The 2026 Orgánica Hydrocarbons Law: A Fundamental Reorientation of Venezuela’s Oil Policy
Background and Historical Relevance In January 2026, Venezuela enacted a new Orgánica Hydrocarbons Law that introduces a significant structural transformation in the organization of its oil industry. This reform constitutes a decisive departure from the extensive state-reservation framework that, in various configurations, had defined the sector since the nationalization of 1975. The legislation dismantles the model of broad state exclusivity over primary hydrocarbon activities and commercialization, thereby creating wider avenues for direct private sector involvement than previously permitted. From a historical standpoint, the evolution of Venezuela’s petroleum regime may be summarized through five defining stages: The concession system (1943), established under the 1943 Hydrocarbons Law. Nationalization (1975), implemented through the Law Reserving the Hydrocarbons Industry to the State. The Oil Opening (1994–1998), grounded in Article 5 of the 1975 Law. Statization and compulsory mi...