ExxonMobil signed a memorandum of understanding to return to Venezuela, which it left in 2007

Venezuela signed a memorandum of understanding with ExxonMobil aimed at the U.S. oil major's return to the country, nearly two decades after the company exited in 2007. The agreement marks a potential re-entry for ExxonMobil into one of the world's largest crude reserves, following Venezuela's 2007 nationalization of oil projects that drove out several international firms. The memorandum is non-binding and does not yet specify investment amounts or project terms. It comes as Caracas seeks to rebuild foreign investment in its oil sector, which has suffered from years of underinvestment and U.S. sanctions. What to watch next is whether the memorandum translates into concrete contracts, and how U.S. sanctions policy affects ExxonMobil's ability to operate and book reserves in the country.