Venezuela Opens Oil Industry to Foreign Firms as Trump Threatens Tariffs on Cuba Oil Suppliers

Venezuela has passed a sweeping law reform that allows foreign companies to participate directly in its oil industry, a strategic move that aligns with US President Donald Trump’s push for greater American investment in the sector.

The legislation, approved unanimously by the National Assembly and backed by acting President Delcy Rodríguez, permits international firms to operate oilfields at their own cost and risk, breaking the long-standing near-monopoly of state-owned Petróleos de Venezuela (PDVSA).

“This law allows us to make a historic leap, turning our oil reserves—the largest on the planet—into the greatest benefit for our people,” Rodríguez declared at a public event marking the approval. National Assembly leader Jorge Rodríguez, her brother, added that the move will “boost the energy sector, promoting oil production in undeveloped fields.”

Venezuela sits atop the world in proven oil reserves. The reform is intended to attract foreign investment and maximize profits from these resources, particularly as Washington pressures Caracas to open its market.

The law’s passage coincides with Trump signing an executive order threatening new tariffs on any nation that “directly or indirectly provides oil to Cuba,” escalating tensions in the Caribbean. The legislation will take effect once it is formally signed by Rodríguez and published.

Analysts say the move could reshape Venezuela’s oil landscape, potentially increasing production and creating new opportunities for foreign firms, while also highlighting the geopolitical stakes in the region.

Keywords: Venezuela oil reform, Delcy Rodríguez, PDVSA, foreign oil investment, Trump Cuba tariffs, Venezuelan oil industry