The Venezuelan National Assembly has made a profound modification to the hydrocarbons law with the aim of boosting the energy industry. energy industry national energy industry. This regulatory adjustment allows private and mixed companies to operate with unprecedented operational independence, empowering them to manage their own assets and commercialize their production outside the direct control of the state-owned PDVSA.
The measure follows the presentation of a proposal by the interim presidency of Delcy Rodríguez, aimed at attracting an injection of capital that could reach US$100 billion for the reconstruction of the sector.
Venezuelan oil law and commercial autonomy
The new legal framework establishes that private producers will be able to manage their revenues in cash and trade directly in international markets. This mercantile power breaks with a two-decade model of operational and financial centralization, providing a legal security that foreign investors considered necessary to resume activities in the country.
The reform also enables the outsourcing of operations and the transfer of assets that previously belonged exclusively to the State, allowing even minority shareholders to make strategic decisions on production.
Tax incentives and Washington’s role
The legislative transformation includes a reduction of the income tax for specific energy projects and the elimination projects and the elimination of various additional levies to incentivize competitiveness. However, a new tax on hydrocarbons has been introduced to hydrocarbons The final regulation of this tax is under development.
This structural change occurs in a context of sanctions relief by the Donald Trump administration, allowing the signing of direct supply agreements. The Ministry of Petroleum has assumed the power to approve and modify contracts in an accelerated manner, expediting the entry of large corporations such as Chevron, Exxon Mobil and ConocoPhillips into the new Venezuelan energy ecosystem.
Source: Reuters
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