International investment for oil industry

By E.C.V. & ASOCIADOS

Venezuela’s government is ready to make legislation changes to provide international investment for a much needed oil industry. According to President Nicolás Maduro, the National Assembly would consider the reforms to allow for “new business models”.
Venezuela oil exports dropped in February after the U.S. sanctioned key trading houses and individuals that had been propping up exports of the commodity. Crude shipments fell to 418,857 barrels a day in February, a 13% drop from January, according to shipping reports and ship-tracking data compiled by Bloomberg.

Under current oil legislation passed in 2001, state company Petróleos de Venezuela (PDVSA) is required to hold a majority stake in joint ventures with foreign and private companies, and has a monopoly on crude oil marketing.

Although Maduro did not specified any details about the possible law changes, since last year Venezuela’s government has been very slowly granting control to foreign companies of certain areas of the oil industry, such as daily operations of some oil fields. Venezuela’s opposition parties have been long asking for these changes to happen and have recently issued to Congress a final version of a 42-page hydrocarbons bill reform package.