US EditionPublished • loading... • Updated
Oil Companies Begin Repairing Venezuelan Fields as Output Gains Remain Modest
Foreign and U.S. oil firms face logistical and technical challenges while aiming to boost Venezuela's output by up to 500,000 barrels per day within six months, sources say.
- Feb 19: Companies are refurbishing rigs, wells, and upgraders in Venezuela to boost production, with U.S. officials expecting a 'dramatic increase' in coming months.
- Venezuela's National Assembly in January approved reforms giving foreign companies more autonomy, amid legal and constitutional uncertainties, while the Orinoco Belt holds over 80% of reserves.
- The Alula rig's passage through Lake Maracaibo highlighted fragile local infrastructure after it struck a pipeline causing months-long crude leaks, while up to 14 stored rigs owned by SLB provide some drilling capacity amid diluent shortages.
- Competing companies are jostling for access to rigs, upgraders and ports, but industry workers warn the investment and visible disasters may deter some entrants; Chevron, U.S. oil major, remains committed and poised for early gains.
- Analysts say the repair job rivals post-war oil rehabilitations like Iraq or Kuwait, with calls for $100 billion investment amid risks from future U.S. governments and election non-recognition.
Insights by Ground AI
4 Articles
4 Articles
Oil companies jostle for projects to boost Venezuelan output quickly; a real grind awaits
In September, a rig used to drill wells in shallow waters completed the long trip from China to Venezuela's oil-producing region of Lake Maracaibo. The passage of the big old rig named Alula just inches below the bridge connecting Maracaibo city with the oilfields of the lake's eastern coast stirred excitement among residents and workers: they had not seen any new drilling equipment arrive for years due to U.S. sanctions.
·United Kingdom
Read Full ArticleCoverage Details
Total News Sources4
Leaning Left1Leaning Right0Center3Last UpdatedBias Distribution75% Center
Bias Distribution
- 75% of the sources are Center
75% Center
L 25%
C 75%
Factuality
To view factuality data please Upgrade to Premium
