By April 13, 2016 Read More →

Schlumberger suspends services in Venezuela due to insufficient payments

PDVSA maintain they are not having problems paying their bills, and labelled it manipulation by the media


LONDON- Schlumberger Limited announced today that it will reduce its activity in Venezuela after it failed to collect payments from the national oil company.

In October, Schlumberger was said to be shifting some of its workers from Brazil to Venezuela, reinforcing the contractor’s commitment while others in the industry were pulling out.

This measure is a result of insufficient payments received in recent quarters and a lack of progress in establishing new mechanisms that address past and future accounts receivable.

Schlumberger says it appreciates the efforts of its main customer in the country to find alternative payment solutions and remains fully committed to supporting the Venezuelan exploration and production industry.

However, they are unable to increase its accounts receivable balances beyond their current level.

According to Bloomberg, PDVSA maintained they are not having problems paying their bills, and labelled it manipulation by the media. Also, they will continue to make payments to the service provider in “various forms”.

The reduction in activity levels will take place over the current month and will be made in close coordination with all customers in Venezuela to continue servicing those customers with available cash flow, while allowing for a safe and orderly wind down of operations for others.

Additionally, Schlumberger reaffirms its first-quarter revenue guidance of approximately $6.5 billion.

Posted in: Energy Financial

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