US oil companies lock in Venezuela deals
After months of slow progress and noncommittal MOUs, international oil companies are making tangible headway in Venezuela.
International oil companies are finally making headway in Venezuela, after months of slow progress and noncommittal memoranda of understanding (MOUs), according to Oil Minister Paula Henao. SLB, an oilfield service provider, announced it will provide AI software to streamline drilling operations and is working to import oil rigs into the country.
Texas-based oil producer Hunt Oil became one of the first companies to sign a production agreement with state-owned PDVSA, though the details of the deal were not disclosed. Further meetings between Venezuelan officials and US executives are expected following a recent event in Houston. The increased drilling in Venezuela is currently helping the US avoid the growing global fuel shortage, with half of Venezuela's oil output being exported to the US, said a senior US official.
However, the progress remains slow due to legislative uncertainty, the aftermath of two devastating earthquakes, and the logistical challenges of doing business in a country that frequently experiences hours-long blackouts.
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