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Helmerich & Payne loses 11 rigs


It was reported today that PDVSA, Venezuela's state run oil company has taken over 11 rigs from HP

This should have a small material effect on HP’s top line.  With $3.1m collected in the first quarter from Venezuela HP lost more than 5 times that by Venezuela devaluing its currency. 

With $3.3B in PPE the 11 rigs account for $71.6M (2009 10-K pg.74) which is about 2% of PPE.
Click to enlarge


Note:

HP has over 200 land rigs in the U.S. 

A/R due was $26.6M per last 10K, soon after the eleven rigs went idle..  

I wonder if these rigs are insured and if so would seizure by an NOC be covered?