PdVSA has stated that it will invest $26 billion in expanding hydrocarbon reserves and production between 2004-2009, with the goal of increasing national Oil production to 5 million bbl/d by 2009. In August 2005, PdVSA announced that it would increase national oil production to 5.84 million bbl/d by 2012. Industry analysts estimate that PdVSA must spend some $3 billion each year just to maintain production levels at existing fields, as many of these fields suffer annual decline rates of 25 percent. PdVSA announced a $5 billion capital investment plan for 2004, with the company announcing that it had spent 75 percent of that amount by November. However, independent oil analysts speculated that total spending was closer to 20 percent of the annual budget, with oil services firms and observed rig activity in the country seeming to support this lower figure. Affecting PdVSAs ability to meet its investment goals are the increasing demands placed upon its finances by the Venezuelan government. In 2004, the Venezuelan government established a special development fund to finance infrastructure projects throughout the country; PdVSA will supply $2 billion a year directly to this fund, bypassing the Venezuelan Central Bank. Further, government plans have the company spending an additional $2-3 billion per year on social programs. In addition, PdVSA already pays billons of dollars each year to the Venezuelan government in the form of income taxes, royalties, and dividends. Finally, because of the aforementioned international agreements between Venezuela and its neighbors, PdVSA is selling significant amounts of oil below market value, further eroding its available cash flow. It is unclear how the company will be able to afford its ambitious investment plans, though PdVSA officials have mentioned that the company might increase its international borrowing.