Market News

Tiago Rogero South America correspondent

Venezuela’s acting president has signed into law a bill making significant changes to the country’s oil sector after pressure from the US to open it up to foreign private investment.

The new hydrocarbons law promises to give private companies control over oil production and sales, ease taxes and allow for independent arbitration of disputes, while largely maintaining state control over oil production.

Analysts remain cautious about the law’s practical application, arguing that the text lacks clarity and that the changes, while welcome, are insufficient to deliver the overhauls sought by the US as it attempts to revive Venezuela’s battered oil industry.

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“We’re talking about the future. We are talking about the country that we are going to give to our children,” said Delcy Rodríguez, the acting president, who signed the law shortly after its approval by congress.

The congressional leader, Jorge Rodríguez – who is the acting president’s brother – celebrated the law’s approval. “I congratulate the people of Venezuela. Only good things will come after the suffering. These are the good things, for everyone, that we must build together, regardless of how we each conceive the prosperity of our republic,” he said.

Earlier on Thursday, Delcy Rodríguez held a phone call with Donald Trump, who disclosed the conversation during his cabinet’s first meeting of the year. Trump said he was about to “open up all commercial airspace over Venezuela”. Since the US president, while ramping up pressure on the dictator Nicolás Maduro, declared Venezuela’s airspace “closed in its entirety”, at least eight international airlines have suspended operations in the South American country.

Trump said big US oil companies were already on the ground in Venezuela carrying out site assessments for potential operations. He said they were “scouting it out and picking their locations, and they’ll be bringing back tremendous wealth for Venezuela and for the United States”.