TLDR
- ExxonMobil is close to signing a memorandum of understanding with Venezuela’s state-run PDVSA to explore investments in several oil fields
- The deal could cover fields holding a combined 50 billion barrels of oil
- Exxon is interested in reclaiming two former Orinoco Belt fields, Petrovictoria and Petromonagas, plus two Carabobo region fields
- Rival Chevron signed a $7 billion Venezuela investment deal earlier this month, targeting 600,000 barrels per day
- Harold Hamm’s Continental Resources also signed a preliminary deal this week to explore a field in Anzoátegui
ExxonMobil (XOM) is nearing a preliminary agreement to re-enter Venezuela’s oil sector, nearly 20 years after leaving the country.
The company could sign a memorandum of understanding with state-run Petróleos de Venezuela (PDVSA) as soon as this month. The deal would allow Exxon to explore investments in both developed and undeveloped oil fields.
The fields under discussion collectively hold around 50 billion barrels of oil. Venezuela claims total reserves of roughly 300 billion barrels, which would rank it as the largest in the world.
Exxon is specifically interested in regaining control of two large fields it once held in the Orinoco Belt, Petrovictoria and Petromonagas. Those fields were nationalized in the mid-2000s under former President Hugo Chávez.
The company is also looking at securing rights to two additional fields in the nearby Carabobo region. Talks are ongoing and could extend beyond September or fall apart entirely.
Exxon has sent teams to Caracas this year as part of the negotiation process. The company was expected to continue those discussions at the G-20 Energy Abundance Ministerial in Houston this week.
The push is part of a broader effort by President Trump to encourage American oil producers to invest in Venezuela’s struggling oil sector. Venezuela’s oil infrastructure has deteriorated over years of underinvestment.
Chevron and Continental Already Moving
Exxon’s chief rival, Chevron, moved first. Earlier this month, Chevron signed a deal to invest $7 billion in Venezuela over five years through its existing joint ventures there. The goal is to double output to 600,000 barrels per day.
On Wednesday, billionaire Harold Hamm’s Continental Resources signed its own preliminary deal to explore an undeveloped oil field in the state of Anzoátegui.
Lingering Legal Risk
Several major oil and gas companies have been cautious about committing capital to Venezuela. The concern is the country’s history of nationalizing private assets, which creates long-term financial and legal risk.
Exxon and ConocoPhillips are both still seeking restitution for billions of dollars in losses following the 2007 nationalizations under Chávez. That history adds complexity to any new deal Exxon signs.
The potential MOU would be a first step, not a final agreement. It would allow both sides to explore deal terms before committing to a formal investment structure.
XOM shares were trading around $114 at the time of reporting.
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