Venezuela's opposition drafts an energy reform in order to increase foreign pressure on Maduro

According to sources, and according to a summary seen by the.

Opposition leaders see the re-election Donald Trump as a chance to increase pressure on President Nicolas Maduro. This month, Trump's administration canceled an important license for U.S. Oil Major Chevron in Venezuela, citing the lack of electoral reforms by President Nicolas Maduro.

The reform of Venezuela's hydrocarbon laws may appeal to oil companies from around the world, including those based in the United States.

The plan includes shrinking PDVSA, while also offering foreign companies Venezuelan oil and natural gas fields and refineries as well as midstream assets. PDVSA stakes will be available for private bids.

The proposal states that "Venezuela opens its energy sector to investors around the world and offers unprecedented investment opportunities, as well as a clear framework based on rules for the private sector's leadership."

The United States, along with other Western countries, disputed the official election results in Venezuela last year. This allowed Maduro to win a second term. The opposition published the voting results showing that candidate Edmundo Gonz won.

At the CERAWeek Conference in Houston, a delegation of opposition leaders Maria Corina Machado (left) and Edmundo Gonzales (right) attended.

According to an overview of the document, it outlines plans to increase oil production above 3 million barrels a day (bpd), which has not been seen for 15 years.

Venezuelan crude production averaged 920,000 barrels per day last year.

The new proposal allows existing PDVSA partners to switch to more attractive terms of contract, including a smaller take for the Government.

The proposal states that international standards for investment protection will be incorporated into Venezuela's legal framework.

The nationalization of the oil industry by former president Hugo Chavez two decades ago, as well as debt defaults have led to dozens and dozens of lawsuits. Some of these are still in progress. Citgo Petroleum, a U.S. refiner based in Venezuela, is the target of many creditors.

Venezuela has the largest reserves of crude oil and natural gas in Latin America, but little investment has been made due to political instability, nationalist policies and U.S. sanction.

After what they called electoral fraud, the opposition has been struggling to find a way towards the restoration democracy in Venezuela. The long-standing Venezuelan political crisis is not being resolved quickly. (Reporting and Editing by Marguerita Chy)

(source: Reuters)