The Venezuelan government has unveiled a plan for comprehensive regulation of the hydrocarbon industry that effectively brings an end to the historical monopoly held by state-owned Petroleos de Venezuela SA (PDVSA). The proposal establishes transparent operational frameworks aimed at encouraging private capital to re-enter the country’s energy sector.
According to the 63-page draft, both foreign and domestic companies will gain direct access to oil refining, heavy oil upgrading, and international trade for the first time. This new regulatory framework formally repeals the Venezuelan Oil Law of 1943 and the 1969 acts. In parallel, PDVSA has already begun sending standardized contracts to international contractors to initiate formal negotiations.
The radical restructuring of the industry comes amid a regime change. The reforms followed the January ousting of Nicolas Maduro, facilitated by US intervention, and the transfer of power to interim President Delcy Rodriguez.
In response to this political transition, the US Treasury launched a three-phase program to lift oil and financial sanctions. Washington’s goal is the rapid reintegration of the Venezuelan economy into the international financial system and the stabilization of crude supplies.
In exchange for access to the fields, Caracas will enforce strict technological standards. Investors will be required to localize resources, consolidate adjacent fields into single blocks, transparently transfer data to the government, and monitor carbon emissions.
According to Elizabeth El-Khouri, an industry arbitrator, these new provisions make the implementation of enhanced oil recovery (EOR) methods a legal requirement for all projects. The Venezuelan Ministry of Oil and the Ministry of Communications have so far declined to comment on the specific timeline for the proposal’s implementation.
