Exxon Mobil nears preliminary Venezuela oil deal with PDVSA

Exxon is close to a preliminary agreement to invest in Venezuela's oil fields, the Wall Street Journal reports. Continental Resources also plans to disclose details of its own Venezuela oil deal.

Exxon Mobil is nearing a preliminary deal to invest in Venezuela's oil fields, according to the Wall Street Journal. A memorandum of understanding with state oil company PDVSA could be signed as soon as this month.

The talks add Exxon to a list of companies moving into Venezuela, alongside Chevron, Eni and Continental Resources.

Continental Resources, controlled by Harold Hamm, plans to disclose details of an oil deal in Venezuela. The announcement follows an amended license from the US Treasury's Office of Foreign Assets Control that changes what companies are permitted to do in Venezuela. The same amendment also dropped separate sanctions designations tied to Russia and to counter-narcotics enforcement.

Energy Secretary Chris Wright said a US oil company was set to discuss investment in Venezuela on the day the amended license was reported.

Continental's move adds another operator to the Venezuela oil push already underway with Chevron and Eni. It reinforces the administration's strategy of raising Venezuelan output as a supply buffer against disruptions in the Middle East and tensions with Iran.