Venezuela plans to establish two dedicated funds to manage oil revenues and overhaul its energy legislation, aiming to improve fiscal transparency and attract foreign investment. The reforms, unveiled by Vice President Delcy Rodríguez, include the creation of a stabilization fund and a sovereign wealth fund with initial capital of $2 billion each.
- Two new oil revenue funds established: $2 billion each for stabilization and sovereign wealth
- Energy law reforms to enhance contract transparency and reduce licensing delays
- Projected $1.8 billion in annual returns by 2030 if oil prices remain above $70/barrel
- Reforms aim to improve fiscal transparency and attract foreign investment
- