The U.S. is in talks with Chevron and major oilfield service companies on plans to quickly revive oil production in Venezuela through targeted repairs and equipment upgrades, rather than a full-scale industry rebuild, according to senior administration officials.
Under the approach, service providers including SLB, Halliburton and Baker Hughes would focus initially on repairing damaged infrastructure, rehabilitating older wells and replacing outdated equipment. Officials said those measures could lift Venezuela’s crude output by several hundred thousand barrels per day in the near term with limited capital investment.
The strategy aligns with the Trump administration’s goal of rapidly increasing crude supply following the January removal of former President Nicolás Maduro, while generating cash to support longer-term reconstruction. Venezuela currently produces less than 1 million bpd, far below its historical peak of nearly 4 million bpd in the 1970s.
“There’s some low-hanging fruit that you could probably squeeze some life out of once again,” said Tom Liskey, head of Latin America research at Enverus.
Chevron plans to initially leverage existing infrastructure in its joint ventures with state-owned Petróleos de Venezuela SA (PDVSA), Vice Chairman Mark Nelson said earlier this month. The company expects to raise production from its Venezuelan operations by about 50% over the next 18 to 24 months, up from roughly 240,000 bpd today.
Oilfield service companies have signaled readiness to return quickly if U.S. approvals are granted. Halliburton CEO Jeff Miller said the company could mobilize within weeks, while Baker Hughes CEO Lorenzo Simonelli noted the firm has the largest installed base of artificial lift and rotating equipment in the country.
In the near term, activity would likely center on workovers, artificial lift repairs and power generation upgrades at existing fields, rather than new drilling. Analysts say longer-term development — including new wells and reservoir expansion — would require sustained political stability, regulatory reform and significant investment.
Despite Venezuela’s vast reserves, decades of underinvestment, environmental liabilities and deteriorated infrastructure remain major hurdles. Industry leaders have also raised concerns over worker safety and payment security, and U.S. officials have indicated they do not plan to provide on-the-ground security guarantees.
Still, service companies view Venezuela as a potentially significant market as U.S. shale activity slows. Citi estimates that a return to historic activity levels could eventually support billions of dollars annually in drilling, completion and production services.
Reporting by Jennifer A. Dlouhy and David Wethe, Bloomberg. Edited for length.
