ExxonMobil has issued a warning to Donald Trump and the administration’s aim to have oil companies invest in Venezuela.
Darren Woods, the CEO of ExxonMobil, the biggest US oil company, said that the country is not poised for investment at a White House gathering of energy executives on Friday.
“If we look at the legal and commercial constructs, frameworks in place today in Venezuela, today it’s uninvestable,” Woods said. The meeting included some of the Trump administration’s top aides.
He went on to explain that changes would need to be made to commercial and legal frameworks, including protections for investment and a change to hydrocarbon laws in Venezuela. But, he remained hopeful that these changes would be forthcoming.
“We’re confident that with this administration and President Trump, working hand in hand with the Venezuelan government, that those changes can be put in place,” Woods said.
Yet, Trump reiterated his claim that the capture of President Nicolas Maduro and his wife last week presents US oil companies with an unprecedent opportunity to extract from Venezuela’s oil.
“The plan is for them to spend, meaning our giant oil companies will be spending at least $100bn of their money, not the government’s money,” Trump said. “They don’t need government money, but they need government protection and government security.”
He also told the oil executives that if they didn’t want to contribute to the rebuilding efforts, he has others who would take their place.
Ryan Lance, the CEO of ConocoPhillips, said that Venezuela owes $12 billion in debt to the company. Trump responded that the company will get its money back, but later said, “We’re not going to look at what people lost in the past, because that was their fault. That was a different president. We’re going to make a lot of money, but we’re not going to go back.”
