Despite the political upheaval following President Nicolas Maduro's recent ouster, the US supermajors ExxonMobil and Chevron have expressed continued interest in Venezuela's oil sector, highlighting both the challenges and potential opportunities.

ExxonMobil's Position and Conciliatory Stance

ExxonMobil CEO Darren Woods reiterated an offer to send a team to assess Venezuela's oil infrastructure, contingent on the right conditions, to inform US policy decisions. He acknowledged the country is currently "uninvestable" due to political turmoil and dilapidated infrastructure requiring massive investment. However, Woods struck a conciliatory tone toward the Trump administration, expressing belief in its commitment to stabilizing Venezuela, kick-starting its economy, and facilitating a democratic transition. He suggested these efforts could, over time, address the country's challenges.

Woods pointed to ExxonMobil's technical expertise with heavy crude, similar to resources in Canada, as an advantage that could lead to lower-cost production and higher recovery in Venezuela. Regarding historical disputes, he noted the company has recovered a substantial amount from assets seized in 2007, with the remaining balance being immaterial to the corporation, emphasizing that future investment requirements are the larger consideration.

Chevron's Ongoing Operations and Growth Plans

Chevron, the sole remaining US operator in Venezuela following 2019 sanctions, affirmed its commitment. CEO Mike Wirth stated the company sees an opportunity to grow its Venezuelan output by 50% within the next 18 to 24 months. Since sanctions were eased in 2022, Chevron has increased production by over 200,000 barrels per day to approximately 250,000 bpd. The company is already processing Venezuelan crude at its Pascagoula, Mississippi refinery and has capacity to absorb more at its US refineries.

Wirth reported that, despite widespread infrastructure decay, Chevron's operations have generated enough cash to fund basic maintenance on its assets, which have run uninterrupted with worker safety maintained over the past month. While declining to give a long-term outlook, he emphasized Venezuela's undeniable resource potential and Chevron's work with both Venezuelan and US authorities to improve the investment climate, noting the need for country stability and a reliable fiscal regime.

Broader Context and Recent Developments

The US has actively sought to steer Venezuela's oil industry since Maduro's capture, initially brokering a deal for Venezuelan oil shipments. Recent steps to open the sector include the US Treasury Department easing sanctions to allow US oil companies back into Venezuela and Venezuela's National Assembly modifying hydrocarbon laws to attract foreign investment. Chevron is currently reviewing these new legal changes.