PDVSA to Seek Seizure of 11 Helmerich Oil Rigs in Pay Dispute

[naaman fletcher]

Petroleos de Venezuela SA, the state oil company, is seeking the nationalization of 11 oil drilling rigs owned by Helmerich & Payne Inc., which it accuses of trying to slow oil production in the South American country.
...

Helmerich & Payne idled its drilling rigs last year after PDVSA fell behind with payments to service suppliers amid a drop in oil output and revenue. Ramirez, who said in January that debts to suppliers had “vanished,” has overseen the nationalization of ventures with Exxon Mobil Corp. and ConocoPhillips and the seizure of assets from more than 60 services companies last year.

Helmerich Executive Vice President John Lindsay said the company would keep the rigs idled until overdue debts were paid and accumulated bolivars were converted into U.S. dollars abroad.

“While we will continue to pursue future drilling opportunities in Venezuela for these 11 conventional rigs, we do not expect to return to work in Venezuela until additional progress is made on pending receivable collections and on conversion of local currency to U.S. dollars,” Lindsay said during a conference call on April 29.


http://www.businessweek.com/news/2010-06-23/pdvsa-to-seek-seizure-of-11-helmerich-oil-rigs-in-pay-dispute.html

Apparently PDVSA expects H&P to work for free, and if they don't PDVSA will seize H&P's assets.

[Braulio]

1. Bad News for Venezuela

Nobody in their right mind will send equipment to a country where the government nationalizes this way. Their oil industry is going to be toast. I think Venezuelans are going to be starving in a few years. If you guys are in there, better get out.