SLB, Formentera working to activate drilling rigs in Venezuela, executives say

Venezuela presents a major opportunity, but significant challenges remain, including constraints on power supply and the supply chain in the country, said David Reed, executive vice president of Americas at service provider Weatherford.

"Legislation, contracts, permits and everything else. These are all going to create bottlenecks that the industry is going to have to fix relatively quickly if we're going to keep up the momentum," he said. "Hopefully, we get past that relatively quickly."

SLB expects to reactivate up to 15 oil rigs that are currently in Venezuela, said William Antonio, SLB's president of Mexico, Central America and Venezuela operations, adding that small workover rigs are expected to be deployed first.

"I'm sure these rigs will be fully busy in less than a year," he said.

Antonio told Reuters that up to four of the rigs are expected to be reactivated this year, depending on the signing of contracts with oil producers. In about two years, Venezuela's crude production will be higher, he said. "Question is how sustainable it will be," considering the need for diluents and infrastructure challenges, he said.