Venezuela oil reform encourages fast investment


US President Donald Trump is pushing US oil companies to invest massively in the country’s dilapidated industry to reverse decades of mismanagement and underinvestment. — Reuters

HOUSTON: A proposed reform of Venezuela’s oil law is enough to encourage companies working in the country to expand and for some new entrants to begin investing, but deeper reforms would be necessary to attract the US$100bil the United States says is required to revamp the nation’s energy sector, foreign and local executives and lawyers say.

The United States has taken control of Venezuela’s oil exports and revenue following a military incursion to capture President Nicolas Maduro earlier this month, and a naval blockade to stop oil shipments on sanctioned vessels since December.

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