State-run services: Chavez eyes creation of national oilfield support contractors.
Chavez eyes state-run service outfits
Venezuelan President Hugo Chavez says his government will create several state companies to replace oil service contractors now doing business with the country's state-run oil company.
Chavez said his administration along with state governments will create "substitute companies" and "eliminate the intermediaries" working with state-run PDVSA.
The socialist president said in a televised speech today night that he opposes having the state oil company continue to contract companies, both domestic and international, to provide services such as maintenance and operating some oil wells.
Chavez urged state governors to work with his administration to form "mixed companies" to handle such work, according to an Associated Press report.
Earlier this month, Texas-based services giant Schlumberger, announced it would form a joint venture with Venezuela to work with PDVSA.
The move comes as PDVSA and the Chavez government tries to pay a backlog of bills for service work pegged at about $1 billion.
US driller Helmerich & Payne said it has idled four of its 11 rigs working in Venezuela due to an ongoing dispute over unpaid bills.