Chevron and other U.S. energy companies are closing in on deals worth billions of dollars to develop Venezuelan oil fields, with Halliburton also in talks to supply oil-field services. This shift could bring new foreign workers and contractors into the country.
Executives from several oil-and-gas companies are expected to sign production agreements in Caracas very soon, with U.S. Energy Secretary Chris Wright reportedly traveling to Venezuela for the signing. Many of the fields on offer are “greenfields” lacking basic infrastructure or electricity, meaning developers will need to mobilize large project teams to build operations from scratch.
ExxonMobil and ConocoPhillips are staying on the sidelines for now, still pursuing restitution for assets nationalized in 2007, while Hunt Oil became the first U.S. firm to sign a Venezuelan production deal earlier this month.
IAM Member Impact: Large-scale greenfield development typically requires waves of expatriate engineers, project managers, and technical staff, along with their households, particularly in the early infrastructure-building phase.
Source: The Wall Street Journal