CARACAS: Venezuela’s acting president, Delcy Rodríguez, has signed into law a sweeping reform of the country’s oil industry that opens the sector to private and foreign investment, marking a decisive break from decades of strict state control under socialist rule. The legislation was approved by the National Assembly on Thursday and signed by Rodríguez soon after.
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The new hydrocarbons law allows private companies to manage oil production and sales at their own expense and risk, subject to approval by the oil ministry, while ownership of the country’s vast hydrocarbon reserves remains with the state. It also introduces independent arbitration for contractual disputes, removing a requirement that all disagreements be resolved only in Venezuelan courts — a change long sought by international companies weary of political interference.
Venezuela approves oil sector privatisation in major policy shift
➡️ https://t.co/2EOpNijs1x pic.twitter.com/WmSHmrrLjE— FRANCE 24 (@FRANCE24) January 30, 2026
Acting President Rodríguez described the reform as a forward-looking measure intended to revive Venezuela’s long-struggling economy, which has been battered by falling production, mismanagement and years of sanctions. Lawmakers and oil sector leaders said the overhaul could transform the economy by attracting much-needed capital and expertise.
The reform comes amid extraordinary geopolitical shifts following the U.S. capture of former President Nicolás Maduro earlier this month during Operation Absolute Resolve. The Trump administration has eased some oil sanctions, issuing licences to allow U.S. companies to trade and refine Venezuelan crude and outlining mechanisms to oversee how Venezuela’s oil revenues are spent.
While the changes are intended to lure international investors — including major U.S. energy firms — analysts caution that legal uncertainty, lingering political instability and corruption concerns could limit the pace of investment. Opposition lawmakers have called for stronger transparency provisions and accountability measures as part of the reform.
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The law represents one of the most significant policy shifts in Venezuela’s oil sector since the nationalisation of the industry under Hugo Chávez more than two decades ago.