CARACAS -- Oil services provider Schlumberger Limited (NYSE:SLB) has announced that it will cut its activity in Venezuela as it goes unpaid in the oil-rich nation.
"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 said in a statement.
"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."
In March 2013, Schlumberger said it would reduce work in Venezuela because of mounting overdue payments from PDVSA but 2 months later announced an agreement to provide a $1 billion rolling credit for its operations in Venezuela.
Schlumberger did not say how much it is currently owed in Venezuela.
Venezuela's state owned oil company PDVSA released a message by tweet saying that it "categorically denies the information about the supposed reduction of operations of the company Schlumberger Ltd. in Venezuela."
Schlumberger, which is the world’s leading oil services company, employs 95,000 people around the world and reported revenues of $35.47 billion in 2015.
"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," the company affirmed.