Overview
- The National Assembly approved the hydrocarbons reform in a first debate and sent it to a second reading, with leaders signaling an accelerated timetable.
- The draft would let private and foreign firms operate fields independently, market their own crude, and receive cash proceeds through contracts with PDVSA, scrapping the long-standing state-majority requirement.
- Investor protections include access to international arbitration, options to lease or cede operational assets, and new participation contracts in which operators assume full cost and risk.
- Fiscal terms would be eased by allowing royalty cuts from 30% to as low as 15% and by reducing extraction taxes to entice investment in underdeveloped fields.
- The push is driven by interim president Delcy Rodríguez and Assembly chief Jorge Rodríguez, comes after a U.S. operation that captured Nicolás Maduro earlier this month according to the reports, and coincides with Washington’s stated control over Venezuelan oil sales and a reported $300 million transfer under a $500 million arrangement, while investor caution over past expropriations and sanctions persists.