ExxonMobil and Continental Resources are exploring potential investments in Venezuelan oil fields, though analysts caution that preliminary agreements remain years away from actual production.
Exxon is reportedly nearing a preliminary deal for Venezuelan Orinoco Belt fields with large geological estimates, but shares slipped less than 1% as the figures are not booked reserves.
Continental Resources signed a non-binding memorandum of understanding with Venezuela's PDVSA for the Ayacucho 2 Block, a preliminary step far from production.
Potential future Venezuelan supply additions are years away and not yet reflected in booked reserves or production.
ExxonMobil and Continental Resources are in preliminary discussions to re-enter Venezuela's Orinoco Belt, targeting fields with significant geological estimates. Despite the potential scale, these figures represent reservoir estimates rather than booked reserves, and the companies face substantial political and historical risks in the region.
The agreements are currently in the memorandum of understanding stage, which is not a binding contract and lacks the status of booked reserves or active production.