ExxonMobil is preparing to send an evaluation team to Venezuela within the coming weeks to begin analyzing the country's oil infrastructure and opportunities. This follows the U.S. Treasury Department's issuance of a general license in February, which allows major oil companies to resume exploration activities after years of sanctions.

Logistical Preparations and Historical Context

The company has assembled a group and is currently finalizing logistical and security arrangements. This renewed opportunity stems from a shift in U.S. policy, including the rollback of sanctions, which is intended to encourage companies to return and invest in reviving Venezuela's oil industry. Many companies, including ExxonMobil, had previously left due to sanctions or asset seizures, with ExxonMobil's assets being seized in 2007.

Potential for Success and Necessary Conditions

A senior executive recalled ExxonMobil's past "very successful operation" in Venezuela and expressed confidence in replicating that success. He further suggested that new production techniques developed for heavy oil in Canada could be applied to similar grades in Venezuela, potentially leading to even greater success. However, the executive emphasized that improved fiscal and security guarantees from the Venezuelan government are essential for any long-term investment. The company stated it will work with the government to secure the right terms and would be interested in returning if those conditions are met.

Political Considerations and Official Stance

These plans proceed despite previous political friction, including a past statement from the U.S. President considering blocking ExxonMobil's return after the company's CEO had labeled Venezuela "uninvestable." The CEO later reaffirmed a commitment to sending a team. The general licenses from the U.S. Treasury do not prohibit specific companies from negotiating with Venezuela or its state-owned oil company, PDVSA.