ExxonMobil Nears Preliminary Deal to Return to Venezuela’s Oil Fields

ExxonMobil is reportedly nearing a preliminary agreement to explore new investments in Venezuela’s oil industry, potentially marking the U.S. energy giant’s return to the country nearly two decades after it left following the nationalization of its oil assets.

According to The Wall Street Journal, ExxonMobil could sign a memorandum of understanding with Venezuela’s state-run oil company, Petróleos de Venezuela (PDVSA), as soon as September. The proposed agreement would cover investments in several developed and undeveloped oil fields.

However, the negotiations are not final. People familiar with the discussions told the Journal that the talks could still collapse or extend beyond September.

ExxonMobil’s Potential Return to Venezuela

A return to Venezuela would represent a major change for ExxonMobil.

The company left the country after Venezuela nationalized its Cerro Negro oil project in 2007. ExxonMobil had previously held a 41.67% interest in the project, which was subsequently taken over by PDVSA.

Nearly 20 years later, ExxonMobil is once again examining opportunities in one of the world's most important oil regions.

Reuters reported that Exxon has shown interest in the Petromonagas heavy-oil project in Venezuela’s Orinoco Belt, as well as potential opportunities in the neighboring Carabobo area. Petromonagas was previously associated with Exxon’s operations in the country.

The potential deal would therefore not simply represent a new investment. It could mark a significant strategic re-entry into a market ExxonMobil once exited under highly contentious circumstances.

Why Venezuela Matters to ExxonMobil

Venezuela possesses enormous petroleum resources, with much of the country's oil concentrated in the Orinoco Belt.

The challenge is that much of Venezuela's crude is extremely heavy and requires specialized technology, infrastructure and processing facilities.

That could create an opportunity for ExxonMobil.

Reuters reported that Exxon executives believe the company's experience producing heavy oil in Canada could give it an advantage if it returns to Venezuela. Exxon CEO Darren Woods previously pointed to the company's Canadian operations as relevant to developing Venezuela's heavy-oil resources.

The Petromonagas project is particularly significant because its existing upgrader can process Venezuela's extra-heavy crude into lighter grades that are easier to export.

But the infrastructure also needs investment.

Reuters reported that Petromonagas could require maintenance and major repairs after years of inadequate investment and operating constraints.

Venezuela Is Trying to Attract Foreign Oil Investment

ExxonMobil's negotiations come during a broader effort to bring international capital and expertise back into Venezuela's petroleum industry.

Other energy companies have also been pursuing opportunities in the country.

Reuters reported that Chevron and Italy's Eni recently completed agreements to expand projects and increase oil production, while Continental Resources signed a memorandum of understanding covering the Ayacucho 2 area in the Orinoco Belt.

Continental's agreement illustrates the scale of the resources being targeted. Reuters reported that Ayacucho 2 could contain an estimated 30 billion barrels of oil resources in place.

The emerging investment activity suggests that Venezuela is attempting to rebuild its petroleum sector through partnerships with foreign companies rather than relying exclusively on PDVSA.

A Very Different Venezuela Oil Market

The potential ExxonMobil return comes amid a major transformation in Venezuela's energy sector.

The U.S. government has encouraged American companies to participate in rebuilding Venezuela's oil industry, while Washington has also established a broader framework involving Venezuelan oil assets and U.S. participation.

The White House said in September that the U.S. had secured majority control involving more than 65 billion barrels of proven Venezuelan oil reserves through a private Venezuelan oil company. The administration described the arrangement as part of a broader effort to increase production and attract investment.

That broader environment could make Venezuela more attractive to major international oil companies.

At the same time, the history of nationalization remains an important consideration for investors.

ExxonMobil's previous departure demonstrates the potential political and legal risks involved in committing capital to Venezuela's energy sector.

What the Exxon Deal Could Mean for Global Oil Markets

If ExxonMobil ultimately reaches a final investment agreement, the implications could extend beyond Venezuela.

Additional investment could help increase Venezuelan crude production over time. That would potentially add supply to global oil markets, although the timing and scale would depend heavily on infrastructure, investment levels, operational efficiency and the condition of existing fields.

Venezuela's enormous oil resources do not automatically translate into immediate production.

Heavy crude projects can require significant capital, specialized equipment, upgraded processing facilities and reliable transportation infrastructure.

