Schlumberger reaffirms commitment to Venezuela despite debt concerns
Oilfield services provider Schlumberger has released a statement saying that operations in Venezuela have improved enough for it to recognise all revenue associated with its first quarter operations.
Oilfield services provider Schlumberger has released a statement saying that operations in Venezuela have improved enough for it to recognise all revenue associated with its first quarter operations.
The announcement comes two weeks after the group said it was suffering collection issues in the country and announced plans to reduce activity on a temporary basis.
The company has had problems with the PDVSA [Petrleos de Venezuela/Petrol of Venezuela], the country's state-operated oil giant, over huge debts said to total hundreds of millions of dollars.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Speaking on March 22nd, Rafael Ramirez, Venezuela's Oil Minister, revealed that last year PDVSA's debts to its service providers, including Schlumberger, had rocketed 35% above the $12bn posted the previous year.
The minister is also quoted as saying that during a "very good meeting" with the head of Schlumberger, they "clarified all of the issues".
On Tuesday, Chief Executive Officer, Paal Kibsgaard, released a statement saying: "In Venezuela, after meetings with PDVSA, the collections have improved to the point that we will recognise all revenue associated with our first-quarter operations.
"We further expect to finalise a new payment agreement with PDVSA and we anticipate ramping up activity to meet the current and future needs of PDVSA's development and production plans, thereby continuing our commitment to Venezuela."
Schlumberger's share price was unchanged at $75.23 at 10:00 on Tuesday.
MF
-
Private school fees soar and VAT threat looms – what does it mean for you?
Rising private school fees could see more than one in five parents pull their children out of their current school. Before you remortgage, move house or look to grandparents for help, here’s what you need to know.
By Katie Williams Published
-
Best and worst UK banks for online banking revealed
When it comes to keeping your money safe, not all banks are equal. We reveal the best and worst banks for online banking when it comes to protecting your money from scams
By Oojal Dhanjal Published