Update on the Venezuelan 'nationalization' of the USA Oil Rigs
The numbers behind the story are coming out -- from
Yahoo/Associated Press:
Venezuela seizes oil rigs owned by US company
Venezuela's government has seized control of 11 oil rigs owned by U.S. driller Helmerich & Payne, which shut them down because the state oil company was behind on payments.
Oil Minister Rafael Ramirez announced that Venezuela would nationalize the Tulsa, Oklahoma-based company's rigs. He said in a statement Wednesday that Helmerich & Payne had rejected government demands to resume drilling operations for more than a year.
Helmerich & Payne announced in January 2009 that it was stopping operations on two of its drilling rigs, because Venezuela's state-run oil company, PDVSA, owed the company close to $100 million. It said it would shut down the rest of its rigs by the end of July as contracts expired unless PDVSA began to make good on its debts.
The company said Thursday that PDVSA's debt was $43 million as of June 14.
Makes sense -- Venezuela has built its house of cards on the continuing revenues from oil production and it cannot afford even the most modest slowdown. Chavez has done nothing to build infrastructure or educational facilities or manufacturing or agricultural facilities (they import 70% of their food!) -- his whole bread and circuses is built on oil money. Easier to nationalize a few oil wells than to actually have to pay what is owed to a foreign imperialist running dog.
More:
President and CEO Hans Helmerich said in a statement on Thursday the company's position has remained clear: "We simply wanted to be paid for work already performed."
"We stated repeatedly we wanted to return to work, just not for free," he said. "We are surprised by yesterday's announcement only because we have been in ongoing efforts in a good faith attempt to accommodate a win-win resolution, including a willingness to sell rigs."
The company has worked in Venezuela for 52 years, Helmerich added.
U.S. State Department spokesman Mark Toner said he hopes Helmerich & Payne is compensated and suggested the takeover and other recent nationalizations are scaring off private investment in Venezuela.
Venezuela is not only throwing away the resources of this company, they are throwing away the 52 years of expertise these people have.
As for Mark Toner's comment: "
hopes Helmerich & Payne is compensated and suggested the takeover and other recent nationalizations are scaring off private investment in Venezuela"
Talk about the department of the obvious...
Posted by DaveH at July 1, 2010 7:32 PM