Ensco to cancel contract with Venezuela

ENSCORig 75 GOMThomas

Chris Salvo

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By News wires

 11 May 2009 21:49 GMT

Ensco International, which had one of its drilling rigs seized by Venezuela in January, said it plans to cancel that contract unless it is paid or an agreement is reached by 30 May.



The Dallas company said recent talks with Petrosucre, a unit of Venezuelan state oil company PDVSA, were not fruitful so it has filed a termination notice with the company.

In January, Ensco suspended drilling operations after Petrosucre failed to pay past-due invoices.

In response, Petrosucre seized the rig and restarted drilling with its own employees, said a Reuters report.

At the time, Ensco said it was owed $35.5 million.

The company said another one of its rigs is under contract with Chevron off the coast of Venezuela and is being operated by Ensco…

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