Exxon assessing 7 areas in Venezuela for possible energy projects, sources say
XOM•Exxon is evaluating seven Venezuelan areas for potential development under a non-binding agreement with the government and PDVSA. It has exclusive rights for one year to negotiate terms and review data, with discussions focused mainly on the Orinoco Belt.
1. Seven areas under review
A preliminary agreement between Exxon, the Venezuelan government and state oil company PDVSA allows the US producer to evaluate seven areas, including undeveloped fields, mature areas and an exploration block. The memorandum of understanding was signed on Monday in Caracas.
2. Orinoco talks and terms
Discussions have mainly focused on heavy oil blocks in the Orinoco Belt, including Petromonagas, previously called Cerro Negro, where Exxon operated before its assets were expropriated in 2007. Exxon is also assessing three additional areas in the Orinoco and negotiating exploration rights at a separate block. The non-binding pact gives Exxon exclusive rights for one year to negotiate contract terms and review subsurface and other data.
3. Russian stakes unresolved
Russia's participation in Petromonagas and Petrovictoria remains an open question. Rosneft acquired a 40% stake in Petromonagas after Exxon's expropriation; that stake was transferred in 2020 to Roszarubezhneft. Exxon called the memorandum a “meaningful first step” and said any future investment would require stable policies, clear regulations, strong investment protections and competitive returns.
