No return: Ensco sees 'remote' chance of Venezuela rig returned
Ensco sees no chance of rig return
US contract oil and gas driller Ensco International, described the likely return of a rig seized in Venezuela as "remote" and said it filed a claim with its insurance company as it wrote down the value of the rig.
Venezuela seized Ensco 69 in January in a dispute over payment for services, adding Ensco to the ranks of drillers that state oil company PDVSA has refused to pay.
Ensco said it took an $18.1 million charge to account for the rig's book value and other assets, on top of a previous charge of 15 cents per share for the abandoned contract.
It said the overall second-quarter impact would now be 26 cents per share, a Reuters report said.
Shares of Ensco fell to $37.50 in extended trade, after rising nearly 6% to close at $38.04 today.
"An insurance claim has been filed under Ensco's package policy, which includes coverage for certain political risks. The claim process is in the early stages," Ensco said.
Petrosucre, a unit of PDVSA, continues to operate Ensco 69, Ensco said it is evaluating legal remedies.
In May, after Venezuelan President Hugo Chavez sent troops to seize oil services companies and tighten his grip on the industry, US rig contractor Helmerich & Payne has said it was still in talks about nearly $100 million owed it by heavily indebted PDVSA.
H&P has idled most of its 11 rigs working in the country as a result of that dispute.