Colombian oil industry groups say competition for equipment and technical personnel from Venezuela has intensified, reaching levels not seen in years.

Colombian oil producers are concerned about capital earmarked for the oil and natural gas sector flowing out of local projects and into Venezuelan fields, which have recently become accessible.

The situation has intensified competition for equipment and technical personnel, bringing it to levels not seen in years, according to industry participants cited by Argus.

With proven crude oil reserves approximately 150 times greater than Colombia’s, Venezuelan production has exceeded 1.2 million barrels per day in the months since January 3.

According to the Venezuelan government, more than 60 new energy agreements have been signed since then in order to increase production. This has turned Venezuela into an active buyer of oilfield services as the United States has eased sanctions, said Nelson Castañeda, president of the Colombian Chamber of Oilfield Services Companies (Campetrol), during the 9th Oil and Gas Summit held in Cartagena.

“Venezuela is positioning itself as a competitor in the demand for goods, services and capital to carry out its energy transformation,” Castañeda said. “We welcome the diversification of investment, but at the same time, we regret that we cannot retain those resources here.”

Venezuela: a challenge for Colombian operators

The rapid increase in operations in Venezuela represents an opportunity for Colombian services companies, but poses a major challenge for local operators seeking to maintain energy self-sufficiency, as they have to compete with Venezuela for capital, machinery and skilled labor, Castañeda said.

Venezuela is aiming to reach production of 1,370,000 barrels per day (b/d) by December 2026, up from the 1,200,000 million b/d forecast for December 2025, according to PDVSA data cited by Campetrol, an organization that led delegations of services companies to Caracas in April and Maracaibo in October.

Venezuela claims to have reserves of more than 303 billion barrels—approximately 149 times Colombia’s reserves—Castañeda said; however, these fields have not been verified in several decades.

The Bare block

Latin American producer Geopark is one example of this shift. The Bogotá-based company plans to reactivate between 300 and 400 wells in the Bare block in Venezuela before the end of the year, after signing a 25-year production-sharing contract (CCP) with PDVSA.

Geopark will invest around $6.8 billion in capital and operations in Venezuela, its CEO, Felipe Bayón, recently said.

Geopark will take operational control of the Bare block toward the end of 2026 and plans to begin drilling more than 100 new horizontal wells in 2028, with the goal of reaching peak production of 90,000 barrels of oil equivalent per day (boe/d) by 2038.

The company will also begin maintenance work on the block and rehabilitate existing infrastructure starting in 2027, Bayón told Argus on the sidelines of the conference.

“The contract terms are very good, with clear rules on how taxes work,” Bayon said.

“The 35% specified in the contract includes taxes, royalties and PDVSA’s share, which is absolutely fundamental.”

The labor shortage is making the situation worse. Colombian oil workers, who previously traveled to Argentina’s unconventional resource fields, are now heading to Venezuela, said Frank Pearl, president of the Colombian Petroleum Association.

“Capital is moving to Argentina, Guyana and Venezuela; equipment is moving too,” Pearl said. However, this flow to Venezuela may have its limits, as many large producers and other players continue to express concern about making significant investments in the country because of its uncertain political outlook.

“Analysts estimate that Venezuela’s infrastructure investment needs range from $50 billion to $100 billion,” said Adriana Erazo, an analyst at Fitch Ratings.

“Who would be willing to take on that risk? A much more stable legal, political and regulatory framework will be needed,” the analyst noted.

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