Venezuela Debates Oil Overhaul to Protect U.S. Interests


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Venezuela's legislature is debating an oil industry 
overhaul to attract significant investment from U.S. and other international 
energy firms following the ouster of President Nicolas Maduro and the 
installation of an interim administration under White House scrutiny, the 
Associated Press and other media outlets reported on Thursday (1/22).

   Here are the main takeaways of the debate:

The proposed legislation allows private companies to assume the "comprehensive 
management of the execution of the activities, at its sole cost, expense and 
risk," enabling them to independently operate fields and "directly 
commercialize" production.International arbitration clauses are included in the 
bill to protect foreign assets from future government seizures, addressing 
long-standing legal fears held by major U.S. corporations.Tax incentives within 
the bill could slash royalty rates from 30% to 15% for complex projects, making 
expensive Venezuelan heavy crude ventures more financially attractive.    




(c) Copyright 2026 DTN, LLC. All rights reserved.