Brazil Bust Said to Spur Schlumberger to Boost Venezuela Staff

Cutbacks by Brazil’s state oil company has one of its main suppliers exporting local talent to an unlikely location: Venezuela.

Schlumberger Ltd. is increasing activity in the neighboring country even as it continues to trim its global workforce in response to weakening demand for its goods and services elsewhere, according to a person familiar with the moves who asked not to be named because the policy isn’t public. The world’s largest oilfield-services provider is also sending some Brazilian nationals to Saudi Arabia and Kuwait after Petroleo Brasileiro SA cut spending in an effort to reduce the biggest debt load in the oil industry, the person said.

The staffing shifts underscore Brazil’s decline as a destination for the oil industry. Companies including Schlumberger, Halliburton Co. and Baker Hughes Inc. invested heavily after tens of billions of barrels of crude oil were discovered in deep waters off the nation’s shores. The relocations also tell the story of Schlumberger’s commitment to Venezuela, home to the world’s largest oil reserves and a challenging place for energy companies to do business. While Baker Hughes and others have reduced activity in Venezuela amid unpaid bills, currency losses and rising crime, Schlumberger has stayed put.