January 30, 2026 | 11:26 am
TEMPO.CO, Jakarta - Venezuela's acting President Delcy Rodriguez on Thursday signed a law that will open the nation's oil sector to privatization.
Lawmakers in the country's National Assembly approved the overhaul of the energy industry law earlier in the day.
"We're talking about the future. We are talking about the country that we are going to give to our children," Rodriguez said.
Ruling-party lawmaker Orlando Camacho, head of the assembly's oil committee, said the reform "will change the country's economy."
The decision comes less than a month after the U.S. launched a military attack and kidnapped the country's then-President Nicolas Maduro.
Washington has since put pressure on Caracas for access to its oil sector.
President Donald Trump's administration is pursuing an ambitious $100 billion reconstruction plan for Venezuela's oil industry, and intends to manage the oil sales "indefinitely."
It has also been pressing U.S. oil executives to invest in Venezuela, but they have so far been reluctant to commit.
What will change for Venezuela's oil sector?
The legislation offers private companies control over the production and sale of oil. It also relinquishes state control of exploration.
Furthermore, the law allows for independent arbitration of disputes and removes the mandate for disputes to be settled only in Venezuelan courts.
Taxes will be limited to a single contribution of no more than 15 percent on gross income, and royalties limited to 30 percent.
It marks a reversal of one of the central tenets of the nation's self-proclaimed socialist movement that has ruled for decades.
"This obviously completely dismantles Hugo Chavez's oil model," oil analyst Francisco Monaldi told the AFP news agency.
But he pointed out that the state will retain some discretion over the issuing of contracts to private players.
Hope to boost investment and production
Venezuela sits on the world's largest proven reserves of crude.
It was once a major producer and exporter globally but years of underinvestment, corruption and mismanagement have hit exploration and production hard.
U.S. sanctions in place since 2019 have also contributed to the challenges.
The industry is currently undergoing a slow recovery.
Production reached 1.2 million barrels per day in 2025, way up from the 300,000 barrels extracted in 2020.
It's still far from the 3 million barrels achieved at the start of the century.
What does the government expect?
The Venezuelan government hopes the changes will convince U.S. oil majors to return and invest in the country.
Multiple U.S. oil companies operated in Venezuela until 2007.
But the then Venezuelan government under Maduro's predecessor, Hugo Chavez, tightened state control over the oil sector.
This forced the companies to exit the country after refusing to cede majority control to the state.
At present, Chevron has been the only U.S. firm operating in Venezuela, under a special license.
U.S. eases sanctions
As Venezuela was approving the changes, the U.S. began to ease sanctions on Venezuelan oil.
The U.S. Treasury issued a general license authorizing transactions involving the government of Venezuela and state oil company PDVSA.
The decision marks a change from a previous plan to grant individual exemptions to sanctions for companies seeking to do business in the country.
Read: Venezuela Receives $300M in Proceeds From First US Oil Sale
Click here to get the latest news updates from Tempo on Google News
Trump Threatens Tariffs on Countries Selling Oil to Cuba
34 menit lalu
The move, aimed at cutting off oil supplies to Cuba, could further aggravate an already deep energy crisis in the Caribbean island.
All 15 Passengers Dead in Colombian Plane Crash
22 jam lalu
A Colombian aircraft carrying 15 people, including Congressman Diogenes Quintero, made last contact with air traffic control shortly after takeoff.
Venezuela Receives $300M in Proceeds From First US Oil Sale
8 hari lalu
Interim president Delcy Rodriguez said the money from US sales of Venezuelan oil will be used to prop up the currency.
What Venezuela Teaches Indonesia About Managing Critical Minerals
9 hari lalu
CORE Indonesia reminds the government to reorganize the management system of critical minerals amidst the US-China influence struggle.
WEF: Donald Trump Set to Dominate Davos 2026
9 hari lalu
After attacking Venezuela, capturing its leader, and reviving Greenland ambitions, Trump's presence in Davos will raise the stakes at the WEF.
Fact Check: Viral Video of Maduro Arrest Celebration Is AI-Generated
11 hari lalu
Fact check - The video was created using artificial intelligence (AI) manipulation.
Regime Change in Venezuela and the Crisis of Global Order
12 hari lalu
Its neighbours have been largely silent or supportive of US raid that captured Maduro, but impact of that raid will be felt far beyond South America.
US Senate Blocks Bid to Limit Trump's Military Authority in Venezuela
14 hari lalu
The US Senate on Wednesday voted 51-50 to block a bipartisan resolution aimed at limiting Trump's authority to use military force in Venezuela.
Venezuela: Could Machado be the Big Loser in the Power Game?
14 hari lalu
Venezuela opposition leader's plan to give Trump her Nobel Prize may be backfiring.
Why Iran's Fate Means More to Oil Markets than Venezuela's
15 hari lalu
Markets shrugged off Venezuela's oil turmoil but are more anxious about Iran, where unrest or regional escalation could have repercussions.
