UPDATE 2-Helmerich says PDVSA owes it $100 mln, idling rigs

Thu Jan 29, 2009 12:48pm EST

 * Company owed nearly $100 mln by PDVSA

 * Plans to idle additional Venz rigs as contracts expire

 * Earnings per share rise, share price drops 10 pct

 NEW YORK, Jan 29 (Reuters) - U.S. oil driller Helmerich &
Payne (HP.N) said on Thursday Venezuela's state oil company
PDVSA owed it nearly $100 million and that it had begun to idle
drilling rigs in South America's biggest oil producer, sending
shares down 10 percent.

 That move comes two days after Venezuela seized a rig owned
by ENSCO International (ESV.N) after the U.S. company halted
operations because of unpaid bills.

 So far, two of Helmerich & Payne's 11 rigs in the OPEC
member's oil fields have ceased operations, and that number
would rise to five by the end of February as the current work
contracts expire.

 "Absent any improvement of receivable collections, the
remaining rigs would probably become idle by the end of July
this year," Helmerich said in its quarterly earnings release.

 Still, Helmerich executives told analysts on a conference
call that they hoped to resolve the issue and return to normal
operations in Venezuela, and that there had been no discussions
with PDVSA about seizing idle rigs.

 Earlier this week, PDVSA said ENSCO had violated its
contract by halting drilling at the offshore Petrosucre oil
project. It took over and began operating the rig, under the
supervision of the company.

 PDVSA has amassed nearly $8 billion in debts with providers,
and sources have said it had begun skipping payments to partners
and service companies in recent months as declines in crude oil
prices and heavy social spending sapped its finances.

 On Tuesday, PDVSA seized a rig owned by ENSCO and began
operating it under the supervision of ENSCO employees.

 ENSCO said it was owed $36 million by PDVSA subsidiary
Petrosucre, a joint venture between PDVSA and Italy's Eni
(ENI.MI).

 Helmerich also said on net profit for the fiscal first
quarter rose to $145 million, or $1.36 per share, from $107.8
million, or $1.02 per share, a year ago.

 Shares of Helmerich were down 9.8 percent at $22.40 on the
New York Stock Exchange on Thursday afternoon, off an earlier
low at $21.38.
 (Reporting by Matt Daily; Editing by Lisa Von Ahn and Matthew
Lewis)