Exxon Mobil said on Monday it reached a preliminary, non‑binding agreement with Venezuela that brings the biggest U.S. oil company a step closer to returning to the South American nation. The deal gives Exxon time to evaluate oil production opportunities and follows the pattern of memorandums of understanding used by U.S. oil firms this year. It is a symbolic victory for President Trump, who has pressed American companies to invest in Venezuela. The accord also normalizes relations between Exxon and Caracas after the 2007 nationalization that forced the company to leave.
The turnaround is highlighted by Darren Woods, Exxon’s chief executive, who labeled Venezuela “uninvestable” in January after two asset seizures. Oil prices have climbed roughly 50 percent since then, driven by the Iran war and the strategic value of producing oil far from maritime choke points. Venezuela has overhauled its legal framework to attract foreign drillers, and Woods said the resource will be needed “at some point in the future,” though substantial policy changes remain required.
Exxon’s interest in smoother ties with Delcy Rodríguez, Mr. Maduro’s successor, is tied to its Guyana operations, where a territorial dispute with Venezuela threatens growth. Negotiations on the maritime border are expected after a UN ruling early next year.
Source: New York Times Top Stories · Summarized by HeadlinesBriefing