Caracas: Venezuela’s National Assembly has approved a sweeping overhaul of the country’s hydrocarbons law, opening the door for greater participation by private companies, including foreign firms, in the nation’s lucrative oil sector.
Once signed into law by Interim President Delcy Rodríguez, the reform is expected to significantly improve Venezuela’s ability to attract foreign investment into an industry that has suffered from decades of mismanagement, under-investment, and international sanctions.
The new legislation relaxes long-standing rules that required the state-owned oil company PDVSA to hold majority control over oil projects. Under the revised framework, private firms with approved contracts will be allowed to operate oil fields with greater autonomy, while joint ventures with PDVSA will gain increased control over operations and more direct access to revenues from oil sales.
The vote comes as the United States eases sanctions on Venezuela’s oil industry. Shortly after the bill was passed, the US Treasury Department issued a general licence allowing a broader range of oil-related transactions, including refining by established US entities. The move gives American oil companies more flexibility to operate in Venezuela.
US President Donald Trump has publicly encouraged US energy firms to invest in Venezuela, citing the country’s vast oil reserves, the largest proven reserves in the world. However, restrictive laws and political uncertainty had long been major deterrents for investors.
Venezuela’s oil industry was first nationalised in the mid-2000s under former president Hugo Chávez, with state control tightened further in later years. Many foreign companies withdrew, and some continue to seek compensation for altered contracts.
National Assembly Speaker Jorge Rodríguez urged lawmakers to back the reform, describing it as a necessary step to revive the economy and attract foreign capital. Analysts say the changes could encourage companies such as Chevron, which has continued limited operations under a special US licence, to expand their presence.
The reform also coincides with US-Venezuela negotiations over sanctioned oil sales, with Washington licensing the export of tens of millions of barrels. US Secretary of State Marco Rubio said proceeds would be held in a monitored account and released for public services such as healthcare, sanitation, and policing.
In a separate development, American Airlines announced it would resume flights to Venezuela for the first time in more than six years, signalling a broader easing of restrictions between the two countries.
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