• 8 minutes U.S. Shale Oil Debt: Deep the Denial
  • 13 minutes WTI @ $75.75, headed for $64 - 67
  • 16 minutes Trump vs. MbS
  • 5 hours Knoema: Crude Oil Price Forecast: 2018, 2019 and Long Term to 2030
  • 5 hours Nuclear Pact/Cold War: Moscow Wants U.S. To Explain Planned Exit From Arms Treaty
  • 5 hours Why I Think Natural Gas is the Logical Future of Energy
  • 6 hours Merkel Aims To Ward Off Diesel Car Ban In Germany
  • 4 hours A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 15 hours Get on Those Bicycles to Save the World
  • 2 hours Iraq war and Possible Lies
  • 2 days The Dirt on Clean Electric Cars
  • 22 hours Satellite Moons to Replace Streetlamps?!
  • 21 hours Can “Renewables” Dent the World’s need for Electricity?
  • 1 day Owning stocks long-term low risk?
  • 15 hours Can the World Survive without Saudi Oil?
  • 1 day Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
The Implications Of A Fractured U.S., Saudi Alliance

The Implications Of A Fractured U.S., Saudi Alliance

With tensions between the United…

Oil Price Rally Revives Offshore Oil Sector

Oil Price Rally Revives Offshore Oil Sector

The offshore sector was one…

Low Oil Prices Prompt Halliburton to Trim Operations in Venezuela

Venezuela Oil Rig

Halliburton will join other oilfield service providers is trimming down operations in Venezuela amid depressed oil prices and rising costs, along with the difficulty of getting payment on receivables.

"During the first quarter of 2016, we made the decision to begin curtailing activity in Venezuela. We have experienced delays in collecting payment on our receivables from a primary customer in Venezuela. These receivables are not disputed, and we have not historically had material write-offs relating to this customer," Halliburton noted in a filing with the U.S. Securities Exchange Commission (SEC).

Halliburton, which is the second-largest oil services provider in the world, has recently struggled to collect payments from its debtors. The company’s receivables in Venezuela had risen to US$756 million, indicating an increase of 7.4 percent. Its Venezuelan receivables constitute 10 percent of the overall figure and are the highest for any country.

Related: ISIS Working On Driverless Car Causes More Worry Than Necessary

The decision follows a similar move by the largest oilfield services company in the world--Schlumberger, which has also announced a cut back in activity in Venezuela after failing to collect targeted proceeds from state-owned Petroleos de Venezuela.

Schlumberger explained the core cause was insufficient payment received by the company in the past few quarters and the Venezuelans’ failure to formulate a mechanism that could address the concerns of Schlumberger’s receivables. Petroleos de Venezuela has denied these allegations.

In its operational guidance, Halliburton reported that its Latin American revenue for the first quarter came in at US$541 million, declining 22 percent. The decline was primarily driven by reduced activity in Colombia, Brazil, and Mexico.

Related: Can Iran And Saudi Arabia’s Production Claims Be Believed?

Other oilfield companies, including Weatherford International Plc, have also complained of delayed payment from Venezuela.

Venezuela recently moved to implement electricity rationing to deal with severe power shortages resulting from a prolonged drought, but other drastic measures are also being taken to deal with the energy crisis that is unfolding both as a result of low oil prices and urgently needed economic reform.

By James Burgess of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News