After months of slow progress and noncommittal MOUs, international oil companies are making tangible headway in Venezuela.
Oil Minister Paula Henao announced deals with two US firms this week. Oilfield service provider SLB will provide AI software to facilitate drilling, and said it is working to import oil rigs into the country. And Texas producer Hunt Oil became one of the first to sign a production agreement with state-owned PDVSA; a spokesperson declined to comment on details of the deal.
Others are expected after meetings in Houston this week between Venezuelan officials and US executives, Politico reported. More drilling in the country is already helping the US shield itself from the mounting global fuel shortage: Half of Venezuela’s oil output is being exported to the US, a senior US official said.
Still, oil industry progress remains slow because of legislative uncertainty, the aftermath of two devastating earthquakes, and the basic logistics of doing business: Parts of the country are facing frequent hours-long blackouts.