Fewer spinning bits: Venezuela drilling at a five-year low.
Venezuela drilling bogs down
Venezuela oil drilling slowed to a five-year low in June after state-run PDVSA deferred payments to service companies, spurring rig shutdowns.
Oil rig use fell to 58 from 53 in the previous month, while natural-gas drillers kept using three rigs, according to figures released today by US oilfield service company Baker Hughes.
The combined total is the lowest since October 2004.
PDVSA had planned to increase drilling this year to boost its spare capacity, Eulogio del Pino, the company’s vice president of exploration and production, said 26 November. Instead, drillers are shutting down because of bills that have gone unpaid for as long as a year.
US driller Helmerich & Payne said last month that eight of its 11 rigs in Venezuela weren’t in use because of unpaid bills. Fellow US driller Ensco International ended a contract for a rig over bills.
Local media reported on 22 June that US driller Ensign Energy Services idled five rigs last month.
Workers at rigs owned by state-run China National Petroleum Corporation were on strike on 2 June over late pay.
Ensign didn’t respond to five calls for comment from Reuters. Officials in the CNPC office in Caracas declined to comment to Reuters.
PDVSA fell behind on bills when oil prices dropped more than $100 a barrel after a record of $147.27 a barrel last year.
While some companies have received payments in recent months, outstanding bills of at least $5 billion remained as of a month ago, said Rafael Ramirez, the company’s president.
He said all payments would be caught up by the end of this month.