Williams, Other Services Companies in Venezuela's Sights (WMB, HAL, SLB, BJS, BHI)
Published:
Last Updated:
The Venezuelan government passed a law permitting the nationalization of oil field services companies, compensating companies for expropriating assets by issuing bonds instead of paying with cash. The law could even lead to the annulment of existing contracts. Williams Companies (NYSE:WMB) appears to be the first target, and Halliburton Company (NYSE:HAL), Schlumberger Ltd. (NYSE:SLB), BJ Services Company (NYSE:BJS), and Baker Hughes Inc. (NYSE:BHI) could all be on the list.
Williams will write down $241 million in unpaid fees from Venezuela’s state oil company Petroleos de Venezuela SA (PDVSA). Other companies that might be affected, according to Upstreamonline.com, are Halliburton, Schlumberger Ltd., BJ Services, and Baker Hughes.
The situation in Venezuela can only get worse as production falls and PDVSA’s debts mount. US companies doing work in Venezuela are probably living in a fool’s paradise if they expect either to be paid for their work or to be able to hold on to their investments.
At least oil company stocks are up with higher oil prices today.
Paul Ausick
May 8, 2009
It’s Your Money, Your Future—Own It (sponsor)
Retirement can be daunting, but it doesn’t need to be.
Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!
Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.