Venezuela's acting president signs oil industry overhaul to ease state control

Acting President Delcy Rodríguez signed a law opening Venezuela's oil sector to private control, reversing a two-decade state-centered policy; the signing coincided with U.S. steps to ease oil sanctions and expand access for U.S. energy firms.

Acting President Delcy Rodríguez signed legislation that opens Venezuela's oil sector to private control and potential privatization. Lawmakers in the National Assembly approved the energy industry overhaul earlier the same day. The article notes the change came less than a month after a reported seizure of then-President Nicolás Maduro in a U.S. military attack. The signing coincided with U.S. Treasury actions to ease oil sanctions and expand the ability of U.S. energy companies to operate in Venezuela. Key facts: - The new law allows private companies to control the production and sale of oil and provides for independent arbitration of disputes. - The revised law sets a royalty cap of 30% and allows the executive branch to set percentage terms for individual projects based on investment and competitiveness. - The legislation removes the requirement that disputes be settled only in Venezuelan courts, a change investors have sought to reduce risk of expropriation. - The U.S. Treasury began easing oil sanctions and expanded access for U.S. energy firms as the bill was passed. - Opposition lawmaker Antonio Ecarri urged adding transparency and accountability measures, including a public website for funding and related information; ruling-party lawmaker Orlando Camacho said the reform "will change the country's economy." - Some oil workers and ruling-party supporters celebrated the bill's approval inside the legislative palace. Summary: Lawmakers and officials describe the reform as a major policy shift that could alter Venezuela's economic framework and aims to reassure foreign investors by allowing private contracts and independent arbitration. The change coincided with steps by the United States to ease oil-related sanctions and broaden U.S. firms' access. Undetermined at this time.