ExxonMobil Eyeing Six Venezuelan Oilfields After 1.179M BPD Output Surge
XOM•ExxonMobil CEO Darren Woods said Venezuela is uninvestable without major reforms after Caracas enacted early-2026 legislation rolling back Chavez-era nationalizations, removing PDVSA’s monopoly and cutting royalties and taxes. Following these reforms and U.S. sanction relief, Venezuela’s output rose to 1.179 million barrels per day in May 2026 (+3.8% MoM, +10.6% YoY), and Exxon is negotiating rights to six oilfields.
1. Venezuelan Reforms and Investment Climate
In January 2026, Venezuela’s government reversed most 2007 nationalization laws, removed PDVSA’s exclusive control over oil assets and reduced royalties and taxes. These changes enhanced legal protections for foreign companies, addressing ExxonMobil CEO Darren Woods’s concerns about investability.
2. Production Recovery and Output Figures
After U.S. sanction relief and regulatory overhaul, Venezuela reported 1.179 million barrels per day in May 2026, a 3.8% increase month-over-month and 10.6% rise year-over-year. This marks the highest monthly output in years and signals a robust rebound.
3. ExxonMobil Negotiations to Return
ExxonMobil is in talks to secure production rights for up to six Venezuelan oilfields, marking a potential re-entry after a nearly two-decade absence. CEO Woods had previously dismissed Venezuela as uninvestable without the newly enacted reforms.
4. Historical Expropriation and Strategic Context
In 2007, Venezuela expropriated Exxon’s $1.6 billion Cerro Negro heavy oil project, handing it to PDVSA. A successful re-entry would diversify Exxon’s portfolio beyond Guyana’s Stabroek Block and tap Venezuela’s 303 billion barrels of proven reserves.
