KEY POINTS
- Trump criticized Exxon’s reluctance to invest in Venezuela.
- Oil executives urged legal and industry reforms.
- Washington plans to control which firms re-enter Venezuela.
U.S. President Donald Trump said he may block Exxon Mobil from investing in Venezuela, escalating tensions with the oil major after its chief executive openly questioned the country’s appeal during a White House meeting with industry leaders.
White House rebukes Exxon stance
Trump said on Sunday that he was inclined to keep Exxon out of Venezuela after the company’s chief executive, Darren Woods, described the country as uninvestable during a high-profile meeting last week. Speaking to reporters aboard Air Force One as he returned to Washington, Trump said he was dissatisfied with Exxon’s response after urging oil executives to commit fresh capital to revive Venezuela’s battered energy sector.
“I didn’t like Exxon’s response,” Trump said. “I’ll probably be inclined to keep Exxon out. I didn’t like their response. They’re playing too cute.”
Woods made the remarks on Friday during a meeting that included at least 17 other oil executives. He told Trump that Venezuela would need to overhaul its legal framework before it could attract long-term investment. His comments stood out as the most cautious view expressed at the meeting and quickly overshadowed the administration’s effort to rally support from major producers.
The exchange came less than a week after U.S. forces captured and removed Venezuelan President Nicolas Maduro from power in a swift overnight operation. Trump had encouraged the executives to spend $100 billion to rebuild Venezuela’s oil industry, framing the effort as a cornerstone of the country’s economic recovery.
Exxon did not immediately respond to a request for comment.
Oil majors urge legal changes
Reuters reported that Exxon, ConocoPhillips and Chevron were once among the most prominent partners of Venezuela’s state-owned oil company, PDVSA. That relationship unraveled after the late President Hugo Chavez nationalized the oil industry between 2004 and 2007. Chevron later negotiated agreements to remain involved, while Exxon and ConocoPhillips exited the country and pursued arbitration claims.
Court rulings have since ordered Venezuela to pay more than $13 billion collectively to Exxon and ConocoPhillips for assets seized during the nationalisation drive. Woods told Trump that Exxon had already seen its assets expropriated twice in Venezuela, making any return contingent on sweeping reforms.
“We’ve had our assets seized there twice,” Woods said. “To re-enter a third time would require some significant changes from what we’ve historically seen.”
He added that durable investment protections and reforms to Venezuela’s hydrocarbons law were necessary. Under current legal and commercial frameworks, he said, the country remained uninvestable.
ConocoPhillips CEO Ryan Lance also pressed Trump for a comprehensive restructuring of Venezuela’s debt and energy system. Trump said ConocoPhillips would recover much of what it was owed but signaled that the administration would start fresh. He added that Washington would decide which firms could operate in Venezuela and warned companies against dealing directly with the country.
On Saturday, Trump signed an executive order blocking courts or creditors from seizing Venezuelan oil revenues held in U.S. Treasury accounts.
