ExxonMobil Secures Preliminary Deal to Explore Oil Projects in Venezuela

ExxonMobil said it has reached a preliminary, nonbinding arrangement with Venezuela that will allow the company to evaluate possible drilling projects, according to a report by the New York Times. The agreement was signed on Monday, and Interim President Delcy Rodriguez welcomed the company, saying, "We welcome you back." The deal is being presented as a political benefit for President Trump, who has encouraged U.S. producers to return to Venezuela after a recent U.S. military operation removed Nicolás Maduro from power. Since Exxon’s CEO called Venezuela "uninvestable" in January, oil prices have risen about 50 percent amid the war in Iran, increasing demand for crude away from the Strait of Hormuz. Caracas has also amended its oil laws to attract foreign investors. Exxon withdrew from Venezuela in 2007 rather than accept stricter operating terms and has since sought compensation for expropriated assets. While the company previously said it was not in a hurry to settle following the legislative changes, it now emphasizes that any actual investment will depend on "stable policies" and "competitive returns."