Venezuela eyes 2026 oil boost, interim leader calls for opposition talks

The country's interim president, Delcy Rodriguez, proposed the legislative reforms last week and it passed a first reading Thursday in parliament, which is headed by her brother.

Analysts say the reforms, expected to pass next week, were drafted under pressure from Washington after the US military raid that toppled president Nicolas Maduro on January 3.

"We had a law...that was not up to date with what we needed as an industry," PDVSA chief Hector Obregon said.

The proposed Hydrocarbons Law reforms would update the legal framework in the oil industry "to ensure that private investors can have legal certainty," Obregon said from the Puerto La Cruz refinery in eastern Venezuela.

The South American nation produces around 1.2 million barrels per day (bpd), according to authorities, and sits on about one-fifth of the world's oil reserves.

Years of mismanagement and corruption have driven production down from a peak of over 3 million bpd in the early 2000s to a historic low of 350,000 barrels daily in 2020.

If adopted, the bill would roll back decades of state control over Venezuela's oil sector, which were tightened by Maduro's late mentor, socialist firebrand Hugo Chavez, in the mid-2000s.

Reconciliation with opposition

US President Donald Trump has made no secret of his interest in Venezuela's oil. His administration has stated bluntly that it is taking over sales of the country's crude petroleum.

Rodriguez this week announced that the country had received an initial transfer of $300 million after the sale of its oil by the United States.

She also spoke Saturday about starting a dialogue with the opposition party in Venezuela to reach a "common good."

"There can be no political or partisan differences when it comes to peace in Venezuela," Rodriguez said on state television, speaking from the coastal state of La Guaira.

"Despite our differences, we must speak to each other with respect. Despite our differences, we must come together and reach agreements," she added.

The hydrocarbons bill stipulates that private companies located in Venezuela would be able to exploit oil after signing contracts, a marked difference from the state's previous dominion over the country's oil exploitation.

"The main idea behind the hydrocarbons law and its reform is for us to increase oil production," said National Assembly president Jorge Rodriguez.

"What is the primary objective? To adapt to a situation that allows us to extract the oil from the land that belongs to all Venezuelan women and men."