Colombian oil service firms move into Venezuela as deals near

Colombian oil service and goods companies are moving into Venezuela to take part in the sector's reactivation, following announcements of new exploration and production contracts, according to a trade group leader.

Nelson Castaneda, head of the Colombian industry group Campetrol, said member companies are already making deals to complement the existing capacity of Venezuela's oil services sector. He described the development as an opportunity to help restore electrical and energy infrastructure needed to develop the 65 billion barrels of proven reserves covered by an agreement with the United States.

The move follows an announcement by former U.S. President Donald Trump that Washington had secured majority control over Venezuela's proven oil reserves through a partnership with private companies. Acting President Delcy Rodriguez said the deal would generate $209 billion in tax revenue for Venezuela.

Sources said U.S. firms Chevron and GE Vernova, India's ONGC, Italy's Eni, and Colombia's GeoPark are close to signing final agreements in Venezuela after months of negotiations.

Colombia's oil and gas industry went four years without new exploration contracts under former President Gustavo Petro, who recently left office. Current President Abelardo De La Espriella has expressed support for the industry, including allowing new contracts and fracking, but has not yet announced firm decisions.