Exxon Mobil is closing in on a preliminary agreement with Venezuela to explore investments in multiple oil fields, signaling a potential return to the South American nation nearly two decades after its exit. People familiar with the discussions indicate the U.S. energy titan could sign a memorandum of understanding with Venezuela's state oil company as early as this month, focusing on investments in several developed and undeveloped fields. The talks, however, remain subject to collapse or could extend beyond September.

One insider noted the potential agreement could cover fields with combined underground oil reserves exceeding 50 billion barrels. Venezuela claims total reserves of roughly 300 billion barrels, ranking it first globally. Amid U.S. President Donald Trump's push for American producers to revitalize Venezuela's ailing petroleum sector, Exxon Mobil has dispatched teams to Caracas this year to negotiate possible deals. Sources say talks have gradually gained traction over time, with further discussions expected this week at the G20 energy abundance ministerial meeting in Houston.

Trump, along with Secretary of State Marco Rubio, is striving to reorient the global energy industry toward the Western Hemisphere, encouraging companies to invest $100 billion in Venezuela to boost its flagging crude output and channel oil to U.S. refineries. Exxon Mobil's primary rival, Chevron Corp, inked a deal earlier this month to invest $7 billion over five years through its Venezuelan joint venture, targeting a doubling of output to 600,000 barrels per day. On September 16, billionaire oil magnate Harold Hamm signed a preliminary accord for his Oklahoma-based Continental Resources to explore an undeveloped field in Anzoátegui state.

Many large oil and gas firms remain hesitant to commit capital to Venezuela, wary of financial and legal pitfalls from multi-year investments in a country with a history of nationalizing private assets. Exxon Mobil and ConocoPhillips are still seeking compensation for billions in losses stemming from Hugo Chávez's 2007 expropriation of their assets. During a televised White House meeting with Trump in January, Exxon Mobil CEO Darren Woods and others voiced caution. Woods said at the time that without significant changes to Venezuela's commercial framework, legal system, and hydrocarbon laws, the country appeared "not worth investing in."

Since then, Venezuela has revised its petroleum regulations, including provisions to lower oil production tax rates. Continental Resources cited recent regulatory and legal framework shifts as a factor enabling its September 16 deal to proceed, according to a company press release.