Deputy Pérez Abad: Partial Reform of the Hydrocarbons Law will reverse damage from oil sabotage

Published at: 22/01/2026 06:40 PM

The proposals contemplated in the draft Partial Reform of the Organic Hydrocarbons Law, whose first discussion was approved by the National Assembly (AN), this Thursday, January 22, “are vital to monetize reserves and reverse the damage caused by oil sabotage,” said Deputy Miguel Pérez Abad.

During the regular session held at the Federal Legislative Palace, in his speech, Pérez Abad recalled the devastating impact of the 2002-2003 Oil Strike, an unprecedented action by the Venezuelan right, which generated losses of more than 13 billion dollars.

He added that this paralysis, driven by a criminal association between opposition sectors and business leaders, caused the closure of approximately 22% of small and medium-sized industries, raising poverty to 48%, in addition to causing a drop in Gross Domestic Product (GDP) of 24% in that catastrophic scenario.

The deputy raised the historic need to update the energy legal framework to overcome the economic consequences of attacks against industry and to move towards a phase of massive investment that would allow the country's social development.

He stressed that the current global energy matrix has changed and requires a technological evolution that the law enacted, two decades ago, does not fully contemplate.

He also noted that Venezuela has 270 billion barrels certified in the Orinoco Oil Belt, but warned that, in 88 years, only 2.8% of this resource has been exploited.

He explained that, even raising production to five million barrels a day, 90 years of constant exploitation would be required, making it imperative to capitalize and monetize this crude oil through incentives that attract fresh capital.

Pérez Abad broke down the financial needs for the next five years, estimating that Venezuela requires an investment of more than 100 billion dollars to strengthen the sector.

Of this amount, approximately 80 billion dollars must be allocated to drilling, exploitation and distribution processes, while some 20 billion dollars are essential for logistics infrastructure, including the construction of a new port to alleviate the saturation of the José Complex and increase storage capacity.

He also stressed that the effort must be twofold, since it involves the recovery of mature fields or “brownfields” and the development of virgin fields or “greenfields”.

He stressed that the objective is to raise current production from 1.2 million barrels to 1.5 million in the short term, a challenge that he describes as a major task due to the financial blockade that has kept the nation out of international credit circuits for the last decade.

Regarding international financing, he clarified that operating companies depend on the trust of global banks to leverage projects against proven assets.

In this regard, he denounced that international propaganda and sanctions hinder access to capital, so the legal reform seeks to provide a framework of transparency and legal certainty that convinces investors that Venezuela is a viable and profitable destination.