"CARACAS, Venezuela Venezuela's legislature advanced a bill on Thursday to loosen state control over the country's vast oil sector in the first major overhaul since the late socialist leader Hugo Chavez nationalized parts of the industry in 2007. The legislation would formally break decades of state command over some of the world's largest oil reserves, create new opportunities for private companies to invest and establish international arbitration for investment disputes."
"Following the U.S. capture of former President Nicolas Maduro earlier this month, the Trump administration has ramped up pressure on acting President Delcy Rodriguez and other allies of the ousted leader to invite greater investment from U.S. energy companies in Venezuela's flagging oil industry. A draft of the proposed legislation, a copy of which was seen by The Associated Press, represents a stark retreat from the resource nationalism at the heart of Venezuela's socialist-inspired revolution."
Venezuela's legislature advanced a bill to loosen state control over the oil sector, marking the first major overhaul since Hugo Chavez's 2007 nationalizations. The measure would break decades of state command over vast reserves, permit private companies to independently operate oil fields, market crude, and collect revenues through contracts with state oil firm Petroleos de Venezuela. The draft grants operators comprehensive management at their own cost and risk and allows companies to commercialize portions of production after governmental obligations. The bill offers international arbitration for disputes and permits cutting royalties from 30% to as low as 15% and slashing extraction taxes to attract investment.
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