When government doesn’t want to pay a bill, you have little recourse except the courts in most law abiding countries.
In the dictatorship that is Venezuela, not only does the government not pay the bill, but it takes you means of livelihood to boot for daring to attempt to collect what you’re owed. Such is the fate of one American owned country which tried to collect on its debt.
Venezuela will nationalize a fleet of oil rigs belonging to U.S. company Helmerich and Payne, the latest takeover in a push to socialism as President Hugo Chavez struggles with lower oil output and a recession.
The 11 drilling rigs have been idled for months following a dispute over pending payments by the OPEC member’s state oil company PDVSA. Oil Minister Rafael Ramirez said on Wednesday the rigs, the Oklahoma-based company’s entire Venezuelan fleet, were being nationalized to bring them back into production.
The reason they weren’t presently in production is the Venezuelan government refuses to pay them for $49 million for past services.
Of course the government of Venezuela has devised an excuse for what would be grand theft in any other law abiding society:
Ramirez said companies that refused to put their rigs into production were part of a plan to weaken Chavez’s government,
“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.”
Interestingly, we here have the opposite problem. Venezuela’s government is trying to get drilling rigs into production and has resorted to nationalized theft to do it.
We have a government trying to take drilling rigs out of production, and is prepared to ignore court rulings to the contrary and do so by executive fiat.