Venezuela says will pay for nationalized H&P rigs [View All]

[cory777]

Source: Reuters

Reuters) - Venezuela will pay Helmerich and Payne for a fleet of oil rigs it seized from the U.S. company, the oil minister said on Saturday, warning that five drills at a Chevron venture were also at risk of nationalization.

Oil Minister Rafael Ramirez announced this week that OPEC member Venezuela was nationalizing 11 rigs belonging to Helmerich and Payne following a year-long dispute over pending payments by state oil company PDVSA.

"Here we pay book value," Ramirez said. "A process begins by which we establish fair price between the two parties."

Socialist President Hugo Chavez has nationalized most of Venezuela's oil industry, starting with major heavy-crude projects worth billions of dollars in 2007, then taking over dozens of smaller service companies last year.

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