Exxon Nears Return to Venezuela With PDVSA Deal as XOM Shares Fall 3.5% on Fed Day

Exxon Mobil is close to signing a preliminary agreement to invest in Venezuelan oil fields, marking a potential return to the country nearly 20 years after its exit. The company could sign a memorandum of understanding with state-run PDVSA as soon as this month, covering developed and undeveloped fields that together hold roughly 50 billion barrels of oil, according to the Wall Street Journal. Venezuela claims total reserves of approximately 300 billion barrels.

The Venezuela news came on a difficult day for Exxon shares, which fell 3.5% as energy was the worst-performing sector on Fed Day. Every major energy name finished in the red, with ConocoPhillips down 6.1% and EOG off 5.7%, while banks also sold off broadly and semiconductor names moved higher.

Separately, Exxon's 275,000-barrel-per-day refinery in Joliet, Illinois remained offline as of September 15, with regulatory filings showing continued SO2 flaring. The facility was expected to potentially resume operations by the weekend.