ExxonMobil signs preliminary Venezuela oil agreement

ExxonMobil signed a memorandum of understanding with Venezuela on Monday that could allow the US oil company to return to hydrocarbon operations in the country after nearly two decades away.

The agreement paves the way for ExxonMobil to develop oil fields containing billions of barrels in reserves. ExxonMobil has not operated in Venezuela since 2007, when Hugo Chavez seized its assets as part of a wider expropriation campaign.

Venezuela's interim leader Delcy Rodriguez said in a televised address that the agreement was the result of months of negotiations aimed at ExxonMobil's effective return to the country's hydrocarbon operations.

Dan Ammann, president of ExxonMobil Upstream Company, said the partnership could bring significant benefits to stakeholders.

Venezuela has the world's largest proven oil reserves, but years of sanctions, underinvestment and mismanagement have damaged the industry. Rodriguez said Venezuela retains control of its oil.