Halliburton Returns To Venezuela
Halliburton Signs Venezuela Energy Deals After U.S. Sanctions Lifted
Anonymous
Key Points
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Halliburton’s senior vice president for Latin America, Francisco Tarazona, said the company has “a long history in Venezuela” and wants to help advance development while supporting the country’s evolving energy sector.
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Halliburton said its nearly nine decades of experience in Venezuela, including established bases and local expertise, provide a foundation for advancing the new projects.
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Chief Executive Jeff Miller told investors in January that interest in Venezuelan business had surged, saying his phone was “ringing off the hook”; Halliburton had also retained a footprint in Venezuela that could help it scale operations after leaving in 2019.
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Exxon Mobil was reported to be nearing a preliminary agreement to explore investment opportunities in Venezuelan oil fields through a memorandum of understanding with state-run Petróleos de Venezuela.
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Halliburton shares closed down 2.14% at $32.93 on Sept. 21, extending a 10.32% decline over the previous 20 trading sessions, according to consolidated U.S. exchange data.
Halliburton is returning to Venezuela after a five-year absence, signing nonbinding agreements with Brazilian energy company Eneva and Venezuelan firm WESCA to develop oil and gas projects KHOU. The Houston-based oilfield services giant left the country in 2019 due to U.S. sanctions but is now moving back as American policy shifts to allow broader energy investment Simply Wall St. The deals signal a major reopening in the South American country, where Chevron and Exxon Mobil are also pursuing new opportunities.
Halliburton's chief executive told investors in January that interest in Venezuelan business had exploded, saying his phone was "ringing off the hook" Simply Wall St. The company retained a small footprint in Venezuela even after leaving, giving it an advantage to scale operations quickly Petroleum Australia.
Nearly Nine Decades of Venezuelan Expertise
Halliburton has worked in Venezuela since the 1930s, giving it deep roots in the country Simply Wall St. The company's senior vice president for Latin America, Francisco Tarazona, said Halliburton wants to "help advance development" while supporting Venezuela's energy sector KHOU. This long history includes established local bases and technical staff—assets that vanished competitors lost when they exited after 2019 Petroleum Australia.
Two Strategic Partnerships to Unlock Oil Fields
The Eneva agreement builds on an existing relationship the companies already have in Brazil Petroleum Australia. Eneva owns 9 million cubic meters of daily gas production capacity Click Petroleo e Gas. Meanwhile, the WESCA partnership focuses on evaluating and planning development of Venezuelan fields KHOU. Neither agreement disclosed financial terms, and both remain nonbinding at this stage.
Broader American Energy Push Into Venezuela
Halliburton is not alone. Exxon Mobil was reported to be nearing its own preliminary agreement with Venezuela's state oil company, Petróleos de Venezuela Simply Wall St. Continental Resources, an Oklahoma-based oil producer, has also pursued opportunities in the country Oklahoma Energy Today. The shift reflects U.S. policy changes that have eased restrictions on Venezuelan energy deals after years of strict sanctions.
Stock Declines Despite Strategic Opportunity
Despite the strategic win, Halliburton shares fell 2.14% to close at $32.93 on September 21 Simply Wall St. The stock has lost 10.32% over the previous 20 trading sessions, suggesting investors may have concerns about Venezuela's political stability or execution risks Simply Wall St. The nonbinding nature of the agreements means they could still fall apart before moving to formal partnerships.
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