Key facts
- ExxonMobil is negotiating to return to Venezuela and is interested in the Petromonagas heavy oil project in the Orinoco Belt.
- Continental Resources signed a preliminary oil development deal with Venezuela's state oil company PDVSA for the Ayacucho 2 Block.
- Exxon previously operated the Petromonagas project, then called Cerro Negro, until its nationalization in 2007.
- Roszarubezhneft, a Russian state firm, holds a stake in Petromonagas, which could affect any deal.
- ConocoPhillips is not negotiating reentry until it receives payment for $11 billion owed by Venezuela.
- The US administration has encouraged US firms to invest in Venezuela while limiting access for companies from China and Russia.
ExxonMobil is in discussions to re-enter Venezuela, with interest in the Petromonagas heavy oil project located in the Orinoco Belt, according to sources familiar with the matter. This potential move comes as other energy companies, including Continental Resources, Chevron, and Italy's Eni, have recently finalized or are pursuing deals in the country.
Continental Resources signed a preliminary memorandum of understanding with Venezuela's state oil company PDVSA to operate and develop the Ayacucho 2 area in the Orinoco, which is estimated to hold 30 billion barrels of oil. This deal is part of a broader US initiative to encourage investment in Venezuela's oil sector.
ExxonMobil previously held a stake in the Petromonagas project, then known as Cerro Negro, before its nationalization in 2007. The project is one of the few in the region with an operational upgrader capable of processing extra heavy crude into exportable grades. However, a stake in Petromonagas is currently held by Roszarubezhneft, a Russian state firm, which could complicate any potential deal.
Meanwhile, ConocoPhillips is reportedly holding off on negotiations to re-enter Venezuela until it receives approximately $11 billion owed by the country and PDVSA from the expropriation of its projects. Arbitration courts have previously ruled the expropriation unlawful, awarding ConocoPhillips billions.