Venezuela circulates draft of new oil law regulations for companies
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Industry News
First reported by Bloomberg News, the 63-page document defines the technical, operational, fiscal, and regulatory control provisions for foreign and local companies seeking to develop the nation’s extensive oil and gas fields.
The proposed framework represents a fundamental restructuring of Venezuela’s energy sector by setting explicit standards for private enterprises to operate within segments previously monopolized by state-owned Petróleos de Venezuela SA (PDVSA), such as oil refining, upgrading, and international trading.
In doing so, the draft formally abrogates the country’s historic 1943 oil law and its subsequent 1969 regulations. Concurrently, PDVSA has started distributing a separate contract model to international drillers to kick off formal operational negotiations.
The regulatory steps follow the enactment of a sweeping new hydrocarbons law in January, which took place shortly after the United States government forcibly removed former President Nicolas Maduro from power, allowing Vice President Delcy Rodriguez to assume the interim presidency.
In tandem with the political transition, the U.S. Treasury began lifting severe oil and financial sanctions as part of a coordinated three-phase stabilization, economic recovery, and political transition program designed to reintegrate Venezuela into the international financial system.
The newly circulated text details novel mandates for the domestic industry, covering localized resource utilization, oilfield unitization, data reversion to the state, and greenhouse gas tracking.
According to an industry assessment posted by Miami-based energy specialist and arbitrator Elisabeth Eljuri, clauses within the text strongly indicate that "it’s mandatory to implement enhanced recovery and secondary recovery in every project."
Neither Venezuela’s oil ministry nor its information ministry responded to requests for comment regarding the final timeline for the regulatory implementation.
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