Venezuela is preparing to open the way for the private sector to invest in oil

Venezuela intends to open the way for the private sector to invest in oil, according to a draft law approved by Parliament in the first reading, amid indications of the normalization of relations between Caracas and Washington with the United States appointing a new list of duties for its embassy.

This fundamental reform, which requires approval in the second reading, comes three weeks after the United States militarily ousted President Nicolas Maduro, and his former deputy, Delcy Rodriguez, assumed the reins of the acting presidency.

The draft law is expected to be approved in the coming days, especially since the existing authorities in Venezuela enjoy a majority in Parliament, after the opposition boycotted the 2025 legislative elections.

This amendment is seen by Venezuela, which has the largest proven oil reserves in the world, as an additional step on the path to normalizing relations with Washington, which have been severed since 2019, and which are accompanied by a blockade on oil exports from Venezuela.

US President Donald Trump did not hide his desire to exploit Caracas’ oil, and his willingness to work with Rodriguez as long as it did not conflict with Washington’s interests.

The oil sector was subject to nationalization in Venezuela, and investment in it was only allowed for the public sector, or for partnerships with external parties under which the state had a majority share.

The draft law notes that “private companies registered” in Venezuela may be able to exploit Venezuelan oil after signing contracts.

Parliament Speaker Jorge Rodriguez, the acting president’s brother, said: “There is no benefit from oil in the ground.

What good does it do to say that we have the largest reserves in the world unless we can increase production? “We have to do (this reform) now.”

Caracas’s oil production currently amounts to 1.2 million barrels per day, according to the authorities. It remains much lower than the peak level (more than three million barrels) achieved at the beginning of the millennium.

Analysts confirm that reforming the oil sector law is a requirement for American companies wishing to obtain guarantees before investing in exploration and extraction.

Trump recently reiterated that he is working “very well” with Rodriguez, who was Maduro’s deputy.

The two countries agreed to hold discussions on resuming relations after the fall of Maduro, as the White House announced its intention to invite the acting president to visit Washington, and the United States also appointed a new list of duties for its embassy in Venezuela.

The name of Chargé d’Affaires Laura F. appeared on the website of the embassy in Caracas. Dogo, who was her country’s ambassador to Nicaragua and Honduras.

The Chargé d’Affaires heads the diplomatic mission in the absence of the Ambassador. Dogu will replace John McNamara, who has served since the beginning of February 2025 as the US Chargé d’Affairs to Venezuela from neighboring Colombia.

McNamara, along with other American diplomats, visited Caracas days after Maduro’s ouster “to conduct a preliminary assessment of the possibility of gradually resuming operations” at the embassy.

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Concessions

The term of acting Venezuelan President Delcy Rodriguez can last for six months before new elections are held according to the constitution, and she has so far made several concessions to US President Donald Trump, who does not hide his desire for Venezuelan oil.

As part of the rapprochement steps, Rodriguez announced the release of political prisoners, but the releases are taking place very slowly, as only less than 200 out of about 800 political prisoners have been released, according to the “For Penal” non-governmental organization.

Among those released is prominent prisoner Rafael Todares Bracho, the son-in-law of Edmundo Gonzalez Urrutia, the opposition candidate who confirmed his victory in the 2024 presidential election against Nicolás Maduro.