Delcy Rodriguez (Photo: MIGUEL GUTIERREZ/ EPA)

On January 29, acting President of Venezuela Delcy Rodriguez signed a law opening up the country's oil sector to private investors, in accordance with US demands. This decision abolishes the long-standing state monopoly on oil production, reports Associated Press.

Prior to that, only joint ventures associated with the state-owned oil company Petróleos de Venezuela SA (PDVSA) could operate in the Venezuelan oil sector. It has always retained a controlling stake.

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The reform is aimed at transforming the oil sector, which is Venezuela's "engine," into a platform for foreign investment. They are needed to revive the industry, which has long been in decline.

According to the new law, a private company "assumes full management of the activity at its own expense, responsibility and risk after confirming its financial and technical capacity through a business plan approved by the Ministry of Oil." At the same time, the state retains ownership of hydrocarbon fields.

Rodriguez signed the law in front of oil workers and ruling party supporters less than two hours after it was approved by the National Assembly.

At the same time, the US Treasury Department has officially started the process of easing economic sanctions against Venezuelan raw materials imposed by the first US presidential administration Donald Trump. The agency has expanded the opportunities for American energy companies to operate in the South American country, which has the world's largest proven crude oil reserves.

Rodriguez introduced the measure less than a month after fascination dictator Nicolás Maduro during the US military operation in Caracas. The agency notes that this decision may become the defining policy of its government.

  • on January 6, 2026, analysts said that the change of leader in Venezuela will not lead to to a sharp increase in the supply of Venezuelan oil on the market.
  • on January 7, Energy Secretary Chris Wright said that the United States will sell Venezuelan oil "indefinitely". According to him, the proceeds from the sale of oil from Venezuela will be accumulated in US-controlled accounts and used "for the benefit of the Venezuelan people."
  • Trump said that expectations for trillions of dollars for the United States from oil from Venezuela.
  • on January 15, Venezuela announced reform of the oil industry to attract investment.
  • on January 28, the US Secretary of State Marco Rubio said that the United States ready to use forceto force Venezuela to maximize Rodriguez's cooperation.