Venezuela moves to open oil sector to US firms, Trump hails ‘strong’ leadership

Nevin Al Sukari - Sana'a - View of the refinery El Palito in Puerto Cabello, Carabobo state, Venezuela on January 22, 2026. — AFP pic

CARACAS, Jan 23 — Venezuelan lawmakers yesterday gave their initial backing to plans to throw open the oil sector to private investors, paving the way for the return of US energy majors — a key demand of US President Donald Trump.

Less than three weeks after the US ouster of Nicolas Maduro, MPs endorsed on first reading a bill allowing private companies to independently engage in oil exploration and extraction.

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

The bill has been promoted by Maduro’s former deputy, acting president Delcy Rodriguez, who has overseen a lightning-fast thaw in ties with Washington since taking the helm.

Yesterday, Trump called her leadership “very strong” and said the US is already taking a cut of Venezuela’s oil.

“Our country will become richer and that means our taxes will be going down and they will do better — Venezuela’s going to do better than they’ve ever done,” Trump said.

Another change unfolded in Caracas yesterday, with the US confirming Laura F. Dogu — a former ambassador to Nicaragua and Honduras — as the new charge d’affaires to Venezuela.

That was seen as a step toward restoration of full diplomatic ties.

Warming relations 

Caracas and Washington severed relations after Maduro’s first widely disputed claim to reelection in 2019.

Within days of Maduro’s January 3 capture in Caracas, US diplomats travelled to the Venezuelan capital to discuss reopening the embassy.

Trump has boasted that he is working “really well” with Rodriguez, who was vice president and petroleum minister — a position she still holds — in Maduro’s fiercely anti-US government.

Yesterday, a senior US official said Rodriguez would soon visit the US, despite still being under Washington sanctions.

Maduro was toppled after a monthslong US pressure campaign and flown to New York with his wife to face trial on drug trafficking charges.

Rodriguez has appeared ready to comply with Trump’s open interest in Venezuela’s oil.

“We are in a process of dialogue, of working with the US, without fear,” she said Wednesday.

Lost opportunities 

This week she ploughed US$300 million from a US-brokered oil sale into propping up the ailing national currency, the bolivar.

The mere anticipation of the injection drove down the price of dollars, the currency in which many Venezuelans conduct their business.

But economists warned that true relief from spiralling prices would require a sustained influx of dollars — which in turn requires foreign investment.

Venezuela has the world’s largest proven reserves of oil but output has fallen from over three million barrels per day in the early 2000s to around 1.2 million today.

The energy reform bill before parliament ends a Chavez-era requirement for private companies to form joint ventures with state-owned oil firm PDVSA, which insisted on holding a majority.

“Having oil underground serves no purpose,” parliament speaker Jorge Rodriguez, the interim president’s brother, told lawmakers yesterday, urging them to back the reform.

“Every day that passes is a day lost and a day of (oil reserves) that we cannot use.”

To win the support of both Venezuelans and Washington, Delcy Rodriguez needs to quickly show improvements in the economy and signal an end to a decade of worsening repression under Maduro.

In the past two weeks, her government has slowly freed dozens of political prisoners from the hundreds behind bars.

Yesterday, authorities released the son-in-law of opposition figure Edmundo Gonzalez Urrutia, who was serving a 30-year sentence on terrorism charges.

Gonzalez Urrutia, in exile in Spain, is widely considered the rightful winner of Venezuela’s 2024 election.

His son-in-law Rafael Tudares was arrested by masked men in January 2025 while heading to school with his two children.

Since Maduro’s ouster, Trump has ramped up pressure on another Latin American arch-foe, communist Cuba, a longtime Venezuela ally.

Trump has vowed to cut off all oil supplies to Cuba, which has relied for years on heavily subsidised Venezueluelan oil and cash to remain afloat.

Cuban President Miguel Diaz-Canel said yesterday he spoke by telephone with Rodriguez to express his “support and solidarity”.— AFP