SLB Prepares to Restart 15 Oil Rigs in Venezuela

SLB Prepares to Restart 15 Oil Rigs in Venezuela

Thu, August 20, 2026 at 12:00 AM GMT+3 2 min read

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Oilfield services giant SLB is preparing to reactivate as many as 15 drilling rigs in Venezuela, potentially removing one of the biggest obstacles to increasing the country's crude production.

SLB and energy-focused private equity firm Formentera Partners are working on separate efforts to increase Venezuela's drilling capacity, executives said at an industry conference in Houston on Wednesday. Formentera is discussing importing rigs with international service companies, while SLB is focused on equipment already inside Venezuela.

SLB expects its 15 rigs in the country could all be working within a year, William Antonio, the company's president for Mexico, Central America and Venezuela operations, told Reuters. As many as four could return to service before the end of 2026, depending on contracts with producers.

The potential revival comes as Venezuela seeks to rebuild an oil industry that once produced more than 3 million barrels per day.

Despite holding the world's largest proven crude reserves, Venezuela had only two active onshore drilling rigs at the end of July, according to Baker Hughes data cited by Reuters. Current production capacity stands at around 1.25 million bpd.

More drilling will be essential if Venezuela is to achieve substantial further production growth. Chevron, already one of the most important foreign producers in the country, said last month that output from its three Venezuelan joint ventures had reached around 280,000 bpd. The U.S. supermajor expects that figure could increase by as much as 50% by the end of 2028.

Major obstacles remain. Oilfield companies continue to face difficulties importing and transporting specialized equipment, while power supply, infrastructure, permits and contractual protections could constrain investment.

ExxonMobil and ConocoPhillips have also remained cautious about returning, citing the need for stronger investment and contractual protections.

Still, the return of drilling equipment represents an important step. Without significantly more active rigs, Venezuela will struggle to offset declining wells and translate its enormous reserves into sustained production growth.

By Charles Kennedy for Oilprice.com

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