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Venezuela PDVSA awards $3.2 billion oil service contracts, protest brews
Source: Reuters
COMMODITIES | Wed Sep 21, 2016 | 1:39pm EDT
Venezuela PDVSA awards $3.2 billion oil service contracts, protest brews
By Alexandra Ulmer, Marianna Parraga and Girish Gupta | CARACAS/HOUSTON
Venezuela's state oil company PDVSA said on Wednesday it has awarded $3.2 billion in contracts to drill wells in the Orinoco Belt, although sources close to the matter said some foreign partners are uncomfortable with the rushed tender and structural problems that could hinder projects.
The fresh discontent comes after Reuters reported in July that tiny Colombian trucking firm Trenaco, whose management was close to Venezuelan President Nicolas Maduro, won a multibillion-dollar contract to carry out similar work despite having no relevant experience. (reut.rs/2aqQFyr)
In a rare rebellion, foreign companies protested to PDVSA that Trenaco was vastly underqualified, leading to the cancellation of the $4.5 billion deal amid concerns about transparency and political favoritism.
In a similar tender renewed this year, Schlumberger NV, Oklahoma-based Horizontal Well Drillers and Venezuelan contractor Y&V won contracts to drill a total of 480 wells at three joint ventures between PDVSA (PDVSA.UL) and foreign partners.
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Venezuela PDVSA awards $3.2 billion oil service contracts, protest brews
By Alexandra Ulmer, Marianna Parraga and Girish Gupta | CARACAS/HOUSTON
Venezuela's state oil company PDVSA said on Wednesday it has awarded $3.2 billion in contracts to drill wells in the Orinoco Belt, although sources close to the matter said some foreign partners are uncomfortable with the rushed tender and structural problems that could hinder projects.
The fresh discontent comes after Reuters reported in July that tiny Colombian trucking firm Trenaco, whose management was close to Venezuelan President Nicolas Maduro, won a multibillion-dollar contract to carry out similar work despite having no relevant experience. (reut.rs/2aqQFyr)
In a rare rebellion, foreign companies protested to PDVSA that Trenaco was vastly underqualified, leading to the cancellation of the $4.5 billion deal amid concerns about transparency and political favoritism.
In a similar tender renewed this year, Schlumberger NV, Oklahoma-based Horizontal Well Drillers and Venezuelan contractor Y&V won contracts to drill a total of 480 wells at three joint ventures between PDVSA (PDVSA.UL) and foreign partners.
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Read more: http://www.reuters.com/article/us-venezuela-pdvsa-contract-idUSKCN11R1NY
