The world's largest oilfield services provider,
) has made some progress with its collection of past dues from
the Venezuelan state-run oil holding Petróleos de Venezuela SA
("PDVSA"). The company announced this after a recent meeting with
PDVSA. The amount of dues to be cleared was not disclosed, but
Schlumberger now would be able to recognize all revenues
associated with its first quarter 2013 operations. This
development is welcome news for Schlumberger which experienced a
choppy fourth quarter in 2012 due to transitory issues in the
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The doldrums are continuing since the 2008 financial crisis when
the cash strapped PDVSA delayed payments to oil-service providers
operating in the country. The state run Venezuelan oil
giant, which is yet to release its 2012 financial results, had
however hinted in its website that its total debt rose 15% year
over year to $40 billion last year.
Recently, on Mar 22, Venezuela's oil minister Rafael Ramirez told
reporters that the state owned company owed a total of $16.5
billion to oil service providers like Schlumberger,
Baker Hughes Inc.
However, the managing bodies of oil-service providers like Chief
Executive Paal Kibsgaards of Schlumberger recently hinted at a
temporary cut back in the activity of developing Venezuelan
assets. This is likely to have resolved the situation for service
providers to some extent, as the country's revenues are heavily
dependent on oil production.
Schlumberger is one of the world's leading suppliers of
technology, integrated project management and information
solutions to customers working in the oil and gas industry
worldwide. Employing more than 118,000 people representing over
140 nationalities and working in approximately 85 countries,
Schlumberger provides the industry's widest range of products and
services from exploration through production.
Schlumberger shares currently retain a Zacks Rank #3, which
translates into a short-term Hold rating.