Don’t miss the full story, whose reporting from Regina Garcia Cano at The Associated Press is the basis of this artificial intelligence-assisted article.
Venezuelan lawmakers have opened debate on legislation that would significantly loosen state control over the oil sector, marking the first major overhaul since Hugo Chávez nationalized parts of the industry in 2007.
Some key facts:
• Venezuela’s legislature began debate Thursday on a bill to reduce state control over the country’s oil sector in the first major overhaul since 2007.
• The legislation would allow private companies to invest in the oil industry and establish international arbitration for investment disputes.
• Following the U.S. capture of then-President Nicolas Maduro, the Trump administration has increased pressure on acting President Delcy Rodríguez to open the sector to U.S. energy companies.
• The bill represents a sharp departure from former President Hugo Chávez’s resource nationalism, which treated oil wealth as state property.
• Private companies would be allowed to independently operate oil fields, market their own crude output and collect cash revenues while remaining minority partners on paper.
• The legislation would enable companies to settle legal disputes through international arbitration rather than being limited to local courts.
• The bill maintains a 30% royalty rate but allows the government to reduce royalties and taxes to as low as 15% for expensive or difficult oil projects.
• Many investors remain concerned about financial and legal risks, remembering asset seizures when Chávez nationalized parts of Venezuela’s oil industry in 2007.
READ MORE: Venezuela opens debate on an oil sector overhaul as Trump seeks role for U.S. firms
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