SLB Aims for Quick Response to Participate in Venezuela Reopening

Oil service firm SLB is planning a quick return to Venezuela's oilfields after the easing of US sanctions according to the CEO on Friday last week via Reuters.

• The easing of sanctions allows Venezuela to receive cash for crude and export to markets previously off limits in recent years.
• "We will be responding and, as fast as we can, mobilizing resources and equipment that are there to respond and participate to this reopening," said SLB CEO Olivier Le Peuch. He cautioned it was too soon to say how much SLB could achieve in short order.
• SLB is one of the few oil service companies with drilling rigs and specialized equipment in Venezuela which could speed up any new contract with PDVSA.
• A significant output increase is not expected from Venezuela in the coming six months with only one active drilling rig compared to more than 80 in 2014.
• "This new easing of sanctions can certainly be considered a positive move towards the recovery of the Venezuelan oil and gas sector," said Adrian Lara at Wood Mackenzie.
• "However, it does not guarantee a rapid or permanent recovery of production, given the required investment needed to deal with current infrastructure repairs and bottlenecks," he added.