Monday, March 18, 2013

Schlumberger to Reduce Venezuela Work on Unpaid Bills

Schlumberger Ltd. (SLB), the world’s largest oil-services company, is reducing work in Venezuela because of trouble getting paid by state-owned Petroleos de Venezuela SA.

“We are temporarily reducing activity due to our previously highlighted collection issues,” Chief Executive Officer Paal Kibsgaard said at the Howard Weil Energy Conference in New Orleans today. “We have decided to only recognize revenue in line with our collections in the first quarter.”

Kibsgaard said in January that there was a “significant slowdown in the rates of payment” during the Houston-based company’s fourth quarter. PDVSA may owe Schlumberger $565 million to $1.14 billion, said Kurt Hallead, an Austin, Texas-based analyst for RBC Capital Markets.
PDVSA, based in Caracas, didn’t immediately respond to a phone call and e-mail seeking comment.

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