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Venezuela Oil Group Seeks Incentives to Lure More Foreign Money

  • Group says royalties should be reduced amid low oil prices
  • Recommends single foreign exchange for oil sector transactions

Venezuela’s main hydrocarbon association has proposed measures aimed at attracting more investment from international oil companies as prices drop to the lowest in more than a decade.

Incentives would include reducing royalties and extraction taxes to 20 percent from 30-35 percent, applying a single exchange rate for the oil industry and granting more decision-making powers to joint venture partners. The measures, presented yesterday to the President’s National Council for Productive Economy, are needed to support oil-sector investments, according to a document outlining the proposals.