Venezuela to take over ops of 18 oil rigs

CARACAS – Venezuelan state oil company PDVSA will take over operations of 18 oil rigs currently run by foreign companies, the nation’s oil minister said in comments published in local media yesterday.

The Ultimas Noticias newspaper quoted Rafael Ramirez as saying the rigs were owned by the state but “in the past were handed over to the control of multinationals.” “Those companies demand (enormous) sums of money for the use of that machinery,” Ramirez said.”Given this situation, we have decided on the nationalisation of that equipment and that it will (be put) under control of the state.”He did not provide details on which companies were currently operating those rigs.A PDVSA official said he did not have any further information.Oil service companies operating in Venezuela include Baker Hughes, Schlumberger and Halliburton.The announcement follows accusations by a lawmaker that PDVSA’s vice president had violated state procurement procedures by acquiring oil rigs from a Colombian company through a no-bid contract.Ramirez later defended the transparency of this contract.But he told the local Panorama newspaper in an interview published on Sunday that the company had “started a battle to end corruption in the traditional scheme of contracting oil rigs.”Nampa-Reuters”Those companies demand (enormous) sums of money for the use of that machinery,” Ramirez said.”Given this situation, we have decided on the nationalisation of that equipment and that it will (be put) under control of the state.”He did not provide details on which companies were currently operating those rigs.A PDVSA official said he did not have any further information.Oil service companies operating in Venezuela include Baker Hughes, Schlumberger and Halliburton.The announcement follows accusations by a lawmaker that PDVSA’s vice president had violated state procurement procedures by acquiring oil rigs from a Colombian company through a no-bid contract.Ramirez later defended the transparency of this contract.But he told the local Panorama newspaper in an interview published on Sunday that the company had “started a battle to end corruption in the traditional scheme of contracting oil rigs.”Nampa-Reuters