fees the company must pay to the government.

The protests come at a difficult time for the Venezuelan president, who faces increasing opposition from most social sectors, including some in the military, on top of severe economic problems. Disruptions in the operations of the oil company could worsen the situation further, as the company is the government's largest source of income.

Some information for this report provided by AP and Bloomberg.

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