Venezuelan lawmakers have approved sweeping reforms to the country’s oil industry law that significantly loosen decades of state control and open the sector to greater foreign participation. The reform, backed by acting President Delcy Rodríguez and passed unanimously by the National Assembly, is widely seen as a response to pressure from US President Donald Trump and a push to revitalise Venezuela’s long-struggling oil industry.
Under the changes, private and foreign companies will gain more operational control over oil production and sales, with increased autonomy to manage projects and resolve disputes through independent arbitration rather than relying solely on Venezuelan courts. The legislation also allows for more flexible tax and royalty arrangements aimed at attracting investment and boosting output. Although the Venezuelan state still retains ownership of oil reserves, the reforms mark a major departure from the strict state dominance established under Hugo Chávez.
The reform comes amid growing engagement between Caracas and Washington after the United States eased some sanctions on Venezuela’s oil industry, issuing a general licence that allows US energy firms to engage in oil export, storage and related activities with the Venezuelan government and state oil company PDVSA. The legislative changes are part of broader efforts to encourage foreign capital to help revive production after years of decline due to underinvestment, mismanagement and sanctions.
Rodríguez described the overhaul as a historic step toward turning Venezuela’s vast oil wealth into prosperity for its people. Critics have noted that while the reforms open the door to foreign involvement, investor confidence may remain fragile due to ongoing legal and political uncertainties.
The bill still requires formal signing and publication before it takes effect.
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