Venezuela Opens Oil Sector to International Dispute Resolution

Venezuela’s hydrocarbons framework now permits international dispute resolution for oil-sector contracts, as announced by Oil Minister Paula Henao on May 19. The move follows draft regulations circulated May 16–17 that grant the Ministry of Hydrocarbons authority to set project-by-project royalty and tax rates within 30% and 15% caps, while opening refining, upgrading and trading to private firms. The 63-page draft, which must still be published in the Official Gazette, also allows the ministry to sign contracts without National Assembly approval and coincides with the U.S. Treasury’s phased lifting of sanctions. PDVSA has begun distributing separate contract models to international drillers. The latest provision aims to reduce political risk and attract foreign investment, though regulatory discretion may still limit near-term inflows for assets linked to WLDOIL.