Venezuela’s National Assembly has approved a reform of the country’s hydrocarbons law that will allow private companies, including foreign firms, more autonomy in the country’s lucrative oil sector.
Once the law is signed off by the country’s interim president, it is expected to pave the way for more foreign investment in the oil industry.
US President Donald Trump has been pushing US oil companies to invest in Venezuela’s vast oil reserves, despite decades of mismanagement, under-investment and a still uncertain political climate.
However, one of the barriers for investors had been the existing framework that gave the state oil company PDVSA majority control over operating oil projects.
Shortly after Venezuelan MPs signed the law, the US eased its sanctions on the country’s oil industry giving US companies more ability to operate in Venezuela.
The assembly, dominated by lawmakers who are allies of former president Nicolás Maduro, passed the bill with the backing of interim President Delcy Rodríguez, who assumed office after Maduro was seized in a US military operation earlier this month.
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