H&P sues Venezuela on nationalized oil rigs

Venezuela and state-run oil holding Petróleos de Venezuela (Pdvsa) face another lawsuit for the nationalization of oil assets, particularly oil rigs.

Helmerich & Payne International and Helmerich & Payne de Venezuela (also known as H&P) lodged on September 2, 2011 a complaint with a US District Court for the District of Columbia against the Bolivarian Republic of Venezuela and Pdvsa, to seek indemnity for damages related to the expropriation of 11 H&P drilling rigs seized by the Venezuelan government in June 2010.

The lawsuit was reported in an H&P press release. The US company notified that it seeks back payments. The legal action is based on "the violation of international laws and breach of contract," in reference to the drilling services provided to Venezuela's oil industry.

Helmerich & Payne remarked that although it is possible to receive a payment for the assets, it was not able to determine how long would it take, or the amount of the compensation, if any.

The Venezuelan government ordered the seizure of 11 H&P drilling rigs on June 29. 2011, on the grounds that the drills had remained idle for a long time.