The preliminary agreement between the U.S. oil company and the Venezuelan government grants the company a one-year exclusivity period to access subsurface data and directly assess seven areas for development.

The memorandum of understanding signed by U.S. oil company ExxonMobil, Petróleos de Venezuela S.A. (Pdvsa), and the national government, in the presence of interim President Delcy Rodríguez, grants the U.S. giant a one-year exclusivity period to access subsurface data and directly assess seven areas for development, ranging from mature fields to untapped blocks and deepwater exploration areas, according to four people familiar with the matter.

This strategic rapprochement could give Exxon a significant operational advantage in the region. The multinational expects to generate efficiencies by integrating these potential assets with its established operations in Guyana’s prolific Stabroek Block and its deepwater projects in Trinidad and Tobago.

Among the assets under review, the company’s possible return to Petromonagas stands out. Petromonagas is an extra-heavy crude project in the Orinoco Oil Belt that has one of the country’s few operational upgrading plants. The company is also examining three other blocks in the Orinoco region and negotiating exploration rights in a new area.

Exxon’s potential return comes after years away following the expropriation of its assets in 2007 under Hugo Chávez. Earlier this year, the energy company had rejected an initial proposal from the Venezuelan government; however, recent fiscal and legal reforms promoted by the Ministry of Petroleum have softened the company’s leadership’s stance. It now describes the memorandum as a significant first step, though one contingent on the consolidation of long-term investment guarantees.

The process also adds an element of international diplomacy. In the case of Petromonagas and Petrovictoria, two of the projects included in talks between Exxon and the Venezuelan authorities, the participation of Russian capital—currently represented by state-owned Roszarubezhneft, which holds a 40% stake in Petromonagas—raises questions about how joint-venture arrangements will be restructured. This is taking place in a context where Hydrocarbons Minister Paula Henao has reaffirmed respect for existing agreements with Russia and China, while the U.S. administration has described the negotiations as a notable development for the regional energy sector, Reuters reports.

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