ExxonMobil left due to Chavez nationalization... Entering Venezuela for the first time in 19 years

ExxonMobil, the largest oil company in the United States, is attempting to enter Venezuela for the first time in 19 years.

According to Bloomberg News and local daily El Nacional on the 10th (local time), ExxonMobil signed a memorandum of understanding (MOU) for oil exploration and production with the Venezuelan State Petroleum Company (PDVSA) the day before.

As a result, Exxon Mobil has established a bridgehead for re-entering Venezuela for the first time in 19 years.

ExxonMobil withdrew from Venezuela in 2007 during the nationalization of the oil business promoted by the Chavez regime.

However, as the United States has recently begun to exert strong influence on Venezuela following the ouster of former Venezuelan President Nicolas Maduro, oil industry exchanges between the two countries are becoming more active.

However, since the memorandum of understanding is not binding, re-entry may be canceled.

ExxonMobil said in a statement, "This memorandum of understanding is a meaningful first step," but added, "For future investments to occur, stable policies, clear regulations, strong investor protection, and competitive rates of return must be guaranteed."

Interim President Delcy Rodriguez explained that areas for oil exploration and production include "undeveloped areas containing billions of barrels of oil, as well as areas adjacent to or adjacent to existing developments."

With this agreement, the possibility of ExxonMobil re-entering Venezuela has increased, but ExxonMobil is still maintaining a cautious stance as the country has experienced asset nationalization twice in the past 50 years, Bloomberg reported.

According to the Organization of the Petroleum Exporting Countries (OPEC), Venezuela has the world's largest oil reserves, amounting to 300 billion barrels.