Welcome to the Crystallex HUB on AGORACOM

Crystallex International Corporation is a Canadian-based gold company with a successful record of developing and operating gold mines in Venezuela and elsewhere in South America

Free
Message: UPDATE 1-Ensco terminates contract with Venezuelan Petrosucre

UPDATE 1-Ensco terminates contract with Venezuelan Petrosucre

posted on Jun 08, 2009 08:52AM

June 8 (Reuters) - Offshore drilling contractor Ensco International Inc (ESV.N) said it terminated its contract for a jackup drilling rig with Petrosucre, after the unit of Venezuelan state oil company PDVSA had failed to pay past dues.

Ensco, which said its net receivable from Petrosucre is $16.9 million, added its second quarter results would be down by 15 cents a share as a result of the same.

On May 11, the Dallas based-company said it filed a termination notice with Petrosucre after negotiations with the company proved unfruitful.

"The notice period has ended and the contract between Ensco and Petrosucre is now terminated," Ensco said in a statement on Monday, adding it removed all its remaining employees from the rig.

Ensco also said it will take legal action against Petrosucre for damages to the rig, which has not yet been returned and continues to be operated by Petrosucre.

In January 2009, Ensco suspended its drilling operations after Petrosucre failed to pay past-due invoices. In response, Petrosucre seized the rig and restarted drilling with its own employees.

In a separate statement, Ensco said it took delivery of the second of its seven ultra-deepwater semisubmersible rigs being constructed in Singapore. The remaining five, under construction, are progressing on schedule, it added.

Shares of the Ensco were trading down 2 percent at $37.87 Monday morning on the New York Stock Exchange. (Reporting by Antonita Madonna Devotta in Bangalore; Editing by Jarshad Kakkrakandy)



Share
New Message
Please login to post a reply