HOUSTON (AP) -- Oil and natural gas services provider Exterran Holdings Inc. said Tuesday that it will receive $442 million from the Venezuelan government in return for company assets that were nationalized in 2009.
Exterran said it received an initial payment of $177 million in cash from state-run Petroleos de Venezuela SA, or PDVSA, and it will get another $265 million in cash in installments. The payments will be complete in the third quarter of 2016. Exterran will use $50 million from the initial payment to pay back insurance proceeds. The remaining funds will be used to repay company debt and for general corporate purposes.
The company agreed to suspend an arbitration proceeding filed by its Spanish subsidiary against Venezuela.
In March PDVSA agreed to pay Exterran $112 million in return for assets from joint ventures that were also nationalized. Those payments will also be complete in the third quarter of 2016. As part of Tuesday's agreement, the joint ventures will also suspend arbitration proceedings pending full payment from PDVSA.
Exterran said it took $329.7 million in impairment charges in 2009 to reflect the nationalizations. It also took a $90 million charge to write off its investment in the joint venture.
Shares of Exterran rose $2.70, or 17.4 percent, to close at $18.21.
