Venezuela Defends Plans To Nationalize Helmerich's Idled Rigs $HP

Venezuela Defends Plans To Nationalize Helmerich's Idled Rigs By Dan Molinski, Of DOW JONES NEWSWIRES CARACAS -(Dow Jones)- Venezuela, facing criticism over its plan to nationalize 11 idled rigs owned by Helmerich & Payne Inc. (HP), said Friday the Tulsa-based company was the only one of 33 oil services companies that refused to renegotiate rates starting in early 2009, when oil prices were falling. "Despite meetings with representatives and directors of H&P for nearly a year, it wasn't possible to reach an agreement due to the inflexible position of the said company," according to a statement from state oil firm Petroleos de Venezuela, or PDVSA. Of the 32 companies that PDVSA successfully renegotiated terms with, 14 of them were local firms and 18 were foreign, PDVSA said. Venezuela's government, led by socialist President Hugo Chavez, this week announced plans take over the
Helmerich rigs, and said that as soon as it does it will start using them to pump oil. The rigs in question have been sidelined for more than a year. Helmerich turned them off because PDVSA owes it some $43 million for work the Oklahoma firm already performed. Helmerich says it wants to be paid first before turning them back on because it doesn't aim to work for free. Helmerich is also awaiting resolution of currency exchange issues with PDVSA, some which are related to the country's January devaluation of the bolivar. The U.S. State Department entered the fray Thursday, calling on Venezuela's government to compensate U.S.-based drilling companies if it decides to nationalize rigs owned by them. "We would just call on them to--if they did make such a move--to compensate the owners of those wells," said State Department spokesman Mark Toner during a press briefing. Friday's statement by PDVSA slammed the U.S. official's remarks. "PDVSA categorically rejects the statements made by spokespeople of the U.S. empire," PDVSA said. "It is trying once again to complicate relations with our partners." The statement also said PDVSA reached a deal for oil services work with U.S. energy giant Schlumberger (SLB). Chavez' government has nationalized scores of oil services firms and other areas of the oil industry in recent years as it moves to establish "oil sovereignty." -By Dan Molinski, Dow Jones Newswires; 58-414-120-5738; dan.molinski@ dowjones.com Read more: http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201006251946dowjonesdjonline000657&title=venezuela-defends-plans-to-nationalize-helmerichs-idled-rigs#ixzz0rzVzat6H