Delcy Rodríguez Signs Oil Reform Into Law Acting President Delcy Rodríguez signed the oil‑privatization bill on January 30, 2026, after the National Assembly approved it earlier that day, ending more than two decades of strict state control over the sector [1][2]. The legislation authorizes private companies to own and operate production assets, a reversal of Hugo Chávez’s 2006 nationalization framework. Rodríguez framed the reform as a legacy project for future generations, emphasizing economic renewal [1].

U.S. Treasury Issues Targeted Sanctions Relief The U.S. Treasury Department released restricted licenses on the same day, permitting U.S. energy firms to conduct oil‑related activities in Venezuela while barring entities from China, Russia, Iran, North Korea and Cuba [1][2]. The licenses align with a plan announced by Secretary of State Marco Rubio and reflect a calibrated approach to pressure rival states while encouraging foreign investment. Treasury officials stressed that the relief is conditional and subject to ongoing compliance monitoring.

Privatization Provisions Include 30% Royalty Cap and Arbitration The new law caps royalties at 30% of gross production and grants the executive branch authority to set project‑by‑project tax rates [1][2]. It also shifts oil‑related dispute resolution from Venezuelan courts to independent arbitration panels, addressing investor concerns about politicized judiciary outcomes. These mechanisms aim to make the market more attractive to hesitant foreign firms after years of expropriation risk.

Political Leaders Demand Transparency and Anti‑Corruption Safeguards Ruling‑party oil committee head Orlando Camacho hailed the reform as “a change for the country’s economy,” while opposition deputy Antonio Ecarri called for a public website to track contracts, revenues, and expenditures [1][2]. Rodríguez reiterated the government’s commitment to “the future” and promised oversight, though critics warned that privatization alone would not eradicate entrenched graft. The debate underscores the political stakes surrounding the sector’s opening.

Historical Context Highlights Shift From Chávez’s Nationalization Chávez’s 2006 hydrocarbons law had nationalized foreign oil assets and made PDVSA the dominant revenue source, a policy that later contributed to severe economic decline and the exodus of over 7 million Venezuelans since 2014 [1]. The current reform represents a dramatic policy pivot, seeking to revive production by courting private capital after years of sanctions‑driven contraction. Analysts note that the success of the shift will depend on sustained U.S. support and investor confidence.