Venezuela Eyes Major Oil Law Reform to Boost Foreign Investments

Venezuela plans a significant overhaul of its hydrocarbons law, allowing foreign and local companies greater autonomy in oil production and sales. The proposed reform aims to attract investment and support a $100 billion reconstruction plan. Key changes include royalty rate reductions and independent arbitration for disputes.

Venezuela is on the threshold of a major transformation in its oil industry with a proposed reform to the hydrocarbons law. This change would permit both foreign and local companies to manage oilfields independently, a radical shift from the current regulations.

Interim President Delcy Rodriguez has put forward the reform proposal expected to revamp OPEC country's oil sector by altering former President Hugo Chavez's significant oil legislation. The move is set to be debated in the National Assembly after a recent significant oil supply agreement between Caracas and Washington.

The reform is part of Washington's broader $100 billion plan to reconstruct Venezuela's energy sector. The plan promises reduced royalties for special projects and offers a route to independent arbitration to resolve disputes, aiming to lure back investors after years of nationalization under Chavez.

(With inputs from agencies.)