By Matthew Walter and Daniel Cancel May 9 (Bloomberg) -- Venezuelan President Hugo Chavez ’sseizure of assets at 60 oilfield service companies threatens toreduce the OPEC-member country’s output.
Reeling from a 60 percent plunge in oil prices since July,Venezuela stopped paying some of its service providers lastyear, prompting many to idle drilling rigs. The seizures maydiscourage bidders as Petroleos de Venezuela SA, known as PDVSA,prepares to auction rights this year for the so-called Caraboboblocks, Venezuela’s biggest offer of oil reserves on record. Williams Cos. that providedservices such as water and gas compression and shuttles foroffshore oil workers. Chavez alleged the targeted companies wereovercharging PDVSA and exploiting employees.
Full Story: Chavez's Oil Seizures May Cause 'Substantial' Output Decline - Bloomberg
Reeling from a 60 percent plunge in oil prices since July,Venezuela stopped paying some of its service providers lastyear, prompting many to idle drilling rigs. The seizures maydiscourage bidders as Petroleos de Venezuela SA, known as PDVSA,prepares to auction rights this year for the so-called Caraboboblocks, Venezuela’s biggest offer of oil reserves on record. Williams Cos. that providedservices such as water and gas compression and shuttles foroffshore oil workers. Chavez alleged the targeted companies wereovercharging PDVSA and exploiting employees.
Full Story: Chavez's Oil Seizures May Cause 'Substantial' Output Decline - Bloomberg
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