Full Breakdown
ExxonMobil Negotiates Return to Venezuela’s Orinoco Belt
By Drooid · · How we work
Core Development: Talks to Re-Enter Venezuelan Heavy-Oil Fields
On September 16, ExxonMobil announced that it is in advanced negotiations with Venezuela’s state oil company PDVSA to regain access to the Petromonagas heavy-oil project in the Orinoco Belt and to explore additional acreage in the neighboring Carabobo block. The company has dispatched technical teams earlier this year to evaluate the fields and is weighing the potential to leverage its Canadian heavy-oil expertise.
Background & Context
ExxonMobil exited Venezuela in 2007 after the government of former President Hugo Chávez nationalized its Cerro Negro (Petromonagas) assets. The move was part of a broader wave of expropriations that also affected ConocoPhillips and other U.S. firms. Since then, rivals such as Chevron, Italy’s Eni and Continental Resources have signed agreements to develop Venezuelan fields after U.S. President Donald Trump urged American companies to invest following the 2013 capture of then-president Nicolás Maduro.
Data & Statistics
- Venezuela holds the world’s largest proven oil reserves, the bulk of which are located in the Orinoco Belt.
- Exxon previously owned a 41.67 % stake in Petromonagas before nationalization.
- The Petromonagas upgrader, the only operational facility capable of converting extra-heavy crude to lighter grades, is currently in service but likely requires major maintenance after years of under-investment.
- ConocoPhillips is seeking repayment of roughly $11 billion it claims is owed by PDVSA for assets expropriated in 2007.
Official Statements & Responses
She emphasized that any new partnership with Exxon would have to coexist with existing Chinese and Russian joint ventures.
A former PDVSA executive, citing internal documents, noted that the Petromonagas upgrader will likely need extensive repairs to resume export-grade production, as it has primarily been used to supply feedstock for domestic refineries under sanctions.
Verbatim Quotes
- “You can imagine to re-enter a third time would require some pretty significant changes,” — Darren Woods, CEO
What's Next
U.S. officials have indicated that the Trump administration will continue to encourage American oil firms to pursue Venezuelan projects, though the durability of any fiscal or regulatory reforms remains uncertain. ExxonMobil has not confirmed a timeline for a final agreement, and further negotiations are expected to address payment terms for previously expropriated assets.