Helmerich & Payne still battling Venezuela for compensation on seized assets

Source: Tulsa World, Okla.mini storageAug. 03--Tulsa-based contract driller Helmerich & Payne settled a dispute related to its seized former Venezuela rigs for $15 million in July, but the case against the South American country is still being battled in federal court.The settlement comes from a third party not related to the nation of Venezuela or PDVSA, the state-run oil producing company. Helmerich & Payne General Counsel Steve Mackey said he could not disclose the name of the company.The settlement came from an arbitration in London, Mackey said."This case was related to the rig seizures but didn't involve the country of Venezuela or PDVSA," Mackey said.Helmerich & Payne had a similar settlement last year for $7.5 million with another unnamed company related to the rig seizures, Mackey said.Helmerich & Payne has been battling for compensation since Venezuela seized the company's drilling rigs there on June 30, 2010, and brought them under sway of the state-run oil company Petroleos de Venezuela SA, or PDVSA.Two weeks later, a presidential decree was issued officially taking Helmerich & Payne's assets. The seizures ended up being a part of a larger effort to take control of energy properties in the country.Helmerich & Payne's lawsuit said the armed soldiers were an attempt to intimidate the company into forgiving outstanding debts and keep doing services for PDVSA without being paid.Helmerich & Payne sued the Venezuelan government and PDVSA for $32 million in an American federal court in 2011, claiming that the courts in Venezuela were not a fair venue because they were controlled by then-president Hugo Chavez. Chavez died in March."We are still going to vigorously pursue our case against Venezuela and PDVSA," Mackey said. The Washington D.C., court began hearing oral arguments in that case on July 15, he said, and Helmerich and Payne is expecting a response before the end of 2013.Helmerich & Payne had worked in Venezuela for nearly 52 years before the seizures, and operated 11 drilling rigs there.self storageulsa's Williams Cos. Inc. also battled the Venezuelan government for three years over seizure of gas compression and treatment assets in the South American country.Williams settled with the country in March 2012 after contesting the seizures with the International Centre for Settlement of Investment Disputes, an organization formed by the World Bank Group.Williams was paid $312 million to settle that dispute.Timeline of Tulsa-owned Energy Assets Seized in VenezuelaMay 2009: Venezuela takes over El Furrial and Pigap II gas compression plants partially owned by Williams Cos. Inc.July 2009: Helmerich & Payne idles last of 11 rigs in Venezulea due to non-payment.June 2010: Venezuelan government seizes Helmerich & Payne rigs.March 2011: Williams announces it is seeking arbitration for payment on Pigap and El Furrial seizures.September 2011: H&P sues Venezuela in federal court.March 2012: Williams announces $312 million in total settlements over Pigap, El Furrial and Accroven joint ventures.Friday: Helmerich & Payne announces settlement to receive $15 million from unnamed third-party in Venezuelan seizures.Timeline of Tulsa-owned energy assets seized in VenezuelaMay 2009: Venezuela takes over El Furrial and Pigap II gas compression plants partially owned by Williams Cos. Inc.July 2009: Helmerich & Payne idles last of 11 rigs in Venezulea due to nonpayment.June 2010: Venezuelan government seizes Helmerich & Payne rigs.March 2011: Williams announces it is seeking arbitration for payment on Pigap and El Furrial seizures.September 2011: H&P sues Venezuela in federal court.March 2012: Williams announces $312 million in total settlements over Pigap, El Furrial and Accroven joint ventures.Friday: Helmerich & Payne announces settlement to receive $15 million from unnamed third party in Venezuelan seizures.Kyle Arnold 918-581-8380kyle.arnold@tulsaworld.comCopyright: ___ (c)2013 Tulsa World (Tulsa, Okla.) Visit Tulsa World (Tulsa, Okla.) at .tulsaworld.com Distributed by MCT Information Services迷你倉