Delcy Rodriguez proposes hydrocarbons reform to attract investment in Venezuela
Delcy Rodriguez presents draft reform to the Organic Hydrocarbons Law to foreign investment
The acting president of Venezuela, Delcy Rodriguez, delivered a partial draft reform of the Organic Hydrocarbons Law to the National Assembly this Thursday, aiming to more foreign investment to the country's oil sector.
During her State of the Union address, Rodriguez explained that the proposal seeks to adapt production models from the Anti-Blockade Law, such as The so-called “Chevron model,” which allowed investments of nearly $900 million through mixed capital and reinvestment of dividends. Rodriguez assured that the new investment flows will be allocated to oil fields without infrastructure or prior investment, which could reactivate strategic sectors of the country. “The intention is that the investment flows will be incorporated into new fields, where investment has never been made, and fields where there is no infrastructure,” Rodriguez said. The Anti-Blockade Law, approved in 2019, allows for the temporary suspension of certain laws when they are impossible to comply with due to foreign sanctions, in addition to establishing exceptional contracting and payment mechanisms to guarantee foreign investment.
Funds for social and technological investment
Rodriguez announced that the foreign currency from oil will be channeled into two special funds: Social Protection Fund: intended to improve workers' income and finance education, housing, and food.
In addition, a technological platform will be created to make the use of resources transparent, seeking to generate confidence among investors and the population.
Diplomacy and relations with the United States
Call for political unity
Rodriguez invited all Venezuelan political factions to collaborate to preserve the sovereignty, independence, and dignity of the country, noting that oil reform and opening up to investment are key steps to guarantee Venezuela's economic and social stability. The announcement comes less than a week after Trump hosted US and international oil companies at the White House to explore investment opportunities in Venezuela, amid tensions and sanctions between the two countries.