During the Venezuela Energy Week Houston Industry Showcase last month, SLB said it was working to reactivate up to 15 rigs already in Venezuela, with four potentially operational by the end of the year, subject to securing contracts with producers. Formentera is also in discussions with international oilfield service companies about importing additional drilling equipment.

The activity highlights a key feature of Venezuela’s production recovery: much of the near-term opportunity lies not in finding new resources, but in restoring wells, mature fields and the service capacity required to produce from them.

A Major Rig Gap

Venezuela is producing around 1.25 million barrels per day, but drilling activity remains severely constrained. Baker Hughes counted only two active onshore rigs at the end of July, limiting operators’ ability to increase production even as investment in existing assets gathers pace.

The gap between current activity and the country’s ambitions is substantial. Rystad Energy says Venezuela’s Oil Ministry has identified a requirement for 93 active drilling rigs by 2028, pointing to a significant expansion opportunity for drilling contractors and oilfield-service providers. Closing that gap will require a combination of reactivating rigs already in the country, refurbishing idle equipment and eventually importing additional units.

Venezuela also needs workover services, artificial-lift equipment, pumps, wellheads, valves, chemicals, compressors and other equipment required to restore and sustain production. Rystad estimates that production growth through 2028 will depend heavily on higher drilling activity, extensive workover campaigns, access to diluents and improvements to supporting infrastructure.

Brownfields Create Near-Term Opportunities

Rystad expects the majority of Venezuela’s production growth through 2028 to come from existing producing assets rather than large-scale new discoveries. That puts mature-field optimization, infill drilling and well reactivation at the center of the near-term opportunity.

For service companies, that creates a potentially faster route into the market than frontier exploration. Existing wellbores, field infrastructure and producing assets can provide a foundation for workovers and incremental drilling, although the condition of Venezuela’s infrastructure and the availability of equipment remain significant challenges.

Those challenges are already creating demand for companies able to mobilize equipment and technical expertise. Reuters reported in April that service companies were bringing stored rigs back into operation and assessing additional equipment for repair as producers advanced new projects and revised contracts. Transportation, permitting and infrastructure constraints, however, continue to complicate the mobilization of specialized equipment.

SLB is also building on a long-standing presence in the country. In July, the company said it had signed a long-term framework agreement with PDVSA covering exploration, field development, production, digital technologies and workforce development, providing a broader platform for its participation in Venezuela’s sector recovery.

The Services Market Behind the Oil Recovery

The emerging opportunity is less about a single wave of drilling than about rebuilding the ecosystem required to keep Venezuela’s mature fields producing. Drilling contractors, workover specialists, equipment manufacturers, artificial-lift providers, logistics companies and other oilfield-service firms will all have roles to play as operators seek to increase production from existing assets.

For investors, the opportunity is particularly compelling where companies can bring equipment, technology and operational expertise into a market with a large installed asset base but limited current service capacity. The challenge will be matching that opportunity with commercially viable contracts, reliable logistics and the operating conditions needed to sustain investment.

That services and reactivation opportunity will be a key focus at Venezuela Energy Week 2027, taking place in Caracas from February 22–25, as operators, investors and service companies assess how to turn the country’s existing production base into the next wave of growth.

Supporting Venezuela's Earthquake Recovery

Our thoughts are with the people and communities affected by the recent earthquakes in Venezuela. As the country begins the long process of recovery, we encourage members of the global energy community to support relief and reconstruction efforts through the CAF Recovery and Reconstruction Fund for Venezuela, which channels contributions from individuals, companies and organizations to emergency assistance, essential services and long-term rebuilding efforts.

To learn more or make a contribution, please visit the CAF Recovery and Reconstruction Fund for Venezuela.