ExxonMobil has a team on the ground in Venezuela this week to examine oil opportunities, according to upstream president Dan Ammann. This follows the ouster of President Nicolas Maduro nearly two months ago. Ammann, speaking at the CERAWeek conference, noted the country holds a tremendous amount of resource, but the primary challenge is not the resource itself.

Investment Environment and Challenges

The key challenge identified is whether the right investment environment and fiscal regime exists. Ammann stated there has been some progress on this front, referencing changes to the country's hydrocarbon laws. The company's current efforts are focused on assessing both the resources and the existing infrastructure to determine the scale of investment required.

Scale of Investment and Production Potential

Ammann indicated that while companies could likely drive incremental production from the current state, substantial, long-term investment is necessary. He estimated that "hundreds of billions of dollars of investment over a really long period of time" would be needed. ExxonMobil is in the process of understanding the lay of the land to inform a potential substantive investment decision.

Regional Dispute Impact

Ammann also addressed the ongoing border dispute between Guyana and Venezuela, which has blocked access to part of ExxonMobil's prolific Stabroek block offshore Guyana. He expressed optimism, stating, "We expect there will be a path to resolution sooner rather than later."