Venezuela's interim president, Delcy Rodriguez, announced on Monday a projected $1.4 billion windfall from upcoming reforms in the oil sector, aimed at enticing foreign investors in the wake of Nicolas Maduro's removal from power.
Investment Projections and Legislative Changes
Rodriguez, who assumed office after Maduro was overthrown by US special forces on January 3, stated that oil investments are expected to surge by 55 percent in 2025. This forecast follows the anticipated passage of a bill by parliament that will dismantle decades of stringent state control over the energy sector.
"Last year, investment totaled nearly $900 million, and for this year, $1.4 billion in investments have already been signed," Rodriguez claimed during a business address. She was speaking as part of public consultations on plans to liberalize the oil sector for private investment.
Strategic Vision for Venezuela's Oil Industry
Rodriguez emphasized the need for Venezuela to transform from holding the world's largest proven oil reserves into a production powerhouse. "We must evolve from being the country with the planet's biggest proven oil reserves to a giant in production terms," she argued, highlighting the strategic shift in policy.
International Pressure and Historical Context
The interim leader faces significant pressure from US President Donald Trump, who has advocated for American oil companies to gain access to Venezuela's rich crude deposits. Trump has supported Rodriguez's takeover from Maduro, contingent on her alignment with his agenda.
Venezuela's oil output has experienced dramatic fluctuations over the years:
- Peaked at over 3 million barrels per day (bpd) in the early 2000s.
- Plummeted to a historic low of 350,000 bpd in 2020 due to years of mismanagement and corruption.
- Rebounded to approximately 1.2 million bpd recently.
Key Provisions of the Hydrocarbons Bill
The hydrocarbons bill, currently under consideration by the National Assembly, includes pivotal changes:
- Private companies based in Venezuela will be permitted to extract oil without forming joint ventures with the state-owned PDVSA.
- This marks a departure from PDVSA's previous requirement for a majority stake in such partnerships.
Legislators approved the bill in a first reading last week and are poised to adopt it in the coming days, signaling a new era for Venezuela's oil industry.
