SLB eyes Venezuela ramp-up as only active international service firm in the country

SLB is positioning to rapidly expand its Venezuela operations as the only international oilfield service company currently active in the country, potentially reshaping service provision in one of the world's largest oil reserves as sanctions ease and investment conditions improve.

The company has historically serviced PDVSA, Venezuela's state oil company, and has received multiple customer inquiries about expanded services, CEO Olivier Lapush said during an earnings call Jan. 23. SLB's existing position could give it an edge in capturing market share as international firms consider re-entering Venezuela's oil sector, which holds the world's largest proven crude reserves at over 300 billion barrels.

"We are excited and we are already receiving a lot of inquiries from our customers," Lapush said. "Assuming that the conditions are set for investment to resume and to accelerate not only from the customer that we are serving today, but from new customers reentering or entering the country."

SLB's Venezuela readiness stems from maintaining operations during years of sanctions that drove out most international service companies. The company has kept active facilities, equipment and local personnel in the country.

At its peak about a decade ago, SLB employed more than 3,000 people in Venezuela and generated over $1 billion in annual revenue from the country, Lapush said during the call. The company was historically the largest service technology supplier to PDVSA and maintained the leading subsurface digital capabilities in the market.

Currently, SLB has significant assets ready for deployment, including drilling services equipment, more than 10 production sets, and rigs available for mobilization. The company's workforce includes about 80 Venezuelan nationals already in-country, over 1,000 Venezuelan employees globally, and access to nearly 2,000 Venezuelan alumni ready to return.

"Long term, under the right conditions, we can be the leading partner for customers there," he said.