Venezuelan President Rodriguez Signs Oil Reform Law Amid Easing of US Sanctions

Venezuela’s Interim President Signs Reform Bill Allowing Increased Privatization in Nationalized Oil Sector

Venezuela’s interim president, Delcy Rodriguez, has signed a reform bill into law, paving the way for increased privatization in the country’s nationalized oil sector. The legislation was passed by the National Assembly earlier this week and is seen as a key demand from the Trump administration.

The bill will give private firms control over the sale and production of Venezuelan oil, and require legal disputes to be resolved outside of Venezuelan courts. This change is aimed at making the country’s oil market more appealing to foreign petroleum firms.

The reform also includes provisions that cap royalties collected by the government at 30 percent. The Trump administration has announced that it will loosen some sanctions restricting the sale of Venezuelan oil, allowing limited transactions by the government and state-owned PDVSA.

The bill was signed into law during a ceremony attended by state oil workers, with Rodriguez stating that it is a positive step for Venezuela’s economy. Her brother, Jorge Rodriguez, who heads the National Assembly, also expressed support for the reform.

The Trump administration has been seeking to pressure President Rodriguez to open up the country’s oil sector to outside investment since the US military’s abduction of former president Nicolas Maduro and his wife on January 3. The administration has warned that failure to comply with its demands could result in significant consequences.

Venezuela nationalized its oil sector in the 1970s, and the current reform is seen as a significant shift towards increased privatization. The bill will now be implemented, allowing for greater foreign investment in the country’s oil industry.

Source: Al Jazeera