The economic woes that continue to plague Venezuela has caused another prominent U.S. oil company to begin ramping down activity in the South American country.
According to the Curacao Chronicle, Halliburton Co. said Monday that they are curtailing activity due to PDVSA, the state oil company of Venezuela, being unable to reconcile unpaid bills. Not only has low oil prices hampered PDVSA’s ability to pay bills, but according to economic expert Adrian Jose, they are also facing paying large bond payments this year that will soak up even more capital.
Halliburton’s decision comes just two weeks after Schlumberger Ltd. announced they were scaling back as a result of PDVSA’s inability to pay bills. Schlumberger, which is the number one oil services company in the world, said in a statement that they could no longer increase accounts receivable balance beyond the current level forcing them to reduce activity in the nation.
Halliburton made the announcement in an earnings statement that was released on Open Corporates this Monday. In addition to Venezuela, Halliburton has also reduced activity in Brazil, Mexico and Colombia. As a result, the earnings statement showed a 22 percent decrease in Latin America revenue for Halliburton during the first quarter to a total of $541 million. Furthermore, Halliburton reported and posted on Dateas.com its regional operating income declined 51 percent during the first three months of the year to $48 million.