Venezuela’s National Assembly has approved a reform to open the oil sector to foreign companies, allowing firms to operate oilfields at their own risk and expense. Backed by Acting President Delcy Rodríguez, the measure aims to boost production and direct oil revenues to social programs. The vote came as the U.S. Treasury eased some oil sanctions and amid reports the U.S. has discussed using private contractors to protect energy assets. The law still requires signature and publication before taking effect.
Venezuela Approves Law Opening Oilfields to Foreign Firms as U.S. Eases Sanctions
A Petroleos de Venezuela SA (PDVSA) oil pumpjack on Lake Maracaibo in Cabimas, Zulia state, Venezuela, on November 17, 2023. - Gaby Oraa/Bloomberg/Getty Images
Venezuelan lawmakers have approved a high-profile reform designed to open the country’s oil sector to foreign companies, a move presented by Caracas as part of a response to growing U.S. pressure. The change would loosen the near-monopoly of state oil company Petróleos de Venezuela (PDVSA) by allowing foreign firms to operate and develop oilfields at their own risk and expense.
What the Law Does
The reform, backed publicly by Acting President Delcy Rodríguez, permits foreign companies to manage and invest in oilfields under contractual terms that transfer operating risk and costs to the investors. The National Assembly approved the measure unanimously in a second reading; it still requires the acting president’s signature and official publication before it takes effect.
Political and Economic Context
Officials framed the law as a way to boost production, unlock underdeveloped fields and channel oil revenues into social and economic programs. “This law allows us to make a true historic qualitative leap to turn those oil reserves, the largest on the planet, into the greatest happiness a people can have,” Acting President Delcy Rodríguez told supporters at a celebratory event. National Assembly leader Jorge Rodríguez — her brother — described the measure as a tool to transform energy production into public well‑being.
“This instrument will boost the energy sector, promoting oil production in undeveloped fields and transforming it into well‑being for the Venezuelan people,” Jorge Rodríguez wrote on Telegram.
U.S. Reaction And Security Concerns
The vote coincided with a U.S. Treasury decision to relax certain sanctions on Venezuela’s oil sector by issuing a general license that authorizes specific activities involving export, purchase, sale, storage and transportation of Venezuelan oil. Separate media reports have suggested the Trump administration has discussed using private military contractors to protect energy infrastructure — an idea that some industry executives say raises legal and reputational concerns.
Some oil executives remain cautious about investing. The CEO of Exxon Mobil reportedly described Venezuela as “uninvestible” at a White House meeting held shortly after the political changes earlier this year.
Airspace And Diplomatic Signals
On the same day, President Trump said he had informed Delcy Rodríguez that the U.S. would be "opening up" commercial airspace above Venezuela — a statement framed as part of broader diplomatic and safety assurances. Venezuelan officials credited the announcement to ongoing diplomatic efforts by the acting presidency.
What Comes Next
For the law to come into force it must be signed and published. If implemented, the reform could attract foreign capital and technical expertise to Venezuela’s massive oil sector, but any meaningful inflow of investment will depend on the final contract terms, legal protections, enforcement of agreements and how international companies assess political and security risks.
Note: This article reflects the reported developments at the time and incorporates official statements and public reports. Questions remain about implementation, investor appetite and how international actors will respond.
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