Oilfield services company SLB and private equity firm Formentera Partners are undertaking separate initiatives to expand Venezuela’s drilling infrastructure, according to remarks made by company executives at an industry conference in Houston this week. SLB’s efforts center on reactivating equipment already situated within the country, while Formentera is exploring the importation of additional rigs through international service providers.
William Antonio, SLB’s regional president overseeing Mexico, Central America and Venezuela operations, indicated that the company’s 15 rigs could be fully operational within a year, contingent upon agreements with production companies. The timeline suggests that approximately four of these rigs may resume operations before the end of 2026. Venezuela’s oil sector, which historically produced over 3 million barrels per day, has experienced significant contraction. As of late July, the nation had only two active onshore drilling rigs, with current production standing at roughly 1.25 million barrels per day, despite possessing the world’s largest proven crude reserves.
Chevron, a leading foreign producer in Venezuela, reported that its three joint ventures were generating approximately 280,000 barrels per day last month, with projections suggesting potential growth of up to 50 percent by the end of 2028. Expanding drilling capacity represents a critical necessity for achieving meaningful production increases across the country.
Challenges to expansion persist, including logistical constraints on importing and transporting specialized equipment, alongside concerns regarding power infrastructure, regulatory permits, and contractual safeguards. ExxonMobil and ConocoPhillips have adopted cautious positions, emphasizing requirements for enhanced investment protections and clearer contractual terms before recommitting resources. Nevertheless, industry observers regard the mobilization of additional drilling assets as a significant development, as Venezuela will require substantially more active rigs to manage well depletion and convert its substantial reserves into sustained output growth.
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