Newly Formed U.S. Company to Help Venezuela Shore Up Production

[BlackTortoise + 103]

With brand-name drillers unwilling to jump in, Venezuela is resorting to a newly formed U.S. company for help in shoring up production from its crude reserves, the largest in the world.

An agreement with U.S.-based Erepla Services LLC, created in 2018, to boost production at the Tia Juana and Rosa Mediano and Ayacucho 5 fields in exchange for half the oil produced. Erepla will supply rigs and crews in the onshore fields for 25 years, with an option to extend for another 15 years, according to the contract.

[JoMack + 547]

Good luck with that!  Shoring up Venezuela's crude oil reserves will be one expensive endeavor.  Oh, and plenty of talent to put Venezuela's oil infrastructure ready for any increase in production.

 

[Brent Hamrick + 31]

Erepla Services LLC, part-owned by Republican Harry Sargeant III and which Delaware state records show was only registered two months ago, said it plans to invest up to $500 million to increase production at three Venezuelan oil fields in exchange for a portion of the crude produced.

Odd.