ExxonMobil Signs Preliminary Agreement to Explore Oil Production Opportunities in Venezuela After Nearly 20 Years

The agreement brings the biggest U.S. oil company a step closer to pumping oil again in Venezuela, nearly two decades after it left the country.]

· Preliminary Agreement: ExxonMobil, the largest US oil company, has reached a preliminary, non-binding agreement with Venezuela to evaluate potential oil production and investment opportunities, paving the way for its possible return after nearly two decades.

· End of Past Dispute: Exxon exited Venezuela in 2007 after the government changed the terms governing foreign oil companies and took control of its assets. The company has since sought compensation for the assets it lost.

· Investment Conditions: Exxon has stated that any future investment will depend on stable government policies, clear regulations, strong investment protections and competitive financial returns.

· Change in US Policy: The agreement represents progress towards US President Donald Trump's efforts to encourage American oil companies to invest in Venezuela's energy sector.

· Improved Investment Climate: Following the removal of former Venezuelan President Nicolás Maduro in January 2026, Venezuela introduced changes to its oil legislation to attract foreign investment.

· Higher Global Oil Prices: International oil prices have increased approximately 50% since January, partly due to the Iran conflict, making Venezuela's oil reserves more commercially attractive.

· Energy Security: The conflict has highlighted the importance of oil supplies from countries such as Venezuela, which are geographically distant from critical maritime chokepoints like the Strait of Hormuz.

· Strategic Interest in Guyana: Exxon also has significant oil production interests in neighbouring Guyana. Improving relations with Venezuela could help address uncertainties arising from the territorial and maritime boundary dispute between the two countries.

· Investment Still Uncertain: Despite the preliminary agreement, Exxon CEO Darren Woods has emphasised that substantial reforms are still required before the company can commit significant capital to Venezuela.

[ABS News Service/10.11.2026]

Exxon Mobil, the biggest U.S. oil company, said on Monday that it reached a preliminary deal with Venezuela that brings it a step closer to returning to the South American country.

The agreement gives Exxon time to evaluate oil production opportunities, and is not binding — stipulations similar to those in other agreements struck by U.S. oil companies this year as they consider investing in Venezuela.

Nevertheless, it is a symbolic win for President Trump, who has been pressing U.S. oil companies to invest in Venezuela. It also represents a normalization of relations between Exxon and Caracas, which deteriorated after the country’s socialist government in 2007 changed the terms under which foreign oil companies operated there. Exxon left rather than accept the new rules, and has long sought compensation for the assets it relinquished.

Exxon, in a statement about the deal, said that “any future investment would require stable policies, clear regulations, strong investment protections and competitive returns.”

Such arrangements, known as memorandums of understanding, are common in the oil industry, where companies often negotiate exclusive rights to perform tests or complete detailed reviews before committing to projects that might cost billions of dollars and last for many years.

Nevertheless, it marks a remarkable turnaround from January, when Darren Woods, Exxon’s chief executive, called Venezuela “uninvestable.”

“We’ve had our assets seized there twice, and so you can imagine to re-enter a third time would require some pretty significant changes,” Mr. Woods said at a televised White House meeting that Mr. Trump hosted days after U.S. forces captured Venezuela’s leader, Nicolás Maduro.

The oil market looks much different than it did then. For one, oil prices have climbed around 50 percent since January, largely because of the war with Iran. That conflict has also highlighted the value of producing oil in countries like Venezuela that are far from maritime choke points like the Strait of Hormuz.

Plus, in the wake of Mr. Maduro’s seizure, Venezuela overhauled legislation to make the country more attractive to foreign oil companies.

“We absolutely see a need for that resource at some point in the future,” Mr. Woods said about Venezuela on the company’s third-quarter earnings call last month. “Ultimately we’ll have a role. But like I said earlier, it’s going to require some substantial changes to the way things have historically been done in Venezuela.”

For all of the progress that Venezuela has made, “there is a way to go,” Mr. Woods added.

Exxon has a unique interest in smoothing its relationship with Delcy Rodríguez, Mr. Maduro’s successor, because of the company’s position in neighboring Guyana. Oil production off the shores of the former British colony is a major growth engine for Exxon, but the company’s future there has been clouded by a territorial dispute with Venezuela. Negotiations over the maritime border between Venezuela and Guyana are expected to begin after the United Nations’ top judicial body rules on the land border between the countries, most likely by early next year.