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Venezuela has the world's second highest oil reserves, behind Saudi Arabia. But under socialist/communist dictator Hugo Chavez, oil production is in a steady decline, from 3.18 m bpd is 1997 to 2.36m bpd in 2008.

As the socialzed sectors of the Venezualan economy continue to fail. Chavez is attempting to make up by stealing still productive operations run by the private sector.

Venezuela's state owned oil company PDVSA is the beneficiary of the latest thefts, in this case of oil service operations. The result will be a further decline in production as PDVSA lacks the ability to operate as efficiently as the service providers it is stealing from.

Source.