Venezuelan lawmakers have approved a sweeping reform that opens the countrys oil industry to greater foreign participation, a move widely seen as an effort by Caracas to meet the demands of US President Donald Trump. The new law, backed by acting President Delcy Rodrguez, loosens state control over the sector and allows foreign companies to manage oilfields at their own risk and expense. Until now, Venezuelas oil industry has been largely dominated by the state-owned firm Petrleos de Venezuela (PDVSA). Since the US captured President Nicols Maduro at the beginning of January, Washington has repeatedly made clear its desire for American companies to invest in Venezuelas vast oil sector. Venezuela holds the largest proven oil reserves in the world, and Rodrguez said the reform would help the country maximise profits from those resources. Addressing supporters at an event celebrating the approval of the law, Rodrguez described the reform as a historic step that would transform the countrys oil wealth into prosperity for Venezuelans, whom she called the rightful owners of the nations resources. National Assembly leader Jorge Rodrguez, the acting presidents brother, echoed her remarks, saying the law would boost energy production, unlock undeveloped oilfields and translate increased output into improved well-being for the population. The National Assembly unanimously approved the reform in a second reading. The legislation still requires formal signing and publication before it comes into effect. The move comes amid growing US interest in Venezuelas energy assets. Earlier this month, sources indicated that the Trump administration was considering the use of private military contractors to protect oil and energy infrastructure in the country. Despite this, some oil executives remain cautious. The chief executive of Exxon Mobil has described Venezuela as uninvestible in its current condition. The laws approval coincided with a partial easing of US sanctions on Venezuelas oil industry. The US Treasury issued a general license allowing American companies to engage in certain oil-related activities with the Venezuelan government, including the export, sale, storage and transportation of crude. This marked another step in the gradual relaxation of restrictions since Venezuelas acting government signaled a willingness to cooperate with Washington. On the same day, President Trump announced that the US would be opening up commercial airspace above Venezuela, following earlier warnings that had discouraged airlines from operating in the countrys skies. Trump said American citizens would soon be able to travel to Venezuela safely, citing what he described as strong control over the situation. Jorge Rodrguez attributed the development to his sisters diplomatic efforts, describing it as a positive outcome of what he called peace-driven diplomacy by the presidency. The post Venezuelan Lawmakers approve new law opening Oil Industry to Foreign companies appeared first on Linda Ikeji Blog.
