Business · Companies · 6 hrs ago

ExxonMobil signs preliminary agreement to explore oil opportunities in Venezuela

ExxonMobil signs preliminary agreement to explore oil opportunities in Venezuela

ExxonMobil has signed a preliminary, non-binding agreement with Venezuela’s state oil company PDVSA to assess possible oil exploration and production opportunities.

The discussions could bring the US oil company back to Venezuela, nearly two decades after it left when the government took over its assets.

Exxon has not said which projects or oil areas it is considering.

The company says stable policies, clear regulations and strong investment protections would be needed before it invests.

Venezuela recently changed its oil law to allow new participants, and Exxon’s chief executive has said conditions have improved.

The agreement itself does not authorize oil production; a final contract would be needed for Exxon to take part in exploration or production.

Exxon says it is moving step by step and has no immediate timetable for committing to a project.

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What people are saying

ExxonMobilCompany statement
This memorandum constitutes a significant first step; however, any future investment would require stable policies, clear regulations, strong investment protections and competitive returns
via El Economista MX
Darren WoodsExxon chief executive
uninvestable
via Bloomberg
Before committing, we will ensure those conditions are in place and that we are confident we have a viable and sustainable project capable of generating the returns needed to compete within our investment portfolio
via El Economista MX
I expect this to take time; therefore, we are moving step by step. We are in no rush
via El Economista MX