Overview
- The National Assembly approved in first discussion a partial reform of the Organic Hydrocarbons Law under an urgency procedure.
- The draft would end PDVSA’s mandatory majority stake, allowing domestic and foreign companies to operate fields independently and sell crude directly.
- Provisions under debate include participation contracts, royalty reductions on some projects to as low as 15%, and access to international arbitration.
- PDVSA president Héctor Obregón said production is projected to rise 18% in 2026, after output reached about 1.2 million barrels per day in December 2025.
- The bill still needs final legislative approval and could face constitutional challenges, with some reports pointing to coordination with U.S. officials.