ExxonMobil inks preliminary deal to return to Venezuela after calling the country ‘uninvestable’

The biggest oil company in the world, ExxonMobil, took a first step toward a possible return to Venezuela — less than a year after calling the country “uninvestable.”

Exxon signed a preliminary agreement with the socialist country that would allow them to explore oil production opportunities with the state-run oil company, Petróleos de Venezuela – which has the largest oil reserves in the world. 

“This memorandum is a meaningful first step,” an Exxon spokesman said. “But any future investment would require stable policies, clear regulations, strong investment protections and competitive returns.” 

The agreement comes months after President Trump propped up an interim government in the country and pushed for more US oil investment. 

At the time, CEO Darren Woods called the country “uninvestable” back in January at a White House reception where Trump was trying to woo oil execs after having captured President Nicolás Maduro. 

The company left more than two decades after the South American country’s government took over foreign oil production in 2007.

“We’ve had our assets seized there twice. And so, you can imagine to re‑enter a third time would require some pretty significant changes from what we’ve historically seen here and what is currently the state,” Woods said in televised event at the White House earlier this year. 

The country’s interim president Delcy Rodríguez who now has a close relationship with Trump after being a Maduro loyalist for years signed a landmark package of oil reform bills this summer.

The new legislation in Venezuela gives private companies the majority control over oil production operations and puts Petróleos de Venezuela in the minority. US crude oil imports from Venezuela in July were at the highest since 2017, according to the US Energy Information Administration.

“We hope that Exxon’s investments take place under very favorable conditions for this internationally renowned company,” Rodríguez said, who once accused ExxonMobil of conspiring against Venezuela, according to BNamericas. “And that Venezuela can receive in return benefits for its national development, for its economic growth.” 

The Wall Street Journal reported in September that the company would be looking to close in on a preliminary deal. At the time the company was evaluating a deal that would include fields with more than 50 billion barrels of oil buried underground. 

In a recent earning call, Woods said the company was “not in a rush,” and sees Venezuela has a challenging resource, “We absolutely see a need for that resource at some point in the future, but it’s going to have to be produced and developed at a very competitive cost in order for it to compete on the world markets.”

Exxon’s largest competitor, Chevron, has been in Venezuela for more than a century while other rivals have left. The company is doubling down on their investment in the country with plans to double oil production over the next five years.