Summary
Venezuela’s parliament has moved forward with a proposal to change how the country’s oil industry is run, allowing more private companies to get involved. This move follows changes after the abduction of former President Nicolas Maduro and aims to attract investment by reducing the state's direct control established under former President Hugo Chavez.
Key Facts
- Venezuela’s parliament is working on a law to allow more private sector involvement in the oil industry.
- The proposal came after former President Nicolas Maduro was taken by the United States on January 3.
- The law would change rules set by Hugo Chavez, allowing private companies to sell oil directly.
- It allows banks to open accounts in different currencies and countries.
- Private companies could manage technical aspects of oil projects, even though the state company PDVSA keeps a majority stake.
- The law reduces royalties from 30% to as low as 15% to encourage investment.
- New legal protections for private companies include options like mediation and arbitration in case of disputes.
- The proposal sparked debate as it was not shared publicly until shortly before its announcement.
