Dispute: H&P idles rigs in Venezuela
H&P idles rigs in PDVSA dispute
US oil driller Helmerich & Payne said Venezuela's state oil company PDVSA owed it nearly $100 million and that it had begun to idle drilling, sending shares down 10%.
That move comes two days after Venezuela seized a rig owned by Ensco International after the US company halted operations because of unpaid bills.
So far, two of Helmerich & Payne's 11 rigs in the Opec member's oilfields have ceased operations, and that number would rise to five by the end of February as the current work contracts expire, said a Reuters report.
"Absent any improvement of receivable collections, the remaining rigs would probably become idle by the end of July this year," Helmerich said in its quarterly earnings release.
Still, Helmerich executives told analysts on a conference call that they hoped to resolve the issue and return to normal operations in Venezuela, and that there had been no discussions with PDVSA about seizing idle rigs.
Earlier this week, PDVSA said Ensco had violated its contract by halting drilling at the offshore Petrosucre oil project.
It took over and began operating the rig, under the supervision of the company.
PDVSA has amassed nearly $8 billion in debts with providers, and sources have said it had begun skipping payments to partners and service companies in recent months as declines in crude oil prices and heavy social spending sapped its finances.
On Tuesday, PDVSA seized a rig owned by Ensco and began operating it under the supervision of Ensco employees.
Ensco said it was owed $36 million by PDVSA subsidiary Petrosucre, a joint venture between PDVSA and Italy's Eni.
Helmerich also said on net profit for the fiscal first quarter rose to $145 million, or $1.36 per share, from $107.8 million, or $1.02 per share, a year ago.
Shares of Helmerich were down 9.8% at $22.40 on the New York Stock Exchange on this afternoon, off an earlier low at $21.38.