Exxon signs preliminary agreement with Venezuela to evaluate oil opportunities
XOM•ExxonMobil signed a non-binding agreement with Venezuela’s state-owned PDVSA to explore potential upstream opportunities. Any investment would require stable policies, clear regulations, strong protections and competitive returns, and a final contract would be needed to confirm participation.
1. Preliminary agreement
ExxonMobil said it signed a memorandum of understanding with PDVSA to evaluate potential oil exploration and production opportunities in Venezuela. The company did not disclose which projects or areas it was evaluating, and said a final joint-venture or production-sharing contract would be needed to confirm its participation.
2. Conditions and history
Exxon said any future investment would require stable policies, clear regulations, strong investment protections and competitive returns. The company left Venezuela nearly two decades ago after the government expropriated its assets, including interests in the Cerro Negro and La Ceiba projects. In 2014, an international arbitration body awarded Exxon $1.6 billion plus interest; Venezuela has challenged the award, and the matter remains pending.
3. Exxon weighs return
Exxon CEO Darren Woods said progress had been made on fiscal and legal terms, but that the company would take time to ensure a viable project could generate the returns required to compete in its portfolio.
