Caracas, Jan 31: Venezuela’s acting President Delcy Rodríguez has signed a landmark oil industry overhaul law that loosens nearly two decades of strict state control and opens the country’s vast oil sector to private and foreign investment.The legislation, approved by the National Assembly and enacted on January 29, 2026, marks a major shift from the socialist‑era policies that once mandated state ownership and management through Petróleos de Venezuela SA (PDVSA). Under the new framework, private companies will be allowed to control oil production and sales, provided they meet technical and financial requirements approved by Venezuela’s Oil Ministry.
Key changes include the removal of PDVSA’s exclusive control, the introduction of independent arbitration for disputes instead of mandatory Venezuelan court proceedings, and adjustments to extraction taxes with a royalty cap of 30%, aimed at making projects more attractive to investors.
The reforms come alongside the easing of U.S. sanctions on Venezuelan oil exports, creating a more conducive environment for foreign energy firms — especially from the United States — to engage with the country’s oil industry after years of underinvestment and production decline.
Supporters in the ruling party argue the overhaul could change Venezuela’s economy and help revive an industry once crippled by mismanagement and sanctions, while critics urge greater transparency and accountability to build investor trust.