Venezuela has confiscated another oil rig. This at the same time as they are courting big oil to help finance some needed infrastructure spending. The way I see it, it was probably not very wise of U.S. based Ensco to go there in the first place. Apparently PDVSA has used all it’s capital on other unrelated projects and with the drop in oil prices finds itself unable to pay the Drillers so they are simply confiscating the rigs.
Apparently the big investments in the oil infrastructure in that country by China, Iran and other favored countries didn’t pan out, otherwise they wouldn’t be quietly courting big oil companies again.
It should serve as a warning to big oil to stay away from Venezuela no matter how lucrative the investment proposal sounds.
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