Oil giant ExxonMobil left Venezuela years ago. Now it's considering a return
ExxonMobil has signed a non-binding memorandum of understanding to explore potential oil production opportunities in Venezuela. This move follows recent changes to Venezuelan petroleum laws aimed at attracting foreign investment after years of sanctions and instability.
Why it matters
It signals a potential shift in global energy markets and U.S.-Venezuela economic relations as the country attempts to revitalize its oil sector.
ExxonMobil, the biggest U.S. oil company, is exploring a return to Venezuela after leaving almost two decades ago.
On Monday, the company announced it had signed a memorandum of understanding with the Venezuelan government and its state-owned oil company, Petróleos de Venezuela, S.A. The MOU, which is typically a non-binding agreement, involves ExxonMobil examining potential "upstream opportunities" – that refers to oil exploration and production.
ExxonMobil said in a statement, "We welcome the opportunity to evaluate potential upstream opportunities with the Venezuelan government and PDVSA."
A lot has happened in Venezuela's oil sector in the past ten months. In January, shortly after the Trump administration captured Venezuelan president Nicolás Maduro, Trump gathered U.S. oil company executives in the White House and urged them to invest in the country. At that time, ExxonMobil CEO Darren Woods said the country was "uninvestable."
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