By Steven Bodzin

July 8 (Bloomberg) -- Venezuela oil drilling slowed to a five-year low in June after the country’s state oil company deferred payments to service companies, spurring rig shutdowns.

Oil rig use fell to 58 from 53 in the previous month, while natural-gas drillers kept using three rigs, according to figures released today by Baker Hughes Inc., the world’s third-largest oilfield-services company, which tracks drilling worldwide. The combined total is the lowest since October 2004.

Venezuela’s state oil company, Petroleos de Venezuela, or PDVSA, had planned to increase drilling this year to boost its spare capacity, Eulogio del Pino, the company’s vice president of exploration and production, said Nov. 26. Instead, drillers are shutting down because of bills that have gone unpaid for as long as a year.

Helmerich & Payne Inc. said last month that eight of its 11 rigs in Venezuela weren’t in use because of unpaid bills. Ensco International Inc. ended a contract for a rig over bills.

Local media reported on June 22 that Ensign Energy Services Inc. idled five rigs last month. Workers at rigs owned by China National Petroleum Corp. were on strike on June 2 over late pay. Ensign didn’t respond to five calls for comment. Officials in the CNPC office in Caracas declined to comment.

PDVSA fell behind on bills when oil prices dropped more than $100 a barrel after a record of $147.27 a barrel in July 2008. While some companies have received payments in recent months, outstanding bills of at least $5 billion remained as of a month ago, said Rafael Ramirez, the company’s president. He said all payments would be caught up by the end of this month.

To contact the reporter on this story: Steven Bodzin in Caracas at sbodzin@bloomberg.net.

Last Updated: July 8, 2009 10:24 EDT