The recovery of Venezuela oil industry it will depend on heavy investments in fields, drilling, specialized services and infrastructure.
Venezuela’s oil recovery could require more than US$100 billion in investments as the country seeks to increase its crude oil production and rebuild an infrastructure that needs significant work to sustain growth over the next few years.
Currently, Venezuelan production is around 1.25 million barrels per day (bpd) in one of the scenarios proposed by Rystad Energy, pumping could reach close to 1.6 million bpd in 2028 advance to 1.8 million bpd in 2030 and position themselves around 2.58 million bpd in 2035.
Reaching those levels, however, will require much more than reactivating wells, it will be necessary to attract capital, incorporate drilling equipment, recover specialized services, and expand the processing, storage, and transportation infrastructure needed to handle heavy crude.
US$100 billion to revive Venezuela oil industry
North American Blue Energy Partners (NABEP) it has become one of the key players involved in the new development plans. The company is considering operations in 17 oil fields, whose proven reserves are estimated at approximately 65 billion barrels.
The plans associated with NABEP contemplate financing needs that could reach US$100 billion to develop oil infrastructure over a prolonged period.
Rystad Energy warns that this figure should be understood as a need for long-term financing and not as capital already committed for immediate disbursement.
The difference is important for determining the actual speed of recovery Venezuelan oil company the country may have enormous underground resources, but converting them into commercial production will depend on the effective arrival of capital and the technical capacity to execute the projects.
Venezuela will need to increase its number of drilling rigs
One of the main challenges will be drilling, according to Baker Hughes data cited in industry analyses, Venezuela had barely two active drills in August.
To follow the production trajectory proposed by Rystad Energy, activity would have to increase to approximately 50 operational drilling rigs in 2028 and get closer to 80 units by 2030.
Growth of this magnitude does not only consist of bringing more equipment to the fields, it will also be necessary to recover specialized crews, oil services, maintenance, logistics, and the capacity to drill new wells and rehabilitate existing facilities.
In this scenario, mature fields could represent one of the fastest ways to increase production, Lake Maracaibo it appears as a relevant area for recovering volumes during the early stages, while the development of new blocks will require considerably longer timeframes.
Chevron, Eni and Continental Resources expand their plans
Several international companies are also involved in new projects and agreements within the Venezuelan oil sector.
Chevron it includes investments exceeding US$7 billion over five yearsand has increased the production it manages in Venezuela.
For their part, Continental Resources announced a memorandum of understanding with PDVSA related to Ayacucho 2 in the Orinoco Belt. The bloc has approximately 30 billion barrels of oil in place.
One it is also advancing on Junín-5, an asset with around 35 billion barrels certified in situ in addition, international oilfield services providers such as Halliburton y SLB, linked to opportunities to recover operational and drilling activity.
Infrastructure will be key to increasing production
In the short term, rehabilitating existing wells and increasing production from mature fields can yield faster results. Sustaining that growth over the next decade, however, will require much larger investments in surface facilities, processing, storage, and transportation.
Venezuelan heavy crude also requires specific infrastructure for its handling and marketing, increasing the number of wells without simultaneously upgrading the facilities that receive, process, and transport that production could become a bottleneck.
Completely new projects will face even longer timelines, block assessment, well drilling, and facility construction can take years before translating into significant production volumes.
For this reason, the pace of Venezuela oil recovery will depend not only on the size of the announced investments, but also on the capital that actually reaches the projects and the capacity to simultaneously rebuild drilling, oil services, and the infrastructure necessary to convert the country’s enormous reserves into marketable barrels.
Source: Oil Price
Photo: Shutterstock
