Venezuela's National Assembly provisionally approved a hydrocarbons reform that would allow foreign firms to manage oil fields at their own risk, a move presented as meeting U.S. demands. The White House has announced $500 million in crude sales, with about $300 million reportedly received. Lawmakers also backed a law to strengthen business protections, while rights groups say only a small fraction of political detainees have been freed. Ambassador Laura F. Dogu was named Chargé d’Affaires for U.S. affairs in Venezuela.
Venezuela Moves to Open Oil Sector to Foreign Firms as Washington Pushes for Access
The Petroleos de Venezuela SA Bajo Grande Refinery at the Paraguana Refinery Complex on Lake Maracaibo in Maracaibo, Zulia state, Venezuela, on November 17, 2023. - Gaby Oraa/Bloomberg/Getty Images
Venezuela's National Assembly on Thursday gave initial approval to a proposed reform that would make it easier for foreign oil companies to operate in the country's petroleum sector — a move framed by Caracas as part of an effort to respond to demands from the United States.
For nearly two decades, much of Venezuela's oil industry has been run through the state-controlled company PDVSA, with foreign companies largely limited to joint ventures. Under the hydrocarbons law change announced last week by Acting President Delcy Rodríguez, foreign companies would be permitted to manage oil fields at their “own risk and cost,” National Assembly member Orlando Camacho said.
The reform bill received provisional backing but must clear a second round of debate in the National Assembly before it can become law.
Why Caracas Says Change Is Necessary
“Oil beneath the ground is useless,” National Assembly President Jorge Rodríguez — the acting president's brother — said, arguing that Venezuela's vast reserves will remain of little value unless legal and operational barriers are removed to accelerate production.
Opening access to U.S. oil companies would address one of the Trump administration's central requests amid heightened U.S. pressure on Caracas following recent political developments. The White House has announced agreements for the sale of $500 million in Venezuelan crude; Rodríguez said on Tuesday that about $300 million of that sum had been received.
Business Protections and Industry Caution
Lawmakers also backed a separate measure intended to strengthen legal protections for businesses — a demand U.S. oil executives have said is essential for any substantial investment. Nevertheless, industry sources have told CNN that many American executives remain hesitant to move quickly into Venezuela because of security concerns and uncertainty about the country's long-term political and economic environment.
“The appetite for jumping into Venezuela right now is pretty low. We have no idea what the government there will look like,” one well-placed industry source told CNN.
Venezuela holds more proven oil reserves than any other nation, but companies say they need long-term certainty about the operating environment before committing to remote, multi-decade projects.
Political Prisoners And Diplomatic Notes
Washington has also demanded that Venezuela release political prisoners. Two weeks ago, the government announced it would free a “significant number” of detainees as a gesture toward the U.S.; rights organizations say only a fraction of those reportedly detained have been released.
The Justice, Encounter and Forgiveness organization reported verifying 167 releases since January 8 and documenting 949 people still held for political reasons. Foro Penal reported 143 releases and a current tally of 777 political prisoners. Venezuelan authorities maintain they have freed more people than rights groups claim but have not disclosed the identities or locations of those released.
In a separate development, a senior State Department official confirmed to CNN that Ambassador Laura F. Dogu has been appointed Chargé d’Affaires for the U.S. Office of Foreign Affairs for Venezuela.
Gonzalo Zegarra and Matt Egan contributed to this report.
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