To Draw Investors, Venezuela Overhauls Its Oil Industry

As the bill was being passed, the Treasury Department officially began to ease sanctions on Venezuelan oil that once crippled the industry and expanded the ability of US energy companies to operate in the South American nation, the first step in plans outlined by Secretary of State Marco Rubio the day before. The moves by both governments on Thursday are paving the way for yet another radical geopolitical and economic shift in Venezuela. "We're talking about the future. We are talking about the country that we are going to give to our children," Rodríguez said. She proposed the changes in the days after President Trump said his administration would take control of Venezuela's oil exports and revitalize the ailing industry by attracting foreign investment.

The legislation promises to give private companies control over the production and sale of oil and allow for independent arbitration of disputes. Rodríguez's government expects the changes to serve as assurances for major US oil companies that have hesitated to return to the volatile country. Some of those companies lost investments when the ruling party enacted the existing law two decades ago to favor Venezuela's state-run oil company, Petróleos de Venezuela SA. The revised law would modify extraction taxes, setting a royalty cap rate of 30% and allowing the executive branch to set percentages for every project based on capital investment needs, competitiveness, and other factors.