Exxon Mobil is reportedly nearing an agreement to resume oil production operations in Venezuela, nearly 20 years after being effectively forced out of the country. The largest U.S. energy company is in discussions to secure rights to develop up to six oil fields across various regions of Venezuela, according to individuals familiar with the matter who spoke on condition of anonymity.
If finalized, the deal would represent a significant win for the administration of former President Donald Trump, who had sought to open Venezuela’s vast oil reserves to American businesses following the removal of Nicolás Maduro from power. The arrangement would mark Exxon’s return to Venezuela after a prolonged legal and political conflict with the Socialist Party government.
Exxon’s exit from Venezuela dates back to 2007, when President Hugo Chávez nationalized foreign oil operations—actions that included expropriation of Exxon’s assets. Unlike other oil companies, Exxon refused to negotiate and subsequently pursued arbitration in international courts, ultimately securing approximately $1 billion in damages. Since then, Exxon shifted its investments to neighboring Guyana, developing major offshore oil fields in a region also claimed by Venezuela, and became a frequent target of Maduro’s criticisms.
Despite earlier assertions by Exxon’s CEO Darren Woods that Venezuela remained “uninvestable” due to historic expropriations and political risks, the company’s stance appears to have softened in recent months. In a January meeting shortly after Maduro’s removal, Woods described Venezuela as a major business risk, citing the company’s past asset seizures. However, in a recent earnings call, he expressed optimism about Venezuela’s potential, highlighting Exxon’s expertise with ultra-heavy crude oil similar to Venezuelan reserves and noting promising investment returns.
Several factors have contributed to the renewed interest. Heightened geopolitical tensions in the Middle East and increased oil prices have prompted energy companies to diversify supply sources. Additionally, last month Chevron announced an expansion of its largest Venezuelan oil field, a move analysts suggest may have pressured Exxon to reconsider its position to remain competitive in the region.
Venezuela’s interim government, led by Vice President Delcy Rodríguez following Maduro’s ousting, has pursued a more investor-friendly approach to the country’s oil sector, including revisions to oil law intended to attract private capital. Rodríguez’s administration views Exxon’s return as a critical component of its strategy to rebuild energy ties with the United States and draw foreign investment.
Sources indicate that Exxon has prioritized a substantial entry into Venezuela rather than incremental projects, with company personnel conducting field evaluations in Caracas as recently as April. The exact terms of the prospective agreement remain unclear, including whether it would entail binding commitments or signal Exxon’s expression of interest pending final contract structures.
Neither Exxon nor Venezuelan officials have publicly commented on the ongoing negotiations. The deal, if completed, could be announced soon, potentially marking a turning point in U.S.-Venezuelan energy relations after decades of adversarial policies and legal disputes.