US President Donald Trump has said he is “inclined” to keep ExxonMobil out of Venezuela after the company’s chief executive described conditions in the oil-rich South American nation as “uninvestable,” casting doubt on the administration’s push to draw US energy firms back into the country following the ouster of former president Nicolás Maduro.
Trump made the remarks after chairing a White House meeting on Friday with oil and gas executives to discuss plans for Venezuela’s oil reserves.
Speaking to reporters aboard Air Force One as he returned to Washington from Florida, Trump criticised Exxon’s stance.
“No, I didn't like Exxon's response. You know, we have so many that want it, and I'd probably be inclined to keep Exxon out. I didn't like their response. They're playing too cute,” Trump said.
During the meeting, ExxonMobil CEO Darren Woods warned that Venezuela’s current legal and commercial environment was not suitable for major investment.
“If we look at the legal and commercial constructs and frameworks in place today in Venezuela today, it's uninvestable, and so significant changes have to be made to those commercial frameworks, the legal system. There has to be durable investment protections, and there has to be a change to the hydrocarbon laws in the country,” Woods said.
Woods also pointed to Exxon’s past experience in the country, saying, “We've had our assets seized there twice, and so you can imagine to re-enter a third time would require some pretty significant changes from what we've historically seen here.”
At the same time, Woods expressed confidence that reforms could eventually be implemented with US support. He said that with the Trump administration and President Trump working with the Venezuelan government, “that those changes can be put in place.”
He added that in the short term, “there are things that can be done while these longer term issues are being worked (out). We haven't been in the country for almost 20 years.”
“We think it's absolutely critical in the short term that we get a technical team in place to assess the current state of the industry and the assets to understand what would be involved to help the people of Venezuela get production back on the market. With the invitation of the Venezuelan government and with appropriate security guarantees, we are ready to put a team on the ground there,” Woods said.
Several other executives at the meeting voiced similar concerns, warning that companies would need strong security and financial guarantees before committing to a years-long effort to revive oil production, CNN reported. Trump sought to ease those concerns by telling executives they would deal directly with the US rather than the Venezuelan government, though some remained unconvinced.
Trump reiterated his displeasure on Sunday as he departed West Palm Beach, Florida. “I didn't like Exxon's response,” he said. “They're playing too cute.”
On Friday, Trump also signed an executive order aimed at protecting Venezuelan oil revenue from being used in judicial proceedings. The order, made public on Saturday, warned that allowing such seizures could “undermine critical US efforts to ensure economic and political stability in Venezuela.” The country has long faced US sanctions, political uncertainty and a history of state asset seizures.
Getting US oil companies to invest in Venezuela and help rebuild its energy infrastructure is a top priority for the Trump administration after Maduro’s capture.
The White House has framed the effort in economic terms, with Trump previously saying the US has seized tankers carrying Venezuelan oil, is taking over the sale of 30 million to 50 million barrels of previously sanctioned crude, and plans to control sales worldwide indefinitely.
