No deal: Ensco International set to cancel deal with Venezuela
Ensco to cancel contract with Venezuela
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 personnel.
PDVSA faces growing complaints from contractors and service companies of unpaid bills amid a tumble in oil prices.
That slide has pinched the finances of the state oil company, which also bankrolls President Hugo Chavez's social programmes