The US Treasury’s OFAC issued a general licence authorizing US oilfield service firms to export drilling machinery, completion tools, production chemicals and related services to Venezuela, reversing field-specific prohibitions in place since November 2019. The licence runs through year-end and covers onshore and offshore upstream projects with PDVSA and joint ventures.

Venezuela’s oil output has languished below 800,000 barrels per day amid sanctions and underinvestment; industry models estimate that reinstated service flows could help recover several hundred thousand barrels per day within 12–18 months. The licence will enable rehabilitation of key heavy-oil fields in the Orinoco belt, where production has been hardest hit.

Schlumberger, as the world’s largest reservoir services provider, can now re-engage in well completions, hydraulic fracturing support, pressure pumping and maintenance programmes. Industry analysts see contract values potentially ranging in the low hundreds of millions of dollars annually if work programmes proceed on schedule.

Execution risks include currency repatriation controls, political uncertainty in Caracas and potential legal challenges related to PDVSA’s debt restructuring. Schlumberger must also navigate extended payment terms and local content requirements that could compress project margins.