Oilfield services group SLB is poised to secure some of the first contracts under U.S. President Donald Trump’s plan to revive Venezuela’s struggling oil industry, drawing on its decades-long footprint in the country and close ties with Chevron, according to people familiar with the discussions. The Financial Times reported that SLB is in talks with U.S. officials, Chevron and other potential customers about expanding its operations as Washington seeks to rebuild Venezuela’s oil sector after the capture of former leader Nicolás Maduro earlier this month.
Investors have already moved to price in the opportunity. SLB’s shares have risen 14 per cent this year, outperforming rivals and reflecting market expectations that oilfield services companies will be among the biggest beneficiaries of the U.S. push to channel as much as $100bn into Venezuela’s dilapidated energy infrastructure. Chevron, the only U.S. oil producer still operating in the country, has seen its stock rise 5 per cent, while Halliburton and Baker Hughes have gained 10 per cent and 4 per cent respectively.
As the world’s largest oilfield services company, SLB carries out much of the operational work underpinning oil and gas production, from drilling wells to installing infrastructure, while also providing advanced technologies essential for complex projects. Its ability to deploy both equipment and expertise quickly has made it an attractive partner as Washington seeks to encourage investment and restore output in Venezuela, once a major oil producer.
The Financial Times noted that SLB’s position is strengthened by its reputation for maintaining operations in politically sensitive markets. Headquartered in Houston but legally incorporated in Curaçao, SLB has more flexibility than its U.S.-based rivals to operate under sanctions regimes. It maintained a presence in Venezuela through years of U.S. sanctions, expropriations under Hugo Chávez and Nicolás Maduro, and the exit of many competitors. Although the company downsized in 2016 and wrote down nearly $1bn in assets a year later, it continued to support Chevron’s operations and retained significant equipment and staff on the ground.
Industry analysts say that history could give SLB an early advantage. James West of Melius Research told the Financial Times that companies already operating in a country during political upheaval are often best placed to secure initial contracts once conditions improve. SLB currently holds a licence to work with Venezuela’s state-owned oil company PDVSA until May 2025, but most of its activity flows through Chevron’s licence, negotiated with the Trump administration.
At a White House meeting with industry executives last week, SLB chief executive Olivier Le Peuch said the company was already expanding its footprint in Venezuela with Chevron’s support. He said SLB had hundreds of millions of dollars’ worth of equipment in the country and was ready to scale operations quickly as opportunities emerge.
Rivals, however, are preparing to re-enter the market. Baker Hughes has retained a limited presence to support Chevron, while Halliburton exited Venezuela in 2019 but has said it could return rapidly if sanctions are eased. U.S. Treasury Secretary Scott Bessent indicated at the weekend that sanctions relief could come as soon as this week, potentially opening the door for more competition. Halliburton’s chief executive Jeff Miller told the Financial Times that re-entry would largely depend on securing regulatory approval, which he expects could be expedited.
SLB’s potential advantage also lies in its technical knowledge of Venezuela’s oilfields. Analysts say the company’s digital tools and artificial lift technology, strengthened by its acquisition of ChampionX, could be critical in reviving ageing fields where natural pressure is no longer sufficient to bring oil to the surface.
Despite the optimism, uncertainties remain. Major oil companies such as ExxonMobil have expressed doubts about committing large sums without clear legal and financial guarantees from Washington. Analysts also note that oilfield services companies face constraints of their own, with low capital spending and pressure from investors to maintain discipline potentially limiting how quickly they can redeploy equipment and labour to Venezuela.
