Oilfield services provider Halliburton Co. said April 24 it would cease most of its operations in Venezuela after the U.S. Treasury Department imposed tight new regulations on oil and gas companies doing business in the South American nation.
Seeking to increase pressure on socialist President Nicolas Maduro, the U.S. Treasury late on April 21 imposed restrictions on Chevron Corp.'s joint ventures with Venezuelan state-run oil company PDVSA.
The new restrictions effectively told Chevron, Halliburton, Schlumberger Ltd. and others to wind down their activity in Venezuela by December.
The new restrictions under a license that allowed Chevron and Halliburton to conduct business in the country include a ban on drilling, transporting oil or providing any equipment for use in Venezuela.
Both Chevron and Halliburton had already halted many activities and Halliburton said the decision will not have a material impact on its financial condition.
The company said in a regulatory filing it is unlikely that its remaining assets in Venezuela could be removed from the country and it may have to dispose them.
The career oil and gas man has put his money on U.S. natural gas via Comstock Resources Inc. and the Haynesville Shale.
The midstream sector may prove to be the energy industry’s best story in this black swan event as the global oil and gas business scrambles to respond to 2020’s unexpected shocks.
‘The time for building and quickly flipping assets is gone,’ says Siemens executive, stressing the importance of keeping operational costs down.