Venezuela’s Assembly Backs First Reading of Oil-Law Overhaul Opening PDVSA Monopoly

Overview

• Draft changes would let foreign and local companies operate fields, sell crude and keep proceeds even as minority partners to PDVSA, with access to international arbitration for disputes.
• The proposal introduces new contract models that place operational risk on operators and allows targeted cuts to royalties and taxes for special or capital‑intensive projects.
• Government allies pushed the bill through a first reading after formal debate began on January 22, while opposition lawmakers said they lacked access to the full text.
• Legal experts warn of possible conflicts with the 1999 Constitution and related statutes, and any broad reentry by oil majors would still require U.S. Treasury licensing under sanctions.
• The push follows a U.S.–Venezuela arrangement covering up to 50 million barrels, and Saudi Arabia’s finance minister said the Venezuela situation is unlikely to have a significant near‑term market impact.