PomegraExxon to Evaluate 7 Venezuela Oil Areas in Preliminary Deal
Why did Exxon sign a deal with Venezuela?
Exxon (XOM) stock rose 1.4% to $166.71 on Wednesday as the company signed a preliminary Venezuela oil deal on Monday to study seven areas, nearly two decades after losing its assets there.
Key numbers
| Areas under review | 7Incl. 1 exploration block |
|---|---|
| Exclusive negotiation period | 1 yearNon-binding memorandum |
| Court award vs Venezuela (Sept 2025) | $985M+For past expropriations |
| Exxon share price (per [4]) | $166.71+1.36% on Wednesday |
| Exxon stock YTD (per [4]) | +36.7%-7.3% over the past week |
What happened
Exxon (XOM) stock rose 1.4% to $166.71 on Wednesday as the company signed a preliminary Venezuela oil deal on Monday to study seven areas, nearly two decades after losing its assets there. The non-binding agreement (a memorandum of understanding) was signed with Venezuela's government and state oil company PDVSA, and it gives Exxon one year of exclusive talks and data access. The areas include the Petromonagas and Petrovictoria fields, three more Orinoco Belt fields and one exploration block. Exxon called the deal a first step and said any investment needs stable policies and strong protections.
Why it matters
Exxon is weighing a return to Venezuela, a country its CEO called "uninvestable" in January, after policy changes that followed the removal of former president Nicolás Maduro. Nothing is final: Exxon would still need a joint venture or production-sharing contract before it could drill. If talks succeed, it would add a big new oil source for Exxon and put it in direct competition with Chevron, which already operates there.
Who this affects
- MarketneutralLow impact
- Oil investors see a possible new supply source, nothing firm.
- CompanymixedMedium impact
- Exxon shareholders gain an option on growth but face political risk.
- CompetitorsbearishLow impact
- Chevron faces a new rival for Venezuelan oil acreage.
- IndustrybullishMedium impact
- Big Western oil firms are returning to Venezuela after years away.
Exxon vs Chevron, ConocoPhillips
How we got here
Exxon exits Venezuela as its assets are nationalized under Hugo Chávez.
US court orders Venezuela to pay Exxon over $985 million for past expropriations.
Maduro is removed; Exxon CEO Darren Woods calls Venezuela "uninvestable".
Exxon signs non-binding memorandum with Venezuela and PDVSA in Caracas.
What to watch
- Whether Exxon and PDVSA agree a binding joint venture or production-sharing contract.2027-11-09
- Whether Russia's Rosneft-linked partner stays in Petromonagas, where it holds 40%.Q1 2027
Educational content only. Not investment advice.
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