Exxon Mobil and the White House found themselves at odds following CEO Darren Woods’ skepticism about Venezuela’s investment appeal during a meeting with President Donald Trump and other oil executives, as reported by Reuters.
Woods expressed concerns that without significant legal and regulatory reforms, Venezuela would not be able to attract substantial foreign investment, labeling the current system as “uninvestable.”
The meeting, called by Trump shortly after U.S. forces ousted Venezuelan President Nicolas Maduro in a covert operation, aimed to rally the industry to invest up to $100 billion in rebuilding Venezuela’s energy sector. However, Woods’ reservations quickly overshadowed the discussions.
Trump publicly criticized Exxon’s stance while returning to Washington, stating, “I didn’t like Exxon’s response. I’ll probably be inclined to keep Exxon out. I didn’t like their response. They’re playing too cute.”
Exxon has a complex history with Venezuela’s oil industry, having been a key foreign partner of PDVSA before being forced to exit the country due to nationalizations. Court rulings later awarded Exxon and ConocoPhillips over $13 billion collectively for seized assets.
Woods highlighted the challenges of re-entering Venezuela, emphasizing the need for significant changes to historical practices. He stressed the importance of investment protections and reforming the country’s hydrocarbons law, stating that the current framework makes Venezuela “uninvestable.”
ConocoPhillips’ CEO also urged caution, calling for a comprehensive overhaul of Venezuela’s energy system and debt structure. Trump assured that past losses would not hinder future opportunities, emphasizing a fresh start.
Trump asserted U.S. control over companies operating in Venezuela, stating, “You’re dealing with us directly. You’re not dealing with Venezuela at all. We don’t want you to deal with Venezuela.”
During the meeting, Trump met with leaders from various energy companies, discussing the potential for significant investments in Venezuela’s oil infrastructure to benefit both the country’s economy and U.S. interests.
The administration’s strategy includes tightening pressure on Venezuela through an oil “quarantine,” with plans to sell sanctioned crude on the open market under U.S. control.
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