Venezuela’s interim president’s oil law reform to break with Chavez model

Venezuela's parliament is advancing a reform of its Hydrocarbons Law to loosen state control over the oil industry and increase private sector involvement. The proposal follows the abduction of former President Maduro and a $500 billion energy agreement with the U.S., which seeks to influence Venezuela's oil sector. The reform breaks with the Chavez-era nationalization by allowing private companies to directly commercialize oil, open foreign bank accounts, and potentially manage joint ventures even with minority stakes. It also allows private subcontracting for oil extraction and introduces flexible royalty payments, potentially as low as 15%, to attract investment. The bill aims to provide legal safeguards through independent dispute resolution.

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