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Venezuela

The Bolivarian Republic of Venezuela is situated on the northern coast of South America. Home to an estimated population of 29.1 million, it covers around 916,445 square kilometres which includes the Andes mountains and the Amazon Basin Rainforest. Its main export is oil. Venezuela was colonized by Spain in 1522 but continued resistance led in 1811 to it becoming the first Spanish American country to declare independence. A chequered political history followed which saw dictatorships rise and fall, as well as military coups. The current president is founder of the Revolutionary Bolivarian Movement-200, Hugo Chávez. 

NewsWorld
VENEZUELA

Venezuela seizes US-owned oil rigs

Judge orders US oil company to hand over control of two of its rigs to Venezuela's state-run producer

PUBLISHED : Saturday, 02 November, 2013, 6:05pm
UPDATED : Saturday, 02 November, 2013, 6:05pm
 

Venezuela has quietly seized control of two oil rigs owned by a unit of Houston-based Superior Energy Services after the company shut them down because the state oil monopoly was months behind on payments.

The seizure took place on Thursday after a judge in the state of Anzoategui, accompanied by four members of the local police and national guard, entered a Superior depot and ordered it to hand over control of two specialised rigs to an affiliate of PDVSA, the state-owned oil producer.

PDVSA justified the equipment’s expropriation, calling it essential to the South American nation’s development and welfare, according to a court order. Company workers were instructed to load the rigs, known as snubbing units and used to repair damaged casings, onto trucks to be deployed at “critical wells” elsewhere, according to the document.

“It was like a thief breaking into your house, asking for the keys to the safe and then expecting you to help carry it away,” Jesus Centeno, local operations manager for Superior in the city of Anaco, said by phone. “Their argument was that we were practically sabotaging national production.”

While the late president Hugo Chavez liked to grandstand on national television, ordering troops to seize everything from supermarkets to foreign-owned oil companies, his hand-picked successor, Nicolas Maduro, has avoided any additional expropriations six months into his rule.

Instead, even while attacking the country’s business elite for allegedly hoarding toilet paper and other basic goods as part of an “economic war,” he’s insisted Venezuela is open for investment and is seeking to boost production of oil that accounts for 95 per cent of exports.

Neither Maduro nor any government official has publicly commented on the seizure of the US-owned rigs. A spokesman for PDVSA in Caracas declined to comment, saying he was unaware of the case.

Oil companies are weary of working with PDVSA, which has accumulated huge debts to service contractors on whom it depends to develop the world’s largest proven oil reserves.

Centeno said Superior stopped servicing PDVSA in July after negotiations broke down over millions of dollars in unpaid bills stretching back to December. Removal of the equipment will take a few days, so Superior is also feeding and sheltering the police officers and PDVSA crew on site, he said.

Superior is a publicly-traded oil services company with more than 14,000 employees worldwide and US$4.5 billion in annual revenue.

Greg Rosenstein, a spokesman for Superior, did not return an email seeking comment.

 

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