Venezuela's PDVSA seeks more time to pay back govt

CARACAS, July 13 (Reuters) - Venezuela's state-run oil company, PDVSA, is seeking more time to pay $4.4 billion in government debt, at the same time it is seeking to restructure its obligations to service companies.

Company reports show that PDVSA signed five Treasury notes last year at a rate of 1.96 percent, due for repayment starting in July at a rate of $880 million per month.

Lower energy prices due to the global economic slump have hit PDVSA, South America's largest crude exporter, hard. The economic backbone of President Hugo Chavez's plan to build a socialist society in the OPEC nation, the company makes large contributions to social programs.

But last year PDVSA needed about $5 billion in state assistance, according to its official records.

The company also had some $7.5 billion in debts to contractors ranging from oil field drillers to small transport companies at the end of 2008, although it has now paid down about $2 billion, according to the company's accounts.

It is now seeking to negotiate a large reduction in the amounts due.

This month, PDVSA launched a $3 billion 2011 bond to help pay off its debts to service providers. The zero-coupon bond is expected to raise about $5.5 billion for the company. (Reporting by Marianna Parraga, writing by Patricia Zengerle, editing by Frank Jack Daniel and Leslie Adler)