Venezuela’s PDVSA signs financing deals with service providers

Jun 02, 2014 12:00 AM

State energy giant Petroleos de Venezuela S.A. has signed financing deals worth $2.2 billion with U.S. oil-service providers Schlumberger and Halliburton and Swiss-based Weatherford International, Venezuela’s Energy Minister and PDVSA’s President Rafael Ramirez said.

Schlumberger’s decision to renew a $1 billion credit line that it opened in May 2013 will allow it to increase activities in the massive Orinoco Oil Belt, Ramirez told.

“We had an excellent meeting with the president of Schlumberger. He went with us to the (Orinoco Oil Belt). He saw the reality with us. He was excited about the work we’re doing there and ... we reached agreement” on a $600 million financing deal, he said.

Ramirez added that Weatherford also agreed to a $600 million line of credit.

“We need a lot of well services, specialized services, steel cables ... we agreed to a scheme with the three giants whereby their parent companies will provide credit lines and finance the activity so invoicing and cash flow don’t become a problem,” he said.

Venezuela holds nearly 300 billion barrels of proved oil reserves, or around 25 percent of the global total, international certification processes have shown.

The South American country produces approximately 3 million barrels of oil per day and exports roughly 2.5 million bpd, mainly to the United States and China, according to official figures.

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