ExxonMobil Signs Deal to Study Return to Venezuela

ExxonMobil is examining a return to Venezuela after nearly twenty years away. On Monday, the company announced it signed a memorandum of understanding with the Venezuelan government and its state-owned oil company, Petróleos de Venezuela, S.A.

The agreement is non-binding. It allows ExxonMobil to evaluate potential upstream opportunities, a term that refers to oil exploration and production. The company stated, "We welcome the opportunity to evaluate potential upstream opportunities with the Venezuelan government and PDVSA."

Venezuela changed its petroleum laws this year to attract international oil companies. The reforms grant private firms more operational control in partnerships. They also restructure taxes and royalties. Chevron and Continental Resources have expanded operations in the country since these legal changes.

ExxonMobil’s position has shifted since January. That month, President Donald Trump met with U.S. oil executives in the White House and urged them to invest in Venezuela. At the time, ExxonMobil Chief Executive Officer Darren Woods called the country "uninvestable."

Woods remained cautious on an earnings call with analysts last month. He said progress is being made on fiscal and legal regimes, as well as investor protections. "But there's a way to go," Woods said. The company’s statement added that any future investment would require stable policies, clear regulations, strong investment protections, and competitive returns.

ExxonMobil operated in Venezuela for much of the 20th century. The relationship deteriorated in 2004 when President Hugo Chávez renegotiated contracts and nationalized company assets. ExxonMobil left the country in 2007. In September 2025, a U.S. court ordered Venezuela to pay ExxonMobil more than $985 million for those expropriations.

Energy analysts say ExxonMobil may target oil fields in the Orinoco Belt. This region contains large oil reserves and is where the company previously operated. Paasha Mahdavi, a political science professor at UC Santa Barbara, noted that oil extraction in the Orinoco Belt generates high levels of methane, a potent greenhouse gas. ExxonMobil also holds large oil investments in neighboring Guyana, with which Venezuela has a territorial dispute over oil rights.