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Venezuela seizes oil rigs owned by US company

tacomancer

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Venezuela seizes oil rigs owned by US company - Yahoo! News

CARACAS, Venezuela – Venezuela's government has seized control of 11 oil rigs owned by U.S. driller Helmerich & Payne, which shut them down because the state oil company was behind on payments.
Oil Minister Rafael Ramirez announced that Venezuela would nationalize the Tulsa, Oklahoma-based company's rigs. He said in a statement Wednesday that Helmerich & Payne had rejected government demands to resume drilling operations for more than a year.
Helmerich & Payne announced in January 2009 that it was stopping operations on two of its drilling rigs, because Venezuela's state-run oil company, PDVSA, owed the company close to $100 million. It said it would shut down the rest of its rigs by the end of July as contracts expired unless PDVSA began to make good on its debts.
The company said Thursday that PDVSA's debt was $43 million as of June 14.
So, instead of keeping to its agreements, Venezuela's government has decided to seize the rigs. Shame on you Chavez.
 

Aunt Spiker

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What's he gonna do - seize the whole damn world!?

He's trying to stir a STORM and distract from the fact that he horded food that rotted away and then seized food from grocery stores to make up for the loss.

Oh - and of course because of Obama's moratorium. I'm sure that kick started the notion.

So - when a US-based company's property is taken over by another country what's the next action to take? I bet you Obama aint gonna do a damn thing 'cause that's what he's good at.
 
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d0gbreath

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What's he gonna do - seize the whole damn world!?

He's trying to stir a STORM and distract from the fact that he horded food that rotted away and then seized food from grocery stores to make up for the loss.

Oh - and of course because of Obama's moratorium. I'm sure that kick started the notion.

So - when a US-based company's property is taken over by another country what's the next action to take? I bet you Obama aint gonna do a damn thing 'cause that's what he's good at.
Now hold on there Spiker. You sound like you are advocating war. The US government does not back individual companies when they decide to operate in other parts of the world. The US ambassador and consulate are their only means of recourse. Hopefully they'll get their wells back by those means (negotiations).

If China decided tomorrow to take over all of the US company's manufacturing facilities the US government would not declare war on China. It's about time this started happening. This type of thing could provide more jobs for Americans than you could possibly imagine.

US companies working on foreign lands must provide their own security. They are on their own.
 
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Aunt Spiker

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Now hold on there Spiker. You sound like you are advocating war. The US government does not back individual companies when they decide to operate in other parts of the world. The US ambassador and consulate are their only means of recourse. Hopefully they'll get their wells back by those means (negotiations).

If China decided tomorrow to take over all of the US company's manufacturing facilities the US government would not declare war on China. It's about time this started happening. This type of thing could provide more jobs for Americans than you could possibly imagine.

US companies working on foreign lands must provide their own security. They are on their own.
LOL - no, I'm not advocating war. . . definitely not - we have too much of that going on and I hope that this can be resolved without such extreme measures.
I'm suggesting what you pointed out: government now must get involved. . . .at the discretion of the President.

Personally, though, I think it was just inviting trouble to roost near Venezuela - Chavez isn't know for being level. We're now, likely, in Chavez's pocket - and according to Turkish from Snatch, in his pocket is exact where we DON'T want to be.
 
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donsutherland1

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Venezuela seizes oil rigs owned by US company - Yahoo! News



So, instead of keeping to its agreements, Venezuela's government has decided to seize the rigs. Shame on you Chavez.
This is par for the course for that increasingly kleptocratic regime. What is astounding is that even after a host of forced nationalizations over the past few years, foreign companies stubbornly insist on doing business there. Seemingly, they reason that only others will face expropriation of their assets and ignore what is a significant and growing risk, especially as Venezuela's economy languishes.
 

ReverendHellh0und

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The company should plug em and sink em.



