The Trump administration is in discussions with the world’s biggest oilfield service providers and major crude oil producers such as Chevron (CVX) to quickly increase output in Venezuela with limited investment, Bloomberg reported on Saturday.
The talks are aimed at achieving output recovery at a fraction of the estimated $100B cost required for a complete rebuilding, according to a senior administration official who sought anonymity, as plans are internal
The idea is to boost oil output by several hundred thousand barrels in the short term with only a limited investment in the South American country.
Earlier this month, Venezuelan leader Nicolás Maduro was captured by American security forces after a daring pre-dawn strike. Days later, Trump called on more than 20 energy companies to invest in the South American country, where decades of underinvestment and neglect have left existing infrastructure in bad shape.
Under the administration’s latest plans, oilfield services companies, including SLB (SLB), Baker Hughes (BKR), and Halliburton (HAL), would initially focus on repairing or replacing damaged or outdated equipment and revitalizing older drilling operations.
A representative for Halliburton (HAL) said the company’s goal “is to achieve quick wins and generate immediate production recovery.” SLB (SLB) didn’t immediately respond to Bloomberg’s requests for comments, while Baker Hughes (BKR) refused to comment.
Chevron (CVX) remains prepared to help Venezuela “build a better future while strengthening US energy and regional security,” the company said in a statement.