Marine Link
Friday, December 2, 2016

PDVSA gets $2B Credit Line

May 21, 2014

Venezuelan state oil company PDVSA on Wednesday said it had been granted a total of $2 billion in credit lines by oilfield services companies Halliburton Co, Schlumberger NV and Weatherford International Ltd. (WFT.PA)

"What we have signed is for the companies to increase activities in our country, in some cases doubling them," PDVSA President and Energy Minister Rafael Ramirez said at a ceremony in the western city of Maracaibo.

By giving credit lines to PDVSA, the companies will be able to increase their service contracts with OPEC member Venezuela.

The deal may allow PDVSA, whose cash-flow problems are well known, to postpone payments of accumulated debts to its main service providers. Last year, it signed a similar agreement with Schlumberger after accumulating pending debts of almost $1 billion.

PDVSA finances most of the socialist government's spending and does not receive cash for a third of its crude and products exports due to debt agreements and international supply pacts.

In 2012, PDVSA had accumulated $16.5 billion in debts to providers, but it has not released updated numbers since. Ramirez did not say when the new $2 billion credit would be effective or give details of the interest rate agreed.

(Reporting by Alexandra Ulmer in Maracaibo, and Diego Ore in Caracas; Writing by Andrew Cawthorne and Marianna Parraga; Editing by Eric Walsh)



 
Maritime Reporter Magazine Cover Nov 2016 - Workboat Edition

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Subscribe
Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News