Chavismo opens up to privatization of Venezuela's oil with hydrocarbons law reform

"Debate on reforms to the hydrocarbons law began Thursday at the National Assembly, a first step towards allowing foreign capital to take part in the exploitation and commercialization of Venezuelan oil, under the watch of the United States. It marks the beginning of a new period of detente, leveraged by the oil business, which Washington negotiated with the Venezuelan government following its military attack and capture of Maduro and his wife, Cilia Flores, on January 3."

"Primary proposed modifications to the law focus on opening the doors to the oil sector's privatization and the reduction of governmental control, after years during which the Chavista regime sought to centralize the economy. Until now, joint ventures in which the Venezuelan government held a majority stake were the only way for foreign investment to enter the country's oil industry."

Legal debate on hydrocarbons law reforms began at the National Assembly to permit foreign capital to exploit and commercialize Venezuelan oil under U.S. oversight. The process follows a negotiated détente linked to oil after Washington's military attack and capture of Maduro and his wife on January 3. Proposed changes prioritize privatization and reduced government control after years of economic centralization by the Chavista regime. Previously, foreign investment only entered via joint ventures with a Venezuelan majority stake. The reform would allow private, domestically domiciled companies to participate under government contracts. The bill passed the first of two legislative debates amid opposition abstentions and procedural complaints.

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