Schlumberger said Tuesday that it will reduce its activity level in Venezuela due to missing payments from state-owned PDVSA.
The company said it is reducing its activity in the cash strapped country to “align operations with cash collections.”
“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.
The company said that while it remains fully committed to supporting the Venezuelan exploration and production industry it is unable to increase its accounts receivable balances beyond their current level.
The activity level reduction take place over the current month.
Schlumberger said the reduction “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.”
Schlumberger also reaffirmed its first quarter revenue guidance of about $6.5 billion.
In a statement issued on Tuesday, Venezuela’s state-owned PDVSA said it “categorically denies” media reports about the decision.
PDVSA said it is continuing to make payments to Schlumberger.
The company added that any work it requires will be distributed to other service firms.
Venezuela recently declared every Friday a public holiday in an effort to curb energy consumption as the nation deals with chronic power outages.