Done drilling: H&P idles a fourth rig in Venezuela.
H&P idles another Venezuela rig
Helmerich & Payne has idled four rigs in Venezuela so far due to a payment dispute and expects all 11 there to be idled by this summer, the US driller's chief executive told an investor conference today.
Hans Helmerich, who had said last month that three Venezuelan rigs had been idled, repeated that his company would keep shutting down rigs as long as a dispute over nearly $100 million owed by state-run PDVSA, continued.
PDVSA has amassed huge debts and sources have said it is skipping payments to partners and service providers as weaker oil prices and heavy government social spending have sapped its finances.
As for Helmerich & Payne overall, Reuters quoted Helmerich as telling the Howard Weil Energy Conference in New Orleans that the number of terminations of newbuild rigs had risen to 31 from 28 at the end of February as clients find they cannot cover operating costs with US natural gas prices so weak.
While Helmerich & Payne is fully compensated for the life of the contracts, Helmerich said the company would rather have the rigs working.