Halliburton, TotalEnergies sign agreements to develop Venezuela’s oil sector

US-based oilfield service provider Halliburton announced the signing of an agreement with Brazil's Eneva and WESCA to support their efforts to develop oil and gas resources in Venezuela, it said Sept. 21.

Separately, France's TotalEnergies also signed an agreement with Venezuela's state-owned PDVSA to "establish a framework for strategic cooperation in the hydrocarbons sector," according to information broadcast by the state-run channel Venezolana de Television on Sept. 19.

Halliburton and Eneva will collaborate to identify and pursue development opportunities in Venezuela, the company said in a statement, noting that the agreement will build on an existing relationship between the two companies in Brazil. Under the agreement with WESCA, Halliburton will support field evaluation and development planning in Venezuela.

"The companies currently work together to advance reservoir understanding and support development decisions through digital technologies and subsurface interpretation," the Halliburton statement said.

Eneva and WESCA are both Brazilian companies, with the former being a leading natural gas operator on its home turf and the latter focused on developing heavy oil resources in the Orinoco and Maracaibo basins, according to their websites.

"These agreements highlight Halliburton's efforts to help customers unlock value from their assets through technology, collaboration, and execution excellence," Halliburton's Senior Vice President for Latin America, Francisco Tarazona, said in a statement.

WESCA's Venezuela interests

WESCA is leading the development of a Tier-1 greenfield asset, with the focus on large-scale drilling and systematic field development, the company said on its website, noting its project in the Orinoco Basin is designed to unlock heavy crude resources through an intensive horizontal drilling program, supported by the buildout of critical infrastructure and integrated field operations.

"As a fully integrated operator, WESCA manages the entire value chain, from exploration and asset development to drilling, midstream infrastructure, transportation, and the commercialization of production with international customers," it said.

WESCA also operated two fields in the Maracaibo Basin and reached a combined peak production of over 40,000 barrels/day, it said, adding it exited those facilities after five years of operations.

TotalEnergies re-enters Venezuela

Meanwhile, no details were available on the deal that Total signed with PDVSA. However, among the oil fields included in the agreement is Travi, a major light crude oil field located in the northern part of Monagas state, in eastern Venezuela, according to an official from the Ministry of Hydrocarbons, who spoke on condition of anonymity.

Unlike the extra-heavy crudes from the Orinoco Belt, the fields in northern Monagas—including Travi, Orocual, and Jusepin – produce light crude oil that is sent to local refineries and used as a diluent for extra-heavy crudes.

No details were disclosed on the financial terms, investment amount, and technical specifications during the signing ceremony in the capital, Caracas.

In 2021, TotalEnergies formally announced its withdrawal from the joint venture Petrocedeno, one of the most important extra-heavy crude oil projects in the Orinoco Belt. Along with TotalEnergies, the Norwegian company Equinor, which held a 9.67% stake in Petrocedeno, also withdrew from Venezuela.

The block operated by Petrocedeno in the Orinoco Belt is now part of the agreement signed between the US Departments of State and Defense and North American Blue Energy Partners in late August.