Cathedral Energy Sells Venezuela Assets to PDVSA JV

Canada’s Cathedral Energy Services has struck a joint venture agreement with PDVSA, and plans to sell and lease a number of its own assets to the newly formed Vencana Servicios Petroleros venture. The JV is to be 40% owned by Cathedral, with the rest controlled by PDVSA, Cathedral says. Under the deal, Cathedral will sell its operations in the Venezuelan city of Maturin to the new venture, including buildings and various types of equipment, and will also lease Vencana its measurement-while-drilling equipment. Officials at Cathedral and PDVSA could not immediately be reached for comment. Payment for Cathedral’s assets will be 60% in cash and will come from PDVSA, while the remaining payment will be taken as Cathedral’s contribution to the new venture in exchange for its 40% participation. The company notes that PDVSA will have several payment milestones but it offered no details of dates or amounts. The Vencana venture is expected to devote its efforts to increasing directional drilling.