That's what they get though for going into deals with a despot.
 

justabubba

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bravo chavez!
the oil company gambled and lost
the country which owns the oil under those wells insisted that the wells operate
the (former) owner balked because it was being late paid
the country did what was in the country's best interest and seized control of the wells
my guess is the former owner will be able to get them back as soon as the oil underneath is depleted
 

ReverendHellh0und

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bravo chavez!
the oil company gambled and lost
the country which owns the oil under those wells insisted that the wells operate
the (former) owner balked because it was being late paid
the country did what was in the country's best interest and seized control of the wells
my guess is the former owner will be able to get them back as soon as the oil underneath is depleted


yes comrade VIVA despot chavez :roll:
 

justabubba

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ReverendHellh0und

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good to see that you agree ... i must confess, that was not expected
and i was beginning to think you would never wise up



Right, you cheer your anti-American despot and his siezing of American assets because of your asinine hatred of oil companies. :thumbs:
 

Aunt Spiker

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Hmm- since a few have been shut down for the last year I wonder how safe they are.
What would happen if they take them over, start full operation, and then unleash a bigger leak that BP and Shell ever could dread?
 

justabubba

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Right, you cheer your anti-American despot and his siezing of American assets because of your asinine hatred of oil companies. :thumbs:
those assets were not owned by America
get your facts right

i don't hate oil companies
but i do find company principals whose reach exceeds their grasp to be worthy of derision
 

ReverendHellh0und

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those assets were not owned by America
get your facts right

i don't hate oil companies
but i do find company principals whose reach exceeds their grasp to be worthy of derision



These rigs weren't owned/operated by the American company to whom the venezuelans you champion are in debt to?
 

Aunt Spiker

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those assets were not owned by America
get your facts right

i don't hate oil companies
but i do find company principals whose reach exceeds their grasp to be worthy of derision
They are an American-Company Owned asset - the federal government does not own them.

What this action constitutes for is theft, however. . . which is illegal per state (Oklahoma) and Federal laws.
 

deltabtry

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American owned oil rigs or otherwise, when drilling in a foreign country these rigs just don't load it onto a ship and ship it off, these rigs drill in Venezuela with contracts drawn up by Venezuela or any other country for that matter. The oil is drilled for the country for which these rigs operate in.
 

RightinNYC

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bravo chavez!
the oil company gambled and lost
the country which owns the oil under those wells insisted that the wells operate
the (former) owner balked because it was being late paid
the country did what was in the country's best interest and seized control of the wells
my guess is the former owner will be able to get them back as soon as the oil underneath is depleted
Oil = Property of Venezuela
Rigs = Property of American company

This is not a complicated concept.

i don't hate oil companies
but i do find company principals whose reach exceeds their grasp to be worthy of derision
So anyone who conducts business with a foreign country is worthy of derision? Great economic policy you've got there.
 
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justabubba

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These rigs weren't owned/operated by the American company to whom the venezuelans you champion are in debt to?
but at least you do now acknowledge they are NOT - and were not - owned by the USA
progress
 

justabubba

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They are an American-Company Owned asset - the federal government does not own them.

What this action constitutes for is theft, however. . . which is illegal per state (Oklahoma) and Federal laws.
those assets formerly owned by an American based company are located in the country of venezuela and subject to its laws/rules
American federal laws, oklahoma states laws have absolutely NO bearing there
 

justabubba

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American owned oil rigs or otherwise, when drilling in a foreign country these rigs just don't load it onto a ship and ship it off, these rigs drill in Venezuela with contracts drawn up by Venezuela or any other country for that matter. The oil is drilled for the country for which these rigs operate in.
i bet you were attempting to make a point there and i just missed it

would you mind taking another stab at it so that i can figure it out?
 

