ExxonMobil is eyeing Venezuela's oil bonanza after nearly two decades on the sidelines.
The US energy chief has reached a memorandum of understanding with the Venezuelan government and state oil company PDVSA to assess drilling opportunities.
ExxonMobil intends to "evaluate potential upstream opportunities," it said in a brief statement that failed to identify the areas under consideration.
Unlike Chevron, which moved quickly in September with a $7 billion, five-year investment plan aimed at doubling Venezuela's output to about 600,000 barrels a day, Exxon is keeping its cards close to its chest.
The company emphasized that returns will depend on additional regulatory reforms, stronger investor protections and guarantees that each investment can generate competitive returns.
Exxon executives have previously argued that Venezuela's oil sector remains too risky without reforms to its commercial framework, legal system and hydrocarbons legislation.
However, they see long-term potential in Venezuela's massive heavy oil resources, which require special technology and expertise to turn a profit.
Exxon has positioned itself as one of the players that has this special technology.
The tentative deal comes as the Trump administration has urged US energy companies to pour capital into rebuilding Venezuela's battered oil industry.
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