Venezuelan lawmakers have given initial approval to legislation aimed at opening the country’s oil sector to private investors, signalling a major shift in energy policy following the removal of former president Nicolás Maduro.
The bill, endorsed on first reading on Thursday, would allow private companies to independently explore and extract oil, reversing decades of state dominance in the sector. If passed in a second reading, the reforms would dismantle controls imposed during the mid-2000s under former president Hugo Chávez, who tightened state ownership through the national oil company PDVSA.
The proposed changes are expected to pave the way for the return of US and other international energy companies, a move long sought by Washington and seen as central to reviving Venezuela’s ailing oil industry.
The bill has been championed by acting president Delcy Rodríguez, a former vice-president and petroleum minister, who has overseen a rapid thaw in relations with the United States since assuming office following Maduro’s ouster earlier this month.
Speaking on Thursday, US President Donald Trump praised Rodríguez’s leadership and said the United States was already benefiting from Venezuelan oil output.
“Our country will become richer and that means taxes will go down,” Trump said. “Venezuela is going to do better than they’ve ever done.”
The diplomatic reset was underscored by Washington’s confirmation that Laura F Dogu, a former US ambassador to Nicaragua and Honduras, has been appointed as charge d’affaires in Caracas, widely viewed as a step towards restoring full diplomatic relations.
Caracas and Washington cut ties in 2019 following Maduro’s disputed re-election. Since his removal, US diplomats have returned to Venezuela to discuss reopening the American embassy and expanding cooperation, particularly in the energy sector.
A senior US official said Rodríguez is expected to visit Washington soon, despite remaining under US sanctions.
Venezuela holds the world’s largest proven oil reserves, but production has collapsed from more than three million barrels per day in the early 2000s to around 1.2 million today, largely due to underinvestment, sanctions and mismanagement.
Under the proposed reform, private firms would no longer be required to form joint ventures with PDVSA or cede majority control to the state rules that many foreign investors had long cited as a barrier to entry.
“Having oil underground serves no purpose,” parliamentary speaker Jorge Rodríguez, the acting president’s brother, told lawmakers. “Every day that passes is a lost opportunity.”
This week, the interim government channelled $300 million from a US-brokered oil sale into supporting the national currency, the bolívar. The move briefly strengthened the currency, though economists warned that lasting stability would depend on sustained foreign investment and increased oil revenues.
Rodríguez has also sought to reassure international partners by easing political restrictions. Dozens of political prisoners have been released in recent weeks, including the son-in-law of opposition figure Edmundo González Urrutia, widely regarded by supporters as the legitimate winner of Venezuela’s 2024 election.
The energy reforms come amid shifting regional dynamics. President Trump has vowed to cut off oil supplies to Cuba, a long-time ally of Venezuela that has relied heavily on subsidised Venezuelan crude. Cuban President Miguel Díaz-Canel said he had spoken with Rodríguez to express his support.
Analysts say the success of Venezuela’s energy revival will depend on how quickly legal reforms are implemented and whether international oil companies regain confidence in the country’s regulatory and political stability.
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