Venezuela proposes oil reform to enable US investment

BOGOTA, Colombia

Venezuela's Acting President Delcy Rodriguez submitted a proposal Thursday to Congress to reform the hydrocarbons law.

Rodriguez said the proposed bill seeks to integrate the flexible production models found in the "anti-blockade law" into the permanent Organic Law on Hydrocarbons. The goal, she noted, is to provide legal security for investment flows into untapped oil fields -- territories that historically have seen no development and currently lack industrial infrastructure

For decades, Venezuelan law has mandated that state-owned Petroleos de Venezuela (PDVSA) must hold a majority stake in any joint venture with international partners.

The push for a new legal framework arrives at a critical juncture, as US investors have been lobbying for less restrictive access to Venezuela’s energy sector following the recent change in leadership.

In a significant development for the regional economy, the US confirmed the completion of its first purchase of Venezuelan crude under the new administration, valued at $500 million. The transaction is part of a broader $2 billion energy agreement finalized between Caracas and Washington earlier this month.

Rodriguez, who was sworn in Jan. 5 following the ouster of Nicolas Maduro, also addressed the possibility of a diplomatic mission to Washington. She assured lawmakers that if she were required to travel to the US, she would represent the Venezuelan people "standing tall" and with sovereign dignity.

She denounced the US for continuing to limit Venezuela’s broader market opportunities, blaming a "naval blockade" for stifling the nation’s economy. The blockade, initiated by the US in September, eventually led to the capture of Maduro and his wife on Jan. 3 in a US military operation.