Schlumberger - Not getting paid...

[ddlopata084]

Clear sign of stress, likely indicates falling production in Venezuela?

Schlumberger announced that it will reduce its activity in Venezuela to align operations with cash collections. This measure is a result of insufficient payments received in recent quarters and a lack of progress in establishing new mechanisms that address past and future accounts receivable. Schlumberger appreciates the efforts of its main customer in the country to find alternative payment solutions and remains fully committed to supporting the Venezuelan exploration and production industry. However, Schlumberger is unable to increase its accounts receivable balances beyond their current level. The reduction in activity levels will take place over the current month and will be made in close coordination with all customers in Venezuela to continue servicing those customers with available cash flow, while allowing for a safe and orderly wind down of operations for others. Additionally, Schlumberger reaffirms its first-quarter revenue guidance of approximately $6.5B, consensus $6.51B. :theflyonthewall.com

[dan_s]

Nigeria is over a year behind on payments to many of its oilfield services firms. 2/3s of the OPEC countries are broke.