Colombian oil service firms move into Venezuela amid deal announcements, trade group says

Following the announcement of new exploration and production contracts and reactivation, Colombian oil service and goods firms are moving to Venezuela.

This move coincides with President Donald Trump's announcement that the United States has secured majority control of some 65 billion barrels in Venezuela's proven oil reserves through a partnership. Acting President Delcy Rodriquez said this deal would generate $209 billion dollars in tax revenue for Venezuela.

Nelson Castaneda is the head of Colombian industrial group Campetrol. He said that member companies were moving to Venezuela to make deals and to supplement the existing Venezuelan oil service sector's capacity.

Castaneda stated that "oil goods and services companies have an opportunity to complement the need to restore electrical and energy infrastructure to develop the 65 billion barrels?agreed to with the United States."

Sources say that after months of negotiation, U.S. companies Chevron, GE Vernova and ONGC are nearing the signing of final agreements in Venezuela.

Former President Gustavo Petro's administration, which recently left office, was responsible for the four-year absence of new contracts in Colombia's oil and gas industry.

* The President,?Abelardo de La Espriella? has said that he will?back industry by allowing for new contracts and fracking but has not yet announced any firm decisions.

(source: Reuters)