US Companies Seal Deals with PDVSA Amid Venezuela Oil Revival Plans

Venezuela's oil sector is gaining momentum as two US companies, SLB and Hunt Oil, have announced deals with state-owned PDVSA. These agreements are part of the United States' plans to revitalize Venezuela's oil industry, which has been hampered by underinvestment, mismanagement, and sanctions.

Venezuela is home to approximately 17 percent of the world's oil reserves, estimated at around 303 billion barrels. However, it currently supplies only one percent of the global oil supply due to decades of neglect and restrictions.

The US companies will provide services such as AI software for drilling and importing oil rigs. The deals come after interim president Delcy Rodríguez unveiled new regulations that offer more favorable fiscal terms to foreign oil companies. However, operations in Venezuela are challenging due to earthquakes, crumbling infrastructure, frequent blackouts, and limited capacity.

The US had initially hoped for a significant increase in production, but experts predict only incremental growth of 300,000 barrels per day over the next year. Currently, about half of Venezuela's oil output is sent to US refineries, with around 500,000 barrels per day already being exported.