Oil Firms Reactivate Stored Rigs in Venezuela
Service companies are repairing at least nine rigs for deployment as the government reviews oil contracts. The move aims to boost production to 1.37 million bpd.
Oilfield service providers in Venezuela have begun extracting drilling rigs and specialized machinery from long-term storage, signaling a potential resurgence in the nation's energy sector. This movement comes as the government undergoes a comprehensive review of oil and gas contracts, a process expected to conclude by the end of July. The overhaul has already sparked preliminary agreements for asset swaps and block awards, encouraging firms to prepare their hardware for onshore deployment.
At least nine rigs, ranging from 500 to 1,500 horsepower, have been removed from warehouses for assembly and maintenance. Another five units are currently undergoing assessment. These assets have largely been idle since the United States imposed heavy sanctions on the energy sector in 2019, which severely restricted the operations of major American service firms.
