A commission of Venezuela’s National Assembly has received more than 80 proposals from politicians, lawyers and energy associations seeking changes to a reform of the country’s main oil law, sources close to the talks said, a blow for lawmakers rushing to have the reform approved next week.
Interim President Delcy Rodriguez introduced the proposed sweeping reform earlier this month, following a 50-million-barrel oil supply deal between Caracas and Washington, and encouraged lawmakers to approve it so the country can boost output and promote foreign investment after 25 years of strict nationalization.
Partners of state company PDVSA and potential new investors see the reform as necessary, but lawyers and experts have warned about contradictions, vague language, loose regulation and the need to change other related legislation to effectively grant autonomy to private producers and reduce royalties and taxes.
The reform was approved by the National Assembly in a first vote last week and a period of public comment began on Monday. The legislature’s energy commission must now complete a report on all suggestions before submitting a text for final vote, expected next week.
Some former government officials and opposition lawmakers have complained about the short time set to discuss the reform, especially since proposed changes are profound and complex. Some of them, including a former oil minister, have said the reform is unconstitutional.
A portion of the criticism has also come from the ruling socialist party, sources said.
At an event at PDVSA’s Caracas headquarters on Monday, Rodriguez said a particular oil contract model – previously introduced by President Nicolas Maduro, who used it to negotiate with small producers in recent years – would secure some $1.4 billion in investment this year, up from $900 million last year.
That production-sharing model is included in the reform. But many oil executives and experts believe that a wider, more durable reform is needed to secure the $100 billion in investment U.S. President Donald Trump has said the country could receive after Washington’s capture of Maduro.
Washington has said it would relax sanctions on the country to promote the investments. However, only a couple of licenses to trading houses for exporting Venezuelan oil have been granted, while U.S. companies including major Chevron remain waiting for authorizations to expand business.
(Reporting by Reuters; writing by Marianna Parraga, editing by Alexandra Hudson)