ExxonMobil Nears Deal to Return to Venezuela After Nearly Two Decades
ExxonMobil is reportedly close to finalizing an agreement with Petróleos de Venezuela, S.A. (PDVSA) to explore and potentially invest in oil fields within the Orinoco Belt—its first major move back into Venezuela since its assets were nationalized in 2007. The deal would involve a memorandum of understanding but remains subject to change or delay before September. While the potential access includes an estimated 50 billion barrels of oil, these are geological estimates and not yet booked reserves or production figures. The market has largely remained indifferent, with ExxonMobil's stock trading near $163.54 as investors focus on its strong performance in Guyana and the Permian Basin. The company reported robust second-quarter results, including record free cash flow of $17 billion driven by high oil prices and refining margins amid ongoing geopolitical tensions affecting supply. ExxonMobil's CFO emphasized that any new venture must meet strict financial criteria to justify investment. A return to Venezuela would offer strategic resource access but also reintroduce significant political risk due to the country’s history of expropriation.
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Topics: ExxonMobil international investment oil exploration Venezuela