Venezuela succumbs to US threats?, opens oil sector to foreign investment

In a major overhaul of the oil industry, Venezuela’s congress has approved a bill that opens the nation’s oil sector to privatisation. The bill which was signed into a law by acting President Delcy Rodríguez on Thursday is largely being seen as a move succumbing under pressure from the US to open up its oil sector for foreign private investment.

Under the new law private companies will have greater control over oil production and sales. Taxes will be eased and independent arbitration of disputes allowed, while the state will have control over oil production.

A private company “will assume full management of the activities at its own expense, account, and risk, after demonstrating its financial and technical capacity through a business plan approved by”, said the oil industry.

ALSO READ: US attack on Iran: Raids inside Iranian territory, similar to Venezuela, among Trump's new options on table, claims report

However, analysts are of the view that the new law lacks clarity and that the changes, while welcome, are not sufficient to deliver the reforms sought by the US.

Trump threat worked?

After signing the bill Rodríguez said “We’re talking about the future. We are talking about the country that we are going to give to our children."

The change was proposed by Rodríguez early this month, after Trump said his administration would take control of Venezuela’s oil exports and try to revamp the crumbling oil sector in the country by inviting foreign investment.

Rodríguez proposed the changes earlier this month, after Trump said his administration would take control of Venezuela’s oil exports and revitalize the ailing industry by luring foreign investment.

Less than a month back the US had attacked Venezuela capital, Caracas and captured the then-President Nicolás Maduro and his wife.