Exxon Mobil is negotiating a deal to produce oil in Venezuela nearly two decades after the company was forced to leave the South American country due to its socialist leadership.In 2007, Exxon exited the nation after former Venezuelan President Hugo Chavez nationalized foreign-owned oil projects. The country has one of the world’s largest oil reserves, a key reason why President Donald Trump has prioritized its economic reopening since ousting former Venezuelan dictator Nicolas Maduro in January.The Exxon-Venezuela deal still has to be finalized, though the New York Times reported an announcement could be made as soon as this month. An agreement would mark a major win for Trump.
Exxon, the largest U.S. oil company with a market capitalization of over $600 billion, has been more open to rekindling ties with Venezuela in light of the Iran war and surging oil prices.
Exxon CEO Darren Woods was initially hesitant to do business with the country again. “We’ve had our assets seized there twice, and so you can imagine to reenter a third time would require some pretty significant changes,” he told Trump at a White House meeting in January, days after Maduro’s capture. “Today, it’s uninvestable.”
