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Venezuela Passes Oil Law Overhaul Opening Fields to Private and Foreign Operators

The shift coincides with U.S. sanctions relief intended to clear financing channels for investment.

Overview

  • Parliament approved a sweeping reform of the hydrocarbons law that opens the sector to private and foreign capital, with enactment pending the signature of interim president Delcy Rodríguez.
  • The overhaul removes PDVSA’s mandatory majority stake, lets private companies operate fields autonomously, and permits direct marketing of Venezuelan crude.
  • Investor terms include broad exemptions from income tax, VAT, customs duties and local levies, plus an integrated hydrocarbons tax of up to 15% of gross revenues and access to international arbitration.
  • The U.S. Treasury issued a general license easing oil‑sector sanctions by authorizing transactions involving the Venezuelan government and PDVSA, allowing U.S. companies to buy and transport Venezuelan crude.
  • Il Post, citing Senate testimony by Secretary of State Marco Rubio, reports U.S. authorities have begun selling Venezuelan oil abroad and transferred $300 million from a $500 million sale, with monthly revenue budgets required and funds routed via a third‑country account in Qatar.