CARACAS, June 23 (Reuters) - Venezuela will nationalize 11 oil rigs belonging to U.S. company Helmerich and Payne <HP.N>, the latest takeover as socialist President Hugo Chavez struggles with lower oil output and a recession.
Chavez has nationalized billions of dollars in oil projects and equipment in the last three years as part of his drive to increase state control of key industries in South America’s top oil exporter.
Oil Minister Rafael Ramirez said on Wednesday the drilling rigs, which have been idled for months following a dispute over pending payments by state oil company PDVSA, were being nationalized to bring them back into production.
"There is a group of drill owners that has refused to discuss tariffs and services with PDVSA and have preferred to keep this equipment stored for a year," Ramirez told reporters in the oil producing state of Zulia. "That is the specific case with U.S. multinational Helmerich and Payne."
He said companies that refused to put their rigs into production were part of a plan to weaken Chavez’s government, which has suffered from lower oil production since 2008, damaging the OPEC member’s economy during a deep recession.
