Exxon nearing deal to invest in Venezuela oil

By the Editorial Team · Friday, September 18, 2026

ExxonMobil is close to signing a preliminary agreement with Venezuela's state oil company to invest in multiple oilfields, marking a potential return nearly 20 years after its exit. This deal, supported by recent regulatory reforms and U.S. government encouragement, could significantly boost crude production in a country with the world's largest oil reserves despite ongoing investment risks.

ExxonMobil is nearing a preliminary agreement to invest in several oilfields in Venezuela, marking a potential return to the country nearly two decades after its exit. The U.S. oil company is in advanced discussions to sign a memorandum of understanding with state-owned Petroleos de Venezuela as early as this month, according to sources familiar with the negotiations. However, the talks could extend beyond September or fail to reach a conclusion.

The potential deal could cover both developed and undeveloped fields with an estimated 50 billion barrels of oil resources, according to one source. Venezuela claims to possess roughly 300 billion barrels of oil reserves, the largest globally.

ExxonMobil has sent teams to Caracas during 2026 amid encouragement from U.S. President Donald Trump and other officials to revitalize Venezuela’s depleted oil industry. President Trump, Secretary of State Marco Rubio, and other policymakers have sought to bolster Western Hemisphere energy production by encouraging American companies to invest up to $100 billion in Venezuela. The aim is to increase crude output and supply U.S. refineries.

Exxon’s closest competitor, Chevron, recently signed a $7 billion investment agreement to expand its Venezuelan operations through joint ventures, targeting production of 600,000 barrels per day over five years. Likewise, billionaire oil entrepreneur Harold Hamm entered a preliminary agreement this week to develop an undeveloped oilfield in the Anzoátegui state.

Despite these movements, many international oil companies remain cautious about investing in Venezuela due to the country’s history of nationalizing private assets and presenting financial and legal risks. ExxonMobil and ConocoPhillips continue to seek compensation for billions of dollars in losses after the government of former President Hugo Chávez nationalized their assets in 2007.

In a January White House meeting with President Trump, Exxon CEO Darren Woods expressed skepticism about Venezuela’s investment climate, describing it as “uninvestable” without substantial reforms to the legal framework, commercial regulations, and hydrocarbon laws. Since then, Venezuela has amended its oil sector regulations, including offering lower tax rates on production to attract investors.

Continental Resources, another company moving forward with investments, cited these regulatory and legal reforms as influential factors in its decision to engage with Venezuela’s oil sector. ExxonMobil’s ongoing negotiations reflect a broader push to reengage with a country seeking to revive its vital but troubled petroleum industry.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.