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Market Chatter: SLB, Formentera to Organize Fleet of Rigs for Venezuela

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Oil service company SLB (SLB) and private equity investor Formentera Partners are seeking to prepare a fleet of rigs for use in Venezuela in the coming months, potentially those already in place or by importing more, they said at the Venezuela Energy Week Houston conference, Reuters reported on Wednesday.

Formentera is talking with international oil service companies about sending their drilling rigs to the country, managing partner Blake London said. There were only two active rigs in the country at the end of July, according to industry service peer Baker Hughes, limiting production capacity to its current 1.25 million barrels per day, the article said, citing official figures.

Foreign oil service providers have come up against problems importing oil equipment, including difficulties with permits and ground transport, even as Venezuela's oil minister called at the conference for companies to invest in its oil industry and expand its supply chain.

SLB President for Mexico, Central America and Venezuela, William Antonio said his company will reactivate up to 15 of the oil rigs currently in Venezuela but that this will take months of preparation, with four likely to re-enter service this year.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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