Ensco: Venezuela contract nixed
Ensco nixes Venezuela contract
US Offshore drilling contractor Ensco International has ended its contract for a jack-up drilling rig with Petrosucre, after the unit of Venezuelan state oil company PDVSA had failed to pay past dues.
Ensco said its net receivable from Petrosucre is $16.9 million and added its second quarter results would be down by 15 cents a share as a result of the same.
The company filed a termination notice with Petrosucre on 11 May after negotiations proved unfruitful, said a Reuters report.
"The notice period has ended and the contract between Ensco and Petrosucre is now terminated," Ensco said in a statement today, adding it removed all its remaining employees from the rig.
Ensco said it will take legal action against Petrosucre for damages to the rig, which has not yet been returned and continues to be operated by Petrosucre.
In January, Ensco suspended its drilling operations after Petrosucre failed to pay past-due invoices.
In response, Petrosucre seized the rig and restarted drilling with its own employees.