EXCLUSIVE: Exxon assessing 7 areas in Venezuela for possible energy projects, sources say
ExxonMobil signed a memorandum of understanding with Venezuela's state oil company PDVSA on Monday in Caracas, allowing the U.S. producer to assess seven areas for potential development. The evaluation covers undeveloped fields, mature areas, and an exploration block. Interim President Delcy Rodriguez witnessed the signing. The move marks Exxon's first concrete step toward returning to Venezuela after the company exited in 2007 following asset nationalization and previously labeled the country "uninvestable."
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- ✓ ExxonMobil and PDVSA signed a memorandum of understanding on Monday in Caracas.
- ✓ The agreement allows Exxon to evaluate seven areas including undeveloped fields, mature areas, and an exploration block.
- ✓ Interim Venezuelan President Delcy Rodriguez was present at the signing.
- ✓ Exxon exited Venezuela in 2007 after its assets were nationalized.
What changed
ExxonMobil and PDVSA signed a preliminary agreement on Monday granting Exxon access to evaluate seven specific areas in Venezuela.
Live updates
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ExxonMobil signs MOU with PDVSA to evaluate seven Venezuelan energy areas
ExxonMobil signed a memorandum of understanding with Venezuela's state oil company PDVSA on Monday in Caracas, allowing the U.S. producer to assess seven areas for potential development. The evaluation covers undeveloped fields, mature areas, and an exploration block. Interim President Delcy Rodriguez witnessed the signing. The move marks Exxon's first concrete step toward returning to Venezuela after the company exited in 2007 following asset nationalization and previously labeled the country "uninvestable."
Why it matters
Exxon's departure in 2007 came after Hugo Chavez's government nationalized its Cerro Negro heavy-oil project. The current outreach follows the Biden administration's temporary sanctions relief in late 2023, which opened a window for major oil companies to negotiate. Any final investment would require explicit U.S. Treasury licenses and a stable fiscal framework from Caracas.
What is confirmed
- ExxonMobil and PDVSA signed a memorandum of understanding on Monday in Caracas.
- The agreement allows Exxon to evaluate seven areas including undeveloped fields, mature areas, and an exploration block.
- Interim Venezuelan President Delcy Rodriguez was present at the signing.
- Exxon exited Venezuela in 2007 after its assets were nationalized.
Still unconfirmed
- The seven areas may include offshore blocks in the Guyana-Suriname basin.
What to watch next
- U.S. Treasury issues specific licenses for Exxon to proceed beyond evaluation
- PDVSA and Exxon negotiate fiscal terms for any development contracts
- Venezuelan presidential election in 2024 and its impact on energy policy
confidence 92%Sources used for this update (7)
- WSJ — Exxon Takes First Step Toward Investing in Venezuela
- Financial Times — ExxonMobil explores return to Venezuela after calling nation ‘uninvestable’
- The New York Times — Exxon Strikes Preliminary Deal to Return to Venezuela
- NPR — Oil giant ExxonMobil left Venezuela years ago. Now it's considering a return
- Reuters — EXCLUSIVE: Exxon assessing 7 areas in Venezuela for possible energy projects, sources say
- sg.finance.yahoo.com — Exclusive-Exxon assessing 7 areas in Venezuela for possible energy projects, sources say
- malaysia.news.yahoo.com — Exclusive-Exxon assessing 7 areas in Venezuela for possible energy projects, sources say - Yahoo News Malaysia
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