Caracas, Jan 30 (PTI) — Venezuela’s acting President Delcy Rodríguez on Thursday signed a landmark law opening the country’s oil sector to private companies, ending more than two decades of state monopoly. The move aims to attract foreign investment and revive an industry long crippled by mismanagement, declining production, and US sanctions.
The legislation was approved by the National Assembly and signed by Rodríguez within hours. The timing coincided with the US Treasury easing restrictions on Venezuelan oil and expanding opportunities for American energy firms to operate in the country. Rodríguez also held talks with US President Donald Trump and Secretary of State Marco Rubio on managing Venezuelan oil exports and revenue flows. Venezuela holds the world’s largest proven crude reserves.
Under the new law, private firms will assume full control over production and sales while ownership of the hydrocarbon reserves remains with the state. Companies must demonstrate technical and financial capacity through ministry-approved business plans. Crucially, the law allows independent arbitration for disputes, addressing investor concerns about expropriation and politically influenced courts. Extraction taxes have also been revised, with royalties capped at 30 per cent and the government able to adjust rates based on investment needs and competitiveness.
The legislation was welcomed by oil workers who celebrated alongside lawmakers and supporters, waving Venezuelan flags in the legislative palace. While ruling-party officials hailed the reforms as a step to transform the country’s economy, opposition leaders called for greater transparency and accountability, urging public disclosure of project funds to prevent corruption and provide legal guarantees for investors.
The law represents a dramatic reversal of policies enacted by the late Hugo Chávez, who nationalized the oil sector in 2006 and made state-owned PDVSA the principal stakeholder in all major projects. While Chávez used oil revenues to fund social programs, years of mismanagement, falling oil prices, and corruption eroded production under both Chávez and his successor, Nicolás Maduro. Combined with decades of US sanctions, Venezuela’s oil industry struggled, contributing to a wider economic crisis that has driven more than 7.7 million citizens to emigrate.
By opening the sector to private and foreign investment, Rodríguez’s government aims to restore Venezuela’s oil industry and attract the resources needed to stabilize the economy, marking a significant shift in one of the country’s most important industries.
(AP)
Category: Breaking News
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