Exxon (XOM) Eyes a Return to Venezuela After Nearly Two Decades Away

ExxonMobil is reportedly nearing a preliminary agreement with Venezuela's state-owned PDVSA, signaling a potential return to the country after nearly two decades of absence. The Wall Street Journal reported on September 16 that Exxon is showing interest in Petromonagas, a heavy oil project in the Orinoco Belt, as well as areas in the neighboring Carabobo block.

This move comes amid a broader push by the Trump administration to open Venezuela's oil industry to American companies and revive the country's dilapidated oil infrastructure. ExxonMobil's CEO Darren Woods previously stated that the country was "uninvestable" without durable investment protections, legal reforms, and changes to its hydrocarbon laws.

With Venezuela sitting on the world's largest proven crude oil reserves, the return could provide Exxon with access to a massive resource base at a time when the company is actively seeking low-cost and long-duration assets. However, the political uncertainty, regulatory risks, and execution challenges remain significant concerns for the company.

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