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Oil giant ExxonMobil left Venezuela years ago. Now it's considering a return
NPR • • business
Key Points:
- ExxonMobil has signed a memorandum of understanding with Venezuela and its state oil company PDVSA to explore potential oil exploration and production opportunities, marking a possible return after nearly 20 years.
- Venezuela recently reformed its petroleum laws to attract foreign investment by allowing more operational control for private companies and revising taxes and royalties, leading to expansion by U.S. firms like Chevron and Continental Resources.
- ExxonMobil remains cautious, emphasizing the need for stable policies, clear regulations, strong investment protections, and competitive returns before committing to future investments.
- The company left Venezuela in 2007 after nationalization of its assets by then-President Hugo Chávez and has since been involved in arbitration, with a U.S. court ordering Venezuela to pay ExxonMobil nearly $1 billion for expropriated assets.
- Analysts suggest ExxonMobil may target the Orinoco Belt for oil extraction, a region known for significant greenhouse gas emissions, particularly methane, which raises environmental concerns related to climate change.
