ExxonMobil is negotiating to return to Venezuela’s Orinoco Belt, focusing on the Petromonagas heavy‑oil project where the company once held a 41.67% stake before the field was nationalized in 2007. Sources familiar with the discussions say the U.S. energy giant has dispatched technical teams this year to evaluate the oilfields and assess the condition of the existing upgrader.
Trump administration’s encouragement
The renewed interest aligns with President Trump’s clear directive for American companies to invest in Venezuela following the capture of President Nicolás Maduro in January. While Exxon’s CEO Darren Woods previously called the country “uninvestable,” the administration has signaled that U.S. firms should expand their presence while limiting access for companies from “adversaries” such as China and Russia.
Competing moves by other U.S. firms
Continental Resources, founded by billionaire Harold Hamm, recently signed a memorandum of understanding with Venezuela’s state oil company PDVSA to develop the Ayacucho 2 area in the same belt. Italy’s Eni and Chevron have also completed agreements to boost output in the country. In contrast, ConocoPhillips has stalled any re‑entry until it receives payment of roughly $11 billion it claims Venezuela owes from past expropriations.
Potential advantages for Exxon
Exxon executives argue the company’s experience with heavy‑oil extraction in Canada gives it a cost advantage in developing the Orinoco resources. Woods noted that the work done in Canada “positions us uniquely in terms of low‑cost production of the Venezuela resource.” The Petromonagas upgrader remains operational, though PDVSA documents indicate it will likely need significant maintenance after years of limited investment under U.S. sanctions.
Russian involvement and uncertainties
After Exxon’s 2007 exit, Russia’s Rosneft acquired a 40% stake in Petromonagas, later transferred to the state‑run Roszarubezhneft to shield assets from sanctions. Both the Venezuelan and Russian governments have confirmed Russia still holds a stake, though how this will affect any new deal remains unclear.
What’s next?
Exxon has not commented publicly, nor has PDVSA responded to requests for comment. The Wall Street Journal and Bloomberg reported earlier details of the negotiations. If the talks conclude successfully, Exxon would become the first major U.S. oil company to re‑enter Venezuela since the 2007 nationalizations, marking a significant shift in U.S. energy policy toward the country.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
