BOGOTA, Colombia 

Venezuela's National Assembly approved in its first discussion a partial reform of the Organic Law on Hydrocarbons.

The legislative initiative, spearheaded by acting President Delcy Rodriguez, came as Venezuela and the US are negotiating new terms for the sale of Venezuelan crude.

Initially presented by Rodriguez last week, the reform is poised to fundamentally restructure the backbone of the nation's oil industry. A central pillar of the document is the expanded role for private investment. Under the proposed amendment to Article 22, while the State maintains its role in primary activities, the legal framework would now accommodate joint ventures in which the State holds a majority stake, as well as private companies domiciled in Venezuela operating under primary activity contracts.

The draft law seeks to overhaul regulation of the entire value chain—from exploration and extraction to refining and marketing. Notably, the reform proposes a significant reduction in the State’s royalty share. The current 30% take on extracted hydrocarbons would be lowered to a 20% limit for private companies and 15% for joint ventures.

During the session, Congressman Orlando Camacho, chairman of the Permanent Commission on Energy and Petroleum in Venezuela's National Assembly, argued that the 2006 regulations must be modernized to address the "accelerated energy transition" and a highly competitive global market.

Parliament President Jorge Rodriguez echoed this sentiment, saying the reforms are necessary to catalyze a rapid increase in national oil production.

The legislative move has faced criticism for its lack of transparency, however. On Wednesday, opposition deputies Henrique Capriles and Luis Emilio Rondon of the Libertad parliamentary group claimed they were not briefed on the reform’s specifics. In a broadcast via the US social media company X’s platform, Capriles warned that the government is rushing the legislation while keeping the public in the dark regarding the "true scope of the oil issue" and the nature of new international agreements.

The reform was formally submitted by Rodriguez last Thursday during an accountability report delivered on behalf of President Nicolas Maduro, following his capture by US forces during a military operation on Jan. 3.

The legislative changes are unfolding as Caracas and Washington enter a transformative phase in their bilateral relationship. This shift follows the recent US military intervention and President Donald Trump’s stated intent to oversee the management and sale of Venezuelan oil.

The bill must now undergo a second debate in the National Assembly for final approval.