Venezuela just did something that would have been unthinkable two years ago. The country’s interim government signed amendments to the Organic Hydrocarbons Law on January 29-30, 2026, effectively dismantling PDVSA’s stranglehold over the nation’s oil industry.
What the reforms actually change
Private companies can now hold minority stakes in joint ventures and exercise technical and operational management over those ventures. Private producers will also be able to commercialize their own output and keep the proceeds independent of PDVSA’s control.
Government royalties have been capped at 30% under the new framework. The oil ministry’s contracting authority has been expanded, and the reforms explicitly allow for asset transfers and outsourcing away from PDVSA.
The political backdrop