That means any increase in Venezuelan production would likely take time.

For global energy markets, however, even the prospect of additional Venezuelan production is significant.

The possibility of increased supply is particularly relevant at a time when geopolitical disruptions have created greater uncertainty around oil prices and global energy security.

ExxonMobil Faces Both Opportunity and Risk

For ExxonMobil, Venezuela could offer access to some of the world's largest remaining petroleum resources.

But the opportunity comes with substantial risks.

The company's previous experience in Venezuela is an important part of the story. ExxonMobil's assets were nationalized after negotiations over changes to the country's oil industry failed, leading the company to leave the country.

A return would therefore require ExxonMobil to evaluate the legal, political and financial protections available under the current framework.

The company would also need to determine whether potential production can generate attractive returns after accounting for the enormous infrastructure requirements associated with Venezuela's heavy crude.

The Deal Is Not Yet Final

One of the most important details for investors and energy-market observers is that ExxonMobil has not yet finalized the reported investment agreement.

The Wall Street Journal reported that the company could sign a memorandum of understanding with PDVSA, but the negotiations could still fall apart or extend beyond September.

Reuters likewise described the discussions as negotiations rather than a completed investment deal.

That distinction matters.

A memorandum of understanding would generally represent a preliminary step toward a potential investment rather than confirmation that ExxonMobil has committed billions of dollars to Venezuelan oil production.

The next stage will be watching whether the two sides formally announce an agreement and, if so, what fields, investment levels, ownership structures and operating rights are included.

Why ExxonMobil and Venezuela Are Being Watched Closely

The potential ExxonMobil-Venezuela deal brings together several major global energy trends: the search for new oil supplies, Venezuela's attempt to rebuild its petroleum industry, U.S. involvement in Venezuelan energy, and the return of major international oil companies to a market that has been largely isolated from Western investment.

For ExxonMobil, the negotiations could eventually provide access to significant heavy-oil resources.

For Venezuela, attracting ExxonMobil back could provide capital, technology and operational expertise at a time when the country's oil industry is attempting to recover.

For global energy markets, the bigger question is whether foreign investment can eventually translate Venezuela's enormous underground reserves into sustained additional production.

For now, the answer remains uncertain.

But after almost two decades away, ExxonMobil's potential return to Venezuela could become one of the most closely watched developments in the global oil industry.

🔎 Key Takeaways

• ExxonMobil is reportedly nearing a preliminary agreement to explore investments in Venezuelan oil fields.
• The company could sign a memorandum of understanding with PDVSA as soon as September.
• ExxonMobil left Venezuela nearly 20 years ago after the nationalization of its oil assets.
• Reuters reports that Exxon is considering the Petromonagas heavy-oil project and opportunities in the Carabobo area.
• Venezuela is seeking foreign investment to rebuild and increase oil production.
• Any increase in Venezuelan production would likely require substantial investment in infrastructure and oil-processing capacity.
• The reported Exxon agreement is not yet final.

❓ FAQ: ExxonMobil and Venezuela Oil

Is ExxonMobil returning to Venezuela?
ExxonMobil is negotiating a potential return to Venezuela, but no final investment agreement has been announced. A preliminary memorandum of understanding could be signed as soon as September.

Why did ExxonMobil leave Venezuela?
ExxonMobil left after Venezuela nationalized its Cerro Negro oil project in 2007. The company had held a 41.67% interest in the project.

Which Venezuelan oil projects is Exxon considering?
Reuters reported that Exxon is interested in the Petromonagas heavy-oil project in the Orinoco Belt and opportunities in the Carabobo area.

Could ExxonMobil's return increase global oil supply?
Potentially, but any meaningful production increase would likely require substantial investment, repairs and infrastructure development. The timing and eventual production level remain uncertain.

Has ExxonMobil finalized the Venezuela investment?
No. Current reporting describes the negotiations as preliminary, and the talks could still change, extend beyond September or fail to produce a final agreement.

⚠️ Editor's Note

This article is based on reporting available September 17, 2026. The ExxonMobil-Venezuela arrangement remains preliminary and should not be treated as a completed investment transaction.

Sources: The Wall Street Journal — Exxon Is Nearing a Preliminary Deal to Invest in Venezuela’s Oil Fields · Reuters — Exxon advances talks to return to Venezuela’s Orinoco Belt