Venezuela adopts sweeping oil regulations to open sector to private firms

Acting President Delcy Rodríguez signed a 29‑page set of oil regulations published in the Official Gazette, ending the decades‑long dominance of state oil company PDVSA over Venezuela’s oil industry. The rules cover the entire value chain—from wellhead to fuel pump—and introduce fiscal terms and taxes that reflect asset risk, while explicitly expanding private‑sector involvement in refining, marketing and distribution. The regulations are the first comprehensive oil norms since 1943 and are described by Rodríguez as a historic step toward using the country’s reserves for development.

The reforms follow a broader US‑backed interim administration’s effort to attract foreign investment after years of mismanagement and sanctions that left PDVSA cash‑strapped. PDVSA had already ceded managerial control to Chevron and other private operators in 2022, but the new framework aims to broaden participation and revive production, which has risen from under 600,000 barrels per day in 2021 to about 1.2 million barrels per day.

Energy analysts note that while the regulatory opening is intended to lure capital, the country’s refineries will require substantial refurbishment, and the success of the reforms will depend on investors’ confidence that returns can outweigh the risks.