The BRICS TimesActing President Delcy Rodríguez signed the historic legislation within two hours of its National Assembly approval.
Venezuela is launching a massive transformation of its energy sector. On Thursday, Acting President Delcy Rodríguez signed a law that invites private companies to lead the country’s oil operations. This move is a major departure from the state-led model that long controlled the nation’s natural resources.
Venezuela holds the largest oil reserves on the planet. This new policy is the centerpiece of the Rodríguez administration. It aims to bring in the foreign capital needed to fix the country’s struggling energy industry.
The change follows the recent capture of President Nicolas Maduro by U.S. forces in Caracas. After that high-profile military operation, Rodríguez took over as the acting leader.
Rodríguez held talks with Trump before the signing
Rodríguez signed the new law just two hours after the National Assembly passed it. On the same day, she held discussions with U.S. President Donald Trump and Secretary of State Marco Rubio. Rubio recently explained to U.S. senators how America will manage Venezuela’s oil sales and financial transactions.
Rodríguez described the policy as a bridge to the future. “We’re talking about the future. We are talking about the country that we are going to give to our children,” she stated. She originally proposed these changes in early January. This happened after Trump claimed his administration would oversee the country’s oil exports.
Private companies to lead Venezuela’s oil production
In the past, the state-run company PDVSA held a total monopoly over oil sales and production. Now, private firms will take over those duties and manage oil pricing.
The law requires private companies to handle all management at their own risk and expense. They must prove they have the money and technical skills through a plan approved by the Oil Ministry. While private firms manage the work, the oil and gas reserves remain state property.
Companies can now take legal disputes to independent arbitration instead of just Venezuelan courts. The law also caps royalty taxes at 30%. The government can adjust these rates for each project based on investment needs and competition. This is the first major change to Venezuela’s oil laws since the era of Hugo Chávez twenty years ago.
