Exxon Mobil nears preliminary deal to invest in Venezuela oil fields
A memorandum of understanding with state-run PDVSA could be signed as soon as this month, the Wall Street Journal reports.
Published
Chart: XOM, one-minute prices, three sessions
Exxon Mobil is nearing a preliminary agreement to invest in Venezuela's oil fields, with a memorandum of understanding with state-run PDVSA potentially signed as soon as this month, the Wall Street Journal reports.
The move would follow a loosening of US sanctions policy. Treasury's Office of Foreign Assets Control amended a Venezuela general license, dropping provisions tied to Russia and to narcotics. Energy Secretary Chris Wright had said a US oil company was set to discuss investment in Venezuela on the day the change was made.
Other companies have moved in the same direction. Chevron has committed $7 billion over five years to Venezuela, and Continental plans to disclose the terms of its own Venezuela oil arrangement now that sanctions rules have eased.
Exxon's talks fit that broader pattern of major oil companies committing to Venezuela as Washington's regulatory stance softens. Whether it meaningfully adds to global oil supply depends on execution risk and infrastructure constraints that remain substantial. The move is constructive for US energy security goals, but it does not shift near-term market dynamics.