On 30 January 2026, acting President Delcy Rodríguez enacted a new hydrocarbons law just hours after it was approved by Venezuela’s National Assembly. The legislation, widely seen as a capitulation to Washington’s demands, loosens state monopoly rules dictating how foreign firms can operate in the nation with the world’s largest proven oil reserves.

Under the reform, private companies are no longer restricted to limited joint ventures with the state oil giant PDVSA. Instead, they may take full operational control of oil production and sales, provided they demonstrate technical and financial capacity under plans approved by the Venezuelan oil ministry. The law also reduces tax burdens and allows independent arbitration to resolve disputes, a long-standing demand from foreign firms wary of Venezuela’s politicised courts.

Although the state retains ownership of hydrocarbon reserves, the overhaul effectively dismantles the industry’s socialist era framework. Royalties are capped, and future contracts can be negotiated with far greater freedom than under the previous law.

Congressional leader Jorge Rodríguez, who is also the acting president’s brother, welcomed the vote, calling it a “historic achievement” that will bring prosperity to Venezuelans and “good things” after years of hardship.

However, analysts remain cautious. Critics warn that the law’s legal uncertainties, its rushed passage with minimal public consultation, and enduring institutional weaknesses could blunt its impact and fail to attract the sustained investment needed to revive Venezuela’s oil sector.

The reforms come amid a broader thaw in U.S.–Venezuelan relations: Washington has eased key sanctions and signalled its intent to allow American oil companies back into Venezuela, a stark reversal after years of punitive measures.