SLB, Formentera Plan to Reactivate Oil Rigs in Venezuela

Global technology company SLB and private equity firm Formentera Partners are working to reactivate oil drilling rigs in Venezuela or potentially bring additional rigs into the country in the coming months, executives from both firms said on Wednesday during a conference in Houston.

Formentera is in talks with international oilfield service providers to import drilling rigs, while SLB plans to reactivate up to 15 rigs already in Venezuela, according to Reuters. Up to four of SLB’s rigs could return to operation this year, depending on contracts with oil producers.

Only two onshore drilling rigs were active in Venezuela at the end of July, according to Baker Hughes data, limiting the country’s ability to increase production, which currently stands at around 1.25 million barrels per day (mmbbl/d).

International oilfield service companies have faced challenges in bringing specialized equipment into Venezuela, including obtaining permits and arranging ground transportation. Executives said companies are working to move equipment from other countries while engaging with the Venezuelan government to ease these restrictions.

Venezuelan Oil Minister Paula Henao, speaking earlier at the conference, called on companies to invest in the country and strengthen its supply chain to support sustainable and profitable oil production.

However, major oil companies including US ExxonMobil and US ConocoPhillips have been cautious about returning to Venezuela, saying more work is needed to protect contracts and investments.