Oil Rigs Seized in Venezuela

Superior Energy Services, Inc. announced that the government of Venezuela has seized two of the Company’s hydraulic snubbing units from its facility in Anaco, Venezuela.

Superior Energy Services, Inc. Confirms Expropriation of Company’s Snubbing Units in Venezuela

Superior Energy Services, Inc. (NYSE: SPN) today announced that the government of Venezuela has seized two of the Company’s hydraulic snubbing units [oil rigs] from its facility in Anaco, Venezuela.

Dave Dunlap, Superior’s President and CEO commented, “We are hopeful that in the coming weeks we can reach an agreement with our customer, Petroleos de Venezuela S.A. (PDVSA), to receive payments owed to us for work performed and to secure the return of our equipment. We are extremely proud of our dedicated local workforce in Venezuela who have provided a safe and efficient service to PDVSA for more than 15 years. We were the only company in Venezuela capable of providing live well snubbing services to PDVSA and were doing it with a local workforce who achieved an outstanding safety and performance record. Snubbing into a live well requires highly skilled personnel backed by an experienced management team and reliable equipment.”

Superior has generated less than $10.0 million in revenue from Venezuela during the first nine months of 2013. The total amount owed to Superior from PDVSA is approximately $9.0 million. Net book value of the assets seized is under $1.0 million.

Superior Energy Services, Inc. serves the drilling, completion and production-related needs of oil and gas companies worldwide through its brand name drilling products and its integrated completion and well intervention services and tools, supported by an engineering staff who plan and design solutions for customers.

Source: Superior Energy Services.