SCOTT SIMON, HOST:
The U.S. oil giant ExxonMobil has taken a step toward returning to Venezuela nearly 20 years after the country nationalized its oil projects there. And that's quite a turnaround. In January, just days after U.S. forces captured President Nicolás Maduro, Exxon's chief executive described Venezuela as, quote, "uninvestable." President Trump has been making big promises about the future of Venezuela's oil industry. Reporter Manuel Rueda is in Caracas. Manuel, thanks so much for being with us.
MANUEL RUEDA: Thank you.
SIMON: Why do you think Exxon is showing interest now?
RUEDA: So there are several factors coming into play here. This year, Venezuela's interim government overhauled its petroleum law, making the country more attractive for international oil companies. Among other things, the reform says that private companies based in Venezuela can operate oil fields themselves and take any disputes with the government to international arbitration. But what could really be boosting interest in Venezuelan oil now, in late 2026, is the situation in the Middle East. This is what Luisa Palacios, a former oil executive and researcher at Columbia University Center for Energy Policy, says.
LUISA PALACIOS: The opening of Venezuela to private oil investment is happening in the context of very high oil prices and high uncertainty about future sources of supply and the risk associated with them. And so it makes sense to have Venezuela as a diversification play.
RUEDA: What ExxonMobil is doing for the moment is researching possibilities for drilling in Venezuela. However, others have already committed to expanding operations and investing big amounts of money. For example, Chevron, which has been in Venezuela for years, recently announced a $7 billion investment over a five-year period and said it will double its output in Venezuela.
SIMON: Manuel, have these deals had any effect on the Venezuelan economy?
RUEDA: No, Scott. Not really. And that's partly because it takes time to get these projects running and to the point where companies are paying royalties to the government. The reality is that many places in Venezuela currently face daily power cuts, while there's all this talk about the country having some of the world's greatest energy reserves. But there is some optimism. Here's what Wasim Miani told me. He owns a furniture store in Valencia, a city where the power goes off to - for up to six hours a day.
WASSIM RICHANI: Right now we don't see these deals affecting in the economic. I think in the near future, yeah, they will because we are a petroleum country.
SIMON: Now, some of these oil deals in Venezuela have been supported by the Trump administration. But as Democrats take control of Congress and put some of Trump's policies under more scrutiny, could some of these contracts be canceled?
RUEDA: So in recent months, the Trump administration announced this big new oil deal in Venezuela. The U.S. said it was entering a partnership with a company called North American Blue Energy Partners involving 17 oil fields. But it's a deal that's causing concerns because many are doubtful of this company's capacities. It's only been around for two years. And one of the men behind the company has been facing money-laundering investigations in Europe, though he hasn't been charged.
And there are also questions over whether the deal complies with Venezuelan laws and whether both sides are even interpreting the lengths of the contracts in the same way. The Trump administration said this was a 100-year deal. Venezuela's government says it would be for 25 years. So there's doubts about what would happen to this agreement should the government in Venezuela change.
SIMON: Manuel Rueda reporting from Caracas. Thanks so much for being with us.
RUEDA: You're welcome. Transcript provided by NPR, Copyright NPR.
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