According to Reuters and Bloomberg reports citing sources familiar with the matter, ExxonMobil is advancing an agreement that would allow the company to re-enter Venezuela’s oil industry after nearly twenty years. The energy giant is negotiating a memorandum of understanding with state-owned PDVSA to explore potential investment across several major oil fields in Venezuela’s Orinoco Belt.
The talks are focused on developed and undeveloped assets, including the extensive Petromonagas heavy oil project and parts of the neighboring Carabobo block. These fields together represent significant resource potential, with an estimated 50 billion barrels of oil reserves under discussion. If completed, the deal would mark ExxonMobil’s return after its exit in 2007, which followed the Chávez government’s nationalization of oil assets and related disputes.
ExxonMobil’s interest in Venezuela comes amid broader moves by U.S. oil companies to re-enter the country. This shift follows U.S. President Donald Trump’s call for renewed American investment in Venezuela’s petroleum sector after policy changes earlier this year, including the detention of former president Nicolás Maduro.
In recent months, ExxonMobil has deployed technical teams to assess the state of Venezuelan oil infrastructure. Meanwhile, other international firms have moved forward: Continental Resources recently signed an agreement with PDVSA to operate the Ayacucho 2 area, and both Chevron and Italy’s Eni have secured deals to expand existing projects in Venezuela.
Petromonagas, which ExxonMobil previously operated under the name Cerro Negro, stands out for its operational upgrader, enabling the processing of Venezuela’s extra-heavy crude into lighter grades suitable for export.
The Trump administration has emphasized efforts to enhance the role of American companies in the Venezuelan energy sector, while seeking to curb the influence of firms based in countries considered U.S. adversaries, such as China and Russia.
Should ExxonMobil finalize its return, the company would face considerable work to restore and upgrade petroleum infrastructure, which has endured years of underinvestment and U.S. sanctions. However, executives believe the company’s experience in heavy oil production could offer a cost advantage as operations in Venezuela resume.
