Dep. Luis Stefanelli, a member of the National Assembly’s Energy and Petroleum Committee, announced June 12 that he would introduce a draft bill to discuss a new Organic Hydrocarbons Law. The projected reform aims to massify oil output and recover production capacity, in addition to transforming the sector into the spearhead for the future development of Venezuela. 

The legislator explained that “this initiative encourages the participation of private, public, or mixed companies,” and that the contracts signed so far would be honored so that Venezuelan oil would regain its internationally-competitive status. Currently, the high costs faced by the sector prevent Venezuela from competing with the output from other countries in the region such as Colombia, Brazil and Mexico, among others.

Stefanelli’s bill would create the Venezuelan Hydrocarbons Agency to support and execute state policies, and recognize the rights of former Petróleos de Venezuela (PdVSA) workers dismissed between 2002 and 2003. In the next few weeks, the Energy & Petroleum committee will present the proposal to sector employees for discussion and the opportunity to modify or amend the text if necessary.