Venezuelan Lawmakers Approve Sweeping Overhaul of Oil Sector

In January 2026, Venezuela's National Assembly approved a significant overhaul of its oil sector legislation. Prompted by U.S. pressure following the replacement of Nicolás Maduro with Delcy Rodríguez, the new laws aim to attract foreign investment by granting foreign oil companies greater operational control and potentially reducing royalties and taxes. The legislation reverses aspects of the 2007 nationalization, allowing international dispute resolution and diminishing the role of the state-owned oil company, Petróleos de Venezuela. While some investors desired more extensive privatization, the changes are expected to increase oil production. Experts believe this move is a major step forward for Venezuela's oil industry.