RightinNYC

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but at least you do now acknowledge they are NOT - and were not - owned by the USA
progress
Any reasonable person reading "his seizing of American assets" in the context of this article would come away understanding that Rev was referring to assets owned by an American corporation, not assets owned by the federal government (particularly given that he had already referred to the company as owner just two posts before that). Why do you feel the need to deliberately misconstrue people's words? Why not just debate the issue?
 

justabubba

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Oil = Property of Venezuela
Rigs = Property of American company

This is not a complicated concept.
appears that it must be
did you not read the story? the rig is now the property of the venezuelan government




So anyone who conducts business with a foreign country is worthy of derision?
who said that? please point it out as that would be something only a stupid person would concoct

Great economic policy you've got there.
a business person doing business in another country has to recognize that they are subject to the laws and regulations of that country
the American company failed to operate the oil rigs (because they were being slow paid)
anybody here think that halliburton would be able to get away with not performing its contracts in iraq if its payments were not promptly received?
didn't think so
why does the American rig owner think they can get away with it in chavez' country?
my economic policy is to be businesslike. the American rig owner was not ... he was stupid. and why is it that you have come to his defense for failing to operate the rig which was contracted to generate oil revenues to which both the rig owner and country of venezuela were to become fairly enriched?
 

RightinNYC

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appears that it must be
did you not read the story? the rig is now the property of the venezuelan government
Thanks for that incisive analysis.

who said that? please point it out as that would be something only a stupid person would concoct
And yet that's what you said.

"i do find company principals whose reach exceeds their grasp to be worthy of derision"

Anyone who operates in a foreign country (without a choice of law provision) is subject to those foreign laws. By subjecting themselves to those foreign laws, companies are relying on the operation of those foreign courts. By definition, operating in a foreign country is operating in an area outside of your "grasp."

a business person doing business in another country has to recognize that they are subject to the laws and regulations of that country
the American company failed to operate the oil rigs (because they were being slow paid)
anybody here think that halliburton would be able to get away with not performing its contracts in iraq if its payments were not promptly received?
didn't think so
If Halliburton refused to perform its contracts, the US government would take action under the terms of the contract or would seek another judicial remedy. That's just a teensy bit different from nationalization.

why does the American rig owner think they can get away with it in chavez' country?
Probably because he had a signed contract saying "we will pay you X dollars for Y service" and expected that it meant the Venezuelan government would actually meet its obligations.

my economic policy is to be businesslike. the American rig owner was not ... he was stupid.
It sounds like you don't have the slightest idea what you're talking about.

and why is it that you have come to his defense for failing to operate the rig which was contracted to generate oil revenues to which both the rig owner and country of venezuela were to become fairly enriched?
And why is it that you keep of ignoring the fact that Venezuela refused to pay the tens of millions that it owed?
 

justabubba

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Any reasonable person reading "his seizing of American assets" in the context of this article would come away understanding that Rev was referring to assets owned by an American corporation, not assets owned by the federal government (particularly given that he had already referred to the company as owner just two posts before that). Why do you feel the need to deliberately misconstrue people's words? Why not just debate the issue?
another poster fails to accurately convey his point and i am the one in error for reading it as it was written
in short, it does appear that you have run out of viable rebuttals
 

ric27

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another poster fails to accurately convey his point and i am the one in error for reading it as it was written
in short, it does appear that you have run out of viable rebuttals
Chavez is simply pushing his Marxist ideology. Not only is he screwing with American companies, but also with Carlos Slim's assets and George Soros's Petroleo Brasileiro S.A.Petrobras George Soros Buys Petroleo Brasileiro S.A.Petrobras, AutoZone Inc., InterOil Corp., Sells Arch Coal Inc., Public Service Enterprise Group, PPL Corp. -- GuruFocus.com
 

donsutherland1

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Unfortunately, Helmerich & Payne has little legal recoourse. It is not likely that it can rely on the rule of law for justice in Venezuela given past precedent concerning the Chavez government's seizure of assets. There is no international court for addressing commercial disputes. Bringing litigation outside of Venezuela would constitute an attempt to ask a foreign court to assert extraterritorial jurisdiction, a problematic concept that courts should reject given the potential abuses inherent in such a concept.
 
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