Oilfield services company SLB (SLB) is talking with Trump administration officials, Chevron (CVX) and other potential customers about expanding in Venezuela, part of President Trump’s plan to revive Venezuela’s crippled oil industry, Financial Times reported Wednesday.
SLB (SLB) has the longest and largest presence of any oilfield services operator in Venezuela, after navigating U.S. sanctions and expropriations that led rivals to exit the country; while the company downsized its presence in 2016 and took a $983M impairment a year later, it remained a major service provider to Chevron (CVX), the only U.S. oil producer still operating in Venezuela.
While SLB (SLB) has a licence to operate with Venezuela’s state-owned oil company PDVSA until May 2025, the bulk of its work is through Chevron’s licence, according to the report.
Investors see SLB (SLB) and other oil services companies as best positioned to benefit from Trump’s effort to cajole operators to invest $100B to rebuild Venezuela’s oil sector, and SLB shares have jumped 14% since U.S. forces captured Venezuela’s former leader Maduro on January 3; Chevron (CVX) has gained 5%, while rival oilfield services companies Halliburton (HAL) and Baker Hughes (BKR) have added 10% and 4%, respectively.
Baker Hughes (BKR) has some employees in Venezuela to support power and gas services for
Chevron (CVX), but significantly reduced its presence when U.S. sanctions were tightened in 2019, and Halliburton (HAL) left Venezuela that year but told FT it could move quickly to re-enter the country.