US energy major ExxonMobil is assessing seven areas in Venezuela for potential oil and gas development under a preliminary agreement with the Venezuelan government and state-owned Petróleos de Venezuela (PDVSA), as it considers a return to the country nearly two decades after its assets were nationalised.

The memorandum of understanding (MoU), signed on November 9 in Caracas in the presence of interim President Delcy Rodríguez, grants ExxonMobil exclusive rights for one year to negotiate contractual terms and examine geological and operational data related to the areas. However, the agreement is non-binding and does not commit the company to investing in any specific project.

Among the opportunities under evaluation is Petromonagas, formerly known as Cerro Negro, where ExxonMobil previously operated before the Venezuelan government expropriated its assets in 2007. The project is one of the few in the country with an operational upgrader capable of processing extra-heavy crude into exportable grades.

The company is also assessing three additional areas in the Orinoco Belt containing developed and undeveloped fields, while separately negotiating exploration rights for another block, Reuters reported, citing four sources familiar with the discussions.

However, the potential return faces unresolved ownership questions involving Russian interests in Petromonagas and Petrovictoria. Russian state-owned oil company Rosneft acquired a 40% stake in Petromonagas following the expropriation of Exxon’s assets, with the stake transferred in 2020 to Roszarubezhneft, another Russian state-owned entity.

ExxonMobil said the agreement represents a meaningful first step but stressed that any future investment would require stable policies, clear regulations, strong investment protections, and competitive returns.

The agreement follows a shift in the company’s position toward Venezuela’s investment environment. In January 2026, ExxonMobil CEO Darren Woods described the country as “uninvestable” during a White House meeting, citing concerns over long-term investment protection and the risk of future expropriations.

However, following reforms to Venezuela’s oil sector earlier this year, Woods acknowledged progress in improving the country’s fiscal and legal conditions during the company’s third-quarter earnings call.

Venezuela’s efforts to attract international oil companies come as the country seeks to revive an oil industry affected by years of underinvestment, operational challenges at PDVSA, and international sanctions.

In January 2026, Venezuela approved reforms to its main oil legislation, granting greater operational autonomy to foreign partners of PDVSA, including the ability to produce, export, and sell their output. The changes were intended to encourage foreign investment and help restore the country’s oil production.

However, uncertainty surrounding contractual arrangements and investment protections has continued to weigh on investor decisions. In April 2026, Reuters reported that international energy companies were awaiting new contract models detailing the terms for production-sharing agreements and joint ventures before committing to additional investments.