Oilfield services company Haliburton (NYSE:HAL) says it expects to make a quick return to Venezuela, with company CEO Jeff Miller saying the company could be active in the South American country in a matter of months. Halliburton aims to help rebuild the nation’s dilapidated oil and gas infrastructure, and has downplayed the risk of responding to U.S. President Donald Trump’s call for $100 billion in investments.
Jeff Miller told Energy Source that Haliburton’s business model means that it does not face the same kind of risk as E&P operators, which need to invest large amounts of capital over long periods before enjoying a return on their investment. However, Miller has acknowledged that some form of non-government-backed assurance to ensure service providers were paid by Venezuela’s state oil company, Petróleos de Venezuela (PDVSA) would boost confidence in Western operators. Miller has proposed using proceeds from the sale of 50 million barrels of Venezuelan oil to provide the industry with assurances.
“Obviously, we want stability and we have to be paid for our services. But the idea that we’re putting assets in the ground that stay there 20 years [isn’t the case]. Our assets move around, they can be moved out of countries, into countries. Very different profile to an oil and gas operator,’’ Miller said. ‘‘I would think some assurance of payment from PDVSA in order to get to work would be another thing that could be solved and can see a path to that solution. But I don’t see it as US government dollars paying for anything,” he added.
That makes Halliburton a likely early mover if Venezuela reopens, even as operators stay cautious. Service companies can step in, get paid, and step back out long before the country’s deeper structural problems are solved.
By Charles Kennedy for Oilprice.com
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