Exxon Mobil has signaled a return to Venezuela after a 19-year absence, months after CEO Darren Woods previously called the nation "uninvestable." The US oil giant signed a memorandum of understanding with the Venezuelan government and state oil company PDVSA to evaluate upstream opportunities. This marks a significant policy shift, as Exxon exited the country nearly two decades ago. The move comes as Washington increases control over Venezuela's energy sector following the capture of President Nicolás Maduro. President Donald Trump has encouraged producers to expand operations, viewing Venezuela's vast energy resources as key to a US-led sphere of influence.
Exxon's initial skepticism stemmed from Maduro's capture and concerns over legal stability. In January, Woods emphasized the need for "durable investment protections" and changes to hydrocarbon laws. Earlier this year, Venezuela's National Assembly passed a hydrocarbons law opening the sector to private companies, ending a quarter-century of state dominance. During the Q3 results call, Woods cautioned against "exuberance," noting progress on fiscal and legal regimes but acknowledging "a way to go" for investor protections. While Exxon remains cautious, other companies like Chevron have deepened presence, announcing a $7 billion plan to double production. Eni and General Electric also secured deals. The Rodriguez-led government has opened resources to US investment, including a deal granting the Pentagon a 35% stake in a key oil company.
Source: Financial Times Companies · Summarized by HeadlinesBriefing