Fri, 30 Jan 2026

Fri, 30 Jan 2026 Venezuelan MPs approve bill to open up oil sector to private firms

The change could pave the way for more foreign investment in the country's oil industry.
Venezuela's National Assembly has passed a law allowing private companies, including foreign firms, more autonomy in the country's oil sector. The reform gives private companies control over projects and direct access to oil sales revenue. The law also allows for joint ventures with state firm PDVSA. Venezuela has the largest proven oil reserves in the world but has suffered from mismanagement and under-investment. The change is seen as a significant shift from the 2006 hydrocarbons law that tightened state control over the sector. The new law aims to attract foreign investment, which had been discouraged by the previous framework giving PDVSA majority control over operating oil projects. US President Donald Trump has pushed US oil companies to invest in Venezuela's vast oil reserves and has eased sanctions on the country's oil industry. This has given US companies more ability to operate in Venezuela and increased access to oil-related transactions. The Treasury Department issued a general licence approving a range of oil-related transactions, including oil refining by an established US entity. The new law is seen as paving the way for more foreign investment in the oil industry, with analysts predicting it could attract back foreign oil companies that had largely withdrawn from Venezuela in recent years. Existing international partners, such as Chevron, have requested reforms to the law and have continued to operate in Venezuela despite US sanctions. US-Venezuela negotiations over the sale of sanctioned Venezuelan oil are ongoing, with Washington licensing the export of tens of millions of barrels. The proceeds will be sent to an account initially in Qatar, with funds then released under US sanctions controls for public services in Venezuela.
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