SLB Set to Boost Operations in Venezuela

• SLB CEO stated the company is 'already receiving a lot of inquiries from customers' but expansion requires proper licensing, payment terms, and operating licenses to be established
• Rival Halliburton similarly announced plans to return to Venezuela once commercial and legal terms, including payment certainty, are resolved
• SLB maintains active facilities, equipment, and local personnel in Venezuela, currently delivering services under an oil major's license, while Chevron produces 240,000 barrels per day through joint ventures with state oil company PDVSA

Summary: SLB Set to Boost Operations in Venezuela

Key Developments:

Oilfield services giant SLB announced Friday it can rapidly scale up operations in Venezuela following appropriate licensing and compliance approvals. The company participated in White House discussions about potential investments after the U.S. ousted President Nicolas Maduro in early January.

Company Statements:

CEO Olivier Le Peuch confirmed during a post-earnings call that SLB is receiving numerous customer inquiries, contingent on securing proper licensing, payment terms, and operating permits. The Houston-based firm emphasized it is currently the only international service company actively operating in Venezuela, providing services under an oil major's license while maintaining facilities, equipment, and local personnel.

Competitive Landscape:

Rival Halliburton also met with the White House and expressed interest in expanding Venezuelan operations once commercial and legal frameworks, including payment certainty, are established. Both companies view licensing as imminent.

Market Context:

Chevron remains the sole U.S. oil major producing crude in Venezuela, operating joint ventures with state oil company PDVSA that yield approximately 240,000 barrels per day. The renewed interest in Venezuelan operations follows political changes and potential easing of operational restrictions.

Financial Performance:

SLB reported better-than-expected earnings on Friday, though specific figures were not detailed in the article.

Implications:

The political transition in Venezuela could unlock significant opportunities for oilfield service providers, potentially increasing production capacity in a country with substantial oil reserves. However, success depends on establishing clear regulatory frameworks and payment mechanisms.