Identifier
Created
Classification
Origin
09CARACAS1116
2009-08-24 15:36:00
CONFIDENTIAL
Embassy Caracas
Cable title:
VENEZUELA: ENSCO DRILLING RIG UPDATE
how-toVZCZCXRO9786 RR RUEHDE RUEHDH DE RUEHCV #1116 2361536 ZNY CCCCC ZZH R 241536Z AUG 09 FM AMEMBASSY CARACAS TO RUEHC/SECSTATE WASHDC 3610 INFO RUEHHH/OPEC COLLECTIVE RUEHAC/AMEMBASSY ASUNCION 1036 RUEHBO/AMEMBASSY BOGOTA 8044 RUEHBR/AMEMBASSY BRASILIA 6177 RUEHLP/AMEMBASSY LA PAZ 2928 RUEHPE/AMEMBASSY LIMA 1208 RUEHMV/AMEMBASSY MONROVIA 0014 RUEHSP/AMEMBASSY PORT OF SPAIN 3756 RUEHQT/AMEMBASSY QUITO 3022 RUEHSG/AMEMBASSY SANTIAGO 4152 RUEHDG/AMEMBASSY SANTO DOMINGO 0680 RHEHNSC/NSC WASHDC RHEHAAA/WHITEHOUSE WASHDC RHEBAAA/DEPT OF ENERGY RUCPDOC/DEPT OF COMMERCE RUEATRS/DEPT OF TREASURY RUMIAAA/HQ USSOUTHCOM MIAMI FL
C O N F I D E N T I A L CARACAS 001116
SIPDIS
ENERGY FOR ALOCKWOOD AND LEINSTEIN, DOE/EIA FOR MCLINE
HQ SOUTHCOM ALSO FOR POLAD
TREASURY FOR MKACZMAREK
COMMERCE FOR 4332/MAC/WH/JLAO
NSC FOR RKING
E.O. 12958: DECL: 08/20/2019
TAGS: EPET EINV ENRG ECON CU VE
SUBJECT: VENEZUELA: ENSCO DRILLING RIG UPDATE
REF: A. (A) CARACAS 853
B. (B) CARACAS 707
C. (C) CARACAS 1017
Classified By: Economic Counselor Darnall Steuart, for reasons
1.4 (b) and (d).
C O N F I D E N T I A L CARACAS 001116
SIPDIS
ENERGY FOR ALOCKWOOD AND LEINSTEIN, DOE/EIA FOR MCLINE
HQ SOUTHCOM ALSO FOR POLAD
TREASURY FOR MKACZMAREK
COMMERCE FOR 4332/MAC/WH/JLAO
NSC FOR RKING
E.O. 12958: DECL: 08/20/2019
TAGS: EPET EINV ENRG ECON CU VE
SUBJECT: VENEZUELA: ENSCO DRILLING RIG UPDATE
REF: A. (A) CARACAS 853
B. (B) CARACAS 707
C. (C) CARACAS 1017
Classified By: Economic Counselor Darnall Steuart, for reasons
1.4 (b) and (d).
1. (C) Bill Chaddick ENSCO Chief Operating Officer, updated
Petroleum AttachQ on ENSCO's situation in Venezuela on August
20. Chaddick (strictly protect throughout) stated that the
U.S. drilling rig company received an unexpected mixed USD
and Bolivar payment on July 23 ($11.2 million and 631,000
Bolivars) that represented nearly 20% of PDVSA's past due
total for use of the ENSCO-69 offshore drilling platform.
2. (C) Chaddick confirmed that PetroSucre employees had
"repaired" the fire damage to the electrical power
distribution equipment on ENSCO-69 and that the rig was
operational (see reftel B). He did not know, however, how
they had done the repairs -- whether they had repaired it
"properly" or had possibly bypassed some systems (e.g.
safety) to get the rig running. ENSCO no longer receives
daily status reports on the rig. (NOTE: PetroSucre sent ENSCO
a letter on June 4, denying its request to re-export the
offshore drill rig, citing the need to keep it on station for
up to six months while PDVSA secured a replacement.)
Chaddick shared that ENSCO sent a letter to the Government of
Liberia (NOTE: ENSCO-69 is Liberian-flagged) requesting the
GOLQ,s intervention to help ENSCO recover the rig. He added
that it plans to send EMBASSY Caracas a status report as well
in order to build a paper trail demonstrating that the
company has not abandoned the asset.
3. (C) According to Chaddick, another service company in
PetroSucre requested ENSCO lease an offshore drilling
platform to begin additional drilling projects in Mariscal
Sucre, but ENSCO declined pending resolution of ENSCO-69Q,s
situation. A representative from the unnamed service company
confided to ENSCO officials that it had heard from PetroSucre
sources that ENSCO-69 would not be available for the
foreseeable future (intimating that it has, in effect, been
confiscated). Chaddick does not believe that PDVSA has any
leads on securing a replacement offshore rig. ENSCO
officials continue to travel to Venezuela seeking meetings
with PDVSA representatives to discuss the outstanding arrears
balance and to determine PDVSA's long-term intentions for
ENSCO-69.
4. (C) ENSCO expects that the ENSCO-68 offshore drilling rig
operating in the Gulf of Venezuela (under contract to
Chevron, Repsol, and Teikoku),will be on station through
March 2010 (see reftel A and C). Technical difficulties
continue to hinder Repsol's progress, postponing the start
date for Teikoku's exploratory well.
DUDDY
SIPDIS
ENERGY FOR ALOCKWOOD AND LEINSTEIN, DOE/EIA FOR MCLINE
HQ SOUTHCOM ALSO FOR POLAD
TREASURY FOR MKACZMAREK
COMMERCE FOR 4332/MAC/WH/JLAO
NSC FOR RKING
E.O. 12958: DECL: 08/20/2019
TAGS: EPET EINV ENRG ECON CU VE
SUBJECT: VENEZUELA: ENSCO DRILLING RIG UPDATE
REF: A. (A) CARACAS 853
B. (B) CARACAS 707
C. (C) CARACAS 1017
Classified By: Economic Counselor Darnall Steuart, for reasons
1.4 (b) and (d).
1. (C) Bill Chaddick ENSCO Chief Operating Officer, updated
Petroleum AttachQ on ENSCO's situation in Venezuela on August
20. Chaddick (strictly protect throughout) stated that the
U.S. drilling rig company received an unexpected mixed USD
and Bolivar payment on July 23 ($11.2 million and 631,000
Bolivars) that represented nearly 20% of PDVSA's past due
total for use of the ENSCO-69 offshore drilling platform.
2. (C) Chaddick confirmed that PetroSucre employees had
"repaired" the fire damage to the electrical power
distribution equipment on ENSCO-69 and that the rig was
operational (see reftel B). He did not know, however, how
they had done the repairs -- whether they had repaired it
"properly" or had possibly bypassed some systems (e.g.
safety) to get the rig running. ENSCO no longer receives
daily status reports on the rig. (NOTE: PetroSucre sent ENSCO
a letter on June 4, denying its request to re-export the
offshore drill rig, citing the need to keep it on station for
up to six months while PDVSA secured a replacement.)
Chaddick shared that ENSCO sent a letter to the Government of
Liberia (NOTE: ENSCO-69 is Liberian-flagged) requesting the
GOLQ,s intervention to help ENSCO recover the rig. He added
that it plans to send EMBASSY Caracas a status report as well
in order to build a paper trail demonstrating that the
company has not abandoned the asset.
3. (C) According to Chaddick, another service company in
PetroSucre requested ENSCO lease an offshore drilling
platform to begin additional drilling projects in Mariscal
Sucre, but ENSCO declined pending resolution of ENSCO-69Q,s
situation. A representative from the unnamed service company
confided to ENSCO officials that it had heard from PetroSucre
sources that ENSCO-69 would not be available for the
foreseeable future (intimating that it has, in effect, been
confiscated). Chaddick does not believe that PDVSA has any
leads on securing a replacement offshore rig. ENSCO
officials continue to travel to Venezuela seeking meetings
with PDVSA representatives to discuss the outstanding arrears
balance and to determine PDVSA's long-term intentions for
ENSCO-69.
4. (C) ENSCO expects that the ENSCO-68 offshore drilling rig
operating in the Gulf of Venezuela (under contract to
Chevron, Repsol, and Teikoku),will be on station through
March 2010 (see reftel A and C). Technical difficulties
continue to hinder Repsol's progress, postponing the start
date for Teikoku's exploratory well.
DUDDY