World Economy

Venezuela Owes $60b to Oil Contractors

Venezuela Owes $60b to Oil ContractorsVenezuela Owes $60b to Oil Contractors

Venezuela has more crude oil than any other nation. But the crisis there is so bad that even oil companies are losing big money, CNNMoney reported .The world’s largest oil service provider, Schlumberger, announced Friday that it wrote down $938 million of its holdings in Venezuela. It already took a $460 million loss last year because of unpaid bills from the Venezuelan government and its state-run oil company. Schlumberger makes equipment for oil companies and provides them expertise and technology. The company says it will stay in Venezuela and try to get its money back. But that could be difficult. The country owes almost $60 billion to contractors and suppliers like Schlumberger, according to an analysis published by Harvard Law School, and it already defaulted on some of its bonds late last year. Venezuela’s troubles have spiraled in part because it is severely behind on payments to oil service providers like Schlumberger, Halliburton and others. Those companies have gradually cut back operations in Venezuela over the years.


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