Venezuela Private Oil Rig Ops May Drop on Nationalist Risk

Venezuela’s threats to “nationalize” 18 oil rigs currently operated by outside firms sent a shock wave through the local oil services industry at a time these services are in high demand around the globe.

Executives at drilling firms said foreign rig operators could easily try and move equipment to other markets if the business environment worsens, hurting the country’s ability to produce oil.


At the same time, Venezuela may be forced to lean on foreign oil service firms to keep the oil flowing until it follows through on plans to begin assembling rigs in country to help spawn a domestic oil services industry.

That means Venezuela may exempt from its nationalization drive some oil service company activities on which the country depends.

Dow Jones Newswires