ExxonMobil may be kept out of Venezuela, says Trump
US President Donald Trump said he may keep ExxonMobil out of Venezuela after the company’s CEO termed conditions there uninvestable. Trump made the remarks after a White House meeting with oil executives to discuss plans for Venezuelan oil reserves
New York: US President Donald Trump has said that he is “inclined” to keep ExxonMobil out of Venezuela after its top executive described conditions in the South American nation as “uninvestable”.
Trump chaired a meeting in the White House on Friday with oil and gas executives to discuss plans for the Venezuelan oil reserves in the wake of the ouster of former President Nicolás Maduro.
“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 told reporters aboard Air Force One en route to Washington DC from Florida.
At the meeting, ExxonMobil CEO Darren Woods called the conditions in Venezuela as “uninvestable”. “If we look at the legal and commercial constructs and frameworks in place in Venezuela today, it’s uninvestable, and so significant changes have to be made to those commercial frameworks and 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 then expressed confidence that with the Trump administration and President Trump working hand in hand with the Venezuelan government, “those changes can be put in place”. Woods 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.”
Several other executives at the meeting expressed similar reluctance, warning that the industry would first need to secure extensive security and financial guarantees before beginning a years-long effort to ramp up oil production, CNN reported.