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H&P and PDVSA still in talks

Venezuela state-run giant PDVSA and US drilling company Helmerich & Payne continued negotiations to settle PDVSA debts and to reactivate the operations of two rigs located in Monagas state, east Venezuela, which have been halted since late January.

The Tulsa, Oklahoma-based drilling company has accused PDVSA of failing to pay a $100 million debt.

As a result, H&P halted operations of its rigs, said El Universal newspaper.

The company has warned PDVSA that it will stop another unit this month and the remaining eight rigs in July.

Late yesterday, the result of the meeting between the parties was unknown.

The rigs that are off line were shut down by a group of workers to reject the lack of payment.

H&P wants to increase rates, but PDVSA is considering other options to operate the rigs, especially in the context of a global crisis that pushed oil prices down.

Meanwhile, representatives of the oil workers in the area said yesterday that the Services Management of PDVSA Oriente will meet with them for a briefing on the progress of negotiations with H&P, as reported by oil union Sinutrapetrol representative, Raul Parica.

The union leader added that the Ministry of Labor has not convened the representatives of oil union FUTPV and the executives of PDVSA to begin discussion of the 2009-2011 collective bargaining agreement.

The current agreement expired on 21 January and the oil industry had committed to begin negotiating new contract terms after 15 February, the date of the referendum on a constitutional amendment to establish endless reelection of all elected officials in Venezuela.

The oil workers have proposed a 159% increase, from a salary of $20 per day to $53 per day.

The representative of oil union Sinutrapetrol said that workers are willing to "fight until the end" to defend their labor claims.

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