SLB Plans Rig Reactivation to Boost Venezuela Oil Output

William Antonio, president of SLB’s operations for Mexico, Central America, and Venezuela, confirmed the company aims to have all 15 rigs operational within a year. Up to four of these assets could return to service before the end of 2026, contingent on final contracts with local producers. Parallel to this, private equity firm Formentera Partners is exploring the importation of additional drilling equipment to supplement the country’s limited capacity.

Increasing the active rig count remains critical for a nation currently producing roughly 1.25 million barrels per day. Chevron, a key operator in the region, anticipates a 50% increase in its own joint venture output by 2028, but such growth depends heavily on expanded drilling activity. Despite these plans, the sector faces persistent headwinds. Chronic infrastructure failures, unreliable power supply, and complex permit requirements continue to deter major players like ExxonMobil and ConocoPhillips, who remain wary of the local investment climate.