Commodities January 26, 2026

Baker Hughes Sees Significant Revenue Potential in Venezuela, Cites Safety and Legal Hurdles

CEO outlines infrastructure and equipment investments needed as company evaluates programmatic return to Venezuelan oilfields

By Priya Menon
Baker Hughes Sees Significant Revenue Potential in Venezuela, Cites Safety and Legal Hurdles

Baker Hughes says Venezuela presents a sizable revenue opportunity for its oilfield services and industrial businesses, but operating there hinges on employee safety, legal and regulatory clarity, and substantial investment in well integrity, power and equipment. The company has maintained a presence supporting licensed producers and reported an 11% rise in adjusted profit for the fourth quarter.

Key Points

  • Baker Hughes identifies a sizable, programmatic revenue opportunity in Venezuela for its oilfield services and industrial energy technology divisions.
  • Material production increases in Venezuela would require major investments in well integrity, off-grid power, equipment replacement and upgrades, affecting capital spending and service demand in the oilfield services and energy equipment sectors.
  • Baker Hughes reported an 11% rise in adjusted fourth-quarter profit and guided 2026 revenue between $26.2 billion and $28.3 billion, with adjusted EBITDA expected between $4.6 billion and $5.2 billion.

Baker Hughes says Venezuela could generate meaningful revenue for its oilfield services and industrial technology businesses, but the company stressed that any expansion will depend on worker safety, secure operating conditions and clear legal and regulatory frameworks.

The Houston-headquartered oilfield services firm has been engaging with Venezuelan authorities following a U.S. action earlier this month that removed President Nicolas Maduro from power and called on oil companies to help rebuild the country’s dilapidated oil industry. Baker Hughes noted it had previously generated about half a billion dollars of revenue in Venezuela in 2012 and has maintained an ongoing presence, providing support to licensed oil producers in the country.

On an earnings call, CEO Lorenzo Simonelli framed the company’s approach as cautious and forward-looking. "We’re taking a prudent long-term view as we continue to evaluate opportunities and also the activity we have in the market," he said, underlining that any return to larger-scale operations will be phased and contingent on multiple factors.

Simonelli detailed the kinds of investment that would be required to lift production, saying moderate increases would demand substantial capital directed toward:

  • well integrity work,
  • off-grid power generation,
  • equipment replacement and upgrades, and
  • ongoing services and maintenance.

He added that a sharper rise in Venezuelan output would present opportunities not only on the oilfield services side but also across Baker Hughes’ industrial and energy technology business lines.

"The incremental opportunity of revenue is significant, and will be obviously programmatic as we go back, and there’s a lot of work in progress," Simonelli said.

Competitive peers have signalled similar conditional interest. SLB said last week it could quickly scale up activity in Venezuela provided that licensing, safety parameters and compliance measures are in place. Halliburton has indicated it would seek to re-enter the country once commercial and legal terms, including payment certainty, are resolved.

On the company’s financial results, Baker Hughes reported an 11% increase in adjusted profit for the fourth quarter. Looking ahead, the company provided guidance for 2026 revenue in a range between $26.2 billion and $28.3 billion - a midpoint that is below last year’s revenue of $27.7 billion. Adjusted earnings before interest, tax, depreciation and amortization are expected to fall between $4.6 billion and $5.2 billion, compared with $4.8 billion in 2025.

As Baker Hughes evaluates the Venezuelan opportunity, the company faces a mix of operational, legal and capital-allocation considerations. Any material expansion will likely be programmatic and dependent on progress across those fronts.

Risks

  • Safety and employee conditions in Venezuela must be addressed before significant on-the-ground operations can be expanded - a factor that directly impacts field services and contractor deployment.
  • Lack of clarity on legal and regulatory frameworks could delay or restrict commercial activity, affecting contractual certainty and market entry for oilfield services and equipment suppliers.
  • The opportunity is programmatic and contingent on substantial capital investment for infrastructure, which introduces execution and financing risks for companies planning to expand in the Venezuelan oil sector.

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