International Oil Firms Lobby for Venezuelan Hydrocarbon Law Reforms

International oil companies are urging changes to Venezuela's hydrocarbon law to allow free export of oil and reduce government takes. They aim to facilitate a $100 billion reconstruction of the country's oil industry but face challenges due to U.S. sanctions and unclear legal frameworks.

International oil companies are advocating for changes to Venezuela's hydrocarbon law, aiming to secure the right to freely export oil produced in the country. This move comes as they seek to overcome legal hurdles and sanctions impeding a $100 billion reconstruction plan for Venezuela's oil industry.

These companies propose modifications that would maintain PDVSA as the major stakeholder while granting foreign partners control over their share of production. This change seeks to challenge current legal restrictions that allow PDVSA to control oil sales and deposits, which have become unmanageable due to U.S. sanctions.

Venezuela's interim president and oil minister, Delcy Rodriguez, announced a proposal to Congress for reforming the hydrocarbon law, which includes controversial and opaque contracts signed under President Maduro's administration. These reforms could align Venezuela's oil legislation with international standards, promoting foreign investment.

(With inputs from agencies.)