Caracas, Venezuela – The National Assembly of Venezuela on Wednesday unanimously approved a sweeping legislative reform that significantly opens the country's oil industry to greater foreign participation, marking one of the most substantial changes to the sector in more than two decades.
The new law, sponsored by acting President Delcy Rodríguez and fast-tracked through the legislative process, relaxes state control over hydrocarbon exploration, production, and management. It allows foreign companies to operate oilfields at their own risk and expense, including the possibility of majority stakes in joint ventures, while still requiring partnership with the state-owned Petróleos de Venezuela (PDVSA).
Until now, Venezuela's oil sector has been heavily dominated by PDVSA under the framework established by former President Hugo Chávez in the early 2000s. The reform effectively dismantles many of the restrictive clauses that previously limited foreign involvement to minority stakes and required strict government oversight.
Addressing supporters at a ceremony following the vote, acting President Delcy Rodríguez described the legislation as a “historic step” that would transform the country's vast oil wealth into tangible prosperity for Venezuelans. “The Venezuelan people are the rightful owners of these resources,” she said. “This law will help us maximise profits from our reserves and ensure that oil revenues serve the needs of our citizens rather than remain trapped in inefficiency and isolation.”
National Assembly leader Jorge Rodríguez, the acting president's brother, echoed her remarks, stating that the reform would “boost energy production, unlock undeveloped oilfields, and translate increased output into improved well-being for the population.” He emphasised that the law maintains Venezuela's sovereignty over its natural resources while recognising the need for capital, technology, and expertise from international partners.
The legislation still requires formal signing by the acting president and publication in the Official Gazette before it takes effect. Once enacted, it is expected to enter into force immediately.
The reform arrives amid a dramatic shift in Venezuela's political and economic landscape following the capture of former President Nicolás Maduro by US forces at the beginning of January 2026. Since assuming the role of acting president, Delcy Rodríguez has signalled a willingness to cooperate with Washington and seek normalisation of relations.
US President Donald Trump has repeatedly expressed interest in seeing American companies invest in Venezuela's oil sector, which holds the world's largest proven reserves (estimated at over 300 billion barrels). In recent weeks, Trump has described Venezuela's oil potential as “massive” and suggested that renewed US involvement could help stabilise global energy markets while benefiting both nations.
On the same day the reform was approved, the US Treasury Department issued a general license authorising American companies to engage in certain oil-related activities with the Venezuelan government. The license covers the export, sale, storage, and transportation of crude oil and petroleum products, marking a significant easing of long-standing sanctions.
In a separate announcement, President Trump stated that the United States would begin “opening up” commercial airspace above Venezuela, reversing earlier warnings that had effectively discouraged international airlines from operating in the country's skies. Trump described the move as a sign of “strong control over the situation” and a step toward normalising travel and trade.
Jorge Rodríguez attributed the airspace decision to his sister's diplomatic efforts, calling it a “positive outcome of peace-driven diplomacy by the presidency.”
Despite the optimistic tone from Caracas and Washington, some oil industry executives remain cautious. Exxon Mobil CEO Darren Woods, speaking at a recent energy conference, described Venezuela as “uninvestible” in its current condition due to political uncertainty, infrastructure decay, and lingering sanctions risks.
Earlier this month, sources indicated that the Trump administration was considering the deployment of private military contractors to protect oil and energy infrastructure in Venezuela if investments proceed. No official confirmation of such plans has been issued.
The reform and sanction relief signal a potential turning point for Venezuela's oil industry, which has seen production plummet from over 3 million barrels per day in the early 2000s to around 700,000 barrels per day in recent years due to mismanagement, underinvestment, sanctions, and corruption.
Acting President Rodríguez has framed the changes as essential for economic recovery, arguing that foreign capital and technology are necessary to rehabilitate PDVSA's aging fields and infrastructure. She has promised that any new contracts will include strict transparency clauses and provisions to ensure that revenues benefit the Venezuelan people.
Opposition figures and independent analysts have expressed concern that the rapid opening to foreign investment could lead to new forms of dependency or corruption if proper oversight mechanisms are not established. Some have called for international monitoring of contracts and revenue flows.
The National Assembly's unanimous vote reflects the current political alignment under the transitional government, with opposition parties largely sidelined or co-opted following the events of early January.
As Venezuela navigates this new phase, the success of the reform will depend on the government's ability to attract credible investors, rebuild trust with international markets, and demonstrate tangible improvements in living standards for ordinary citizens.
