US energy major ExxonMobil is in advanced discussions to acquire oil production rights in Venezuela, marking a corporate turnaround nearly two decades after being forced out of the South American nation, according to a report by The New York Times.
A deal could be finalised and announced as early as May, sources familiar with the matter told the publication. The proposed agreement would involve Exxon signing contracts to extract crude oil from up to six fields across several Venezuelan regions.
The unexpected negotiations follow a dramatic geopolitical shift earlier this year. In January, US forces captured and removed Venezuelan President Nicolas Maduro from office.
Following the regime change, US President Donald Trump actively pushed global energy corporations to heavily reinvest in the country, setting an investment target of US$100 billion to completely rebuild the nation’s crippled energy sector.
The potential deal represents a stark reversal for Exxon. Only months ago, in January, Exxon CEO Darren Woods publicly labelled Venezuela as an unattractive investment without the implementation of durable legal and commercial protections for new capital.
The blunt assessment reportedly landed Woods in hot water with President Trump, who has heavily prioritised opening the nation’s vast natural resources to American businesses.
Exxon did not immediately respond to requests for comment regarding the latest report.
The oil major famously exited Venezuela in 2007 after its extensive local assets were expropriated under the government of then President Hugo Chavez.
Breaking with many of its industry peers at the time, Exxon refused to negotiate a settlement, chose to completely abandon its operations, and subsequently launched a multi-billion-dollar legal battle in international arbitration courts.
If finalised, the new contract would hand Exxon a substantial footprint in one of the world’s most reserve-rich countries, signalling a new era for both the company and the global energy market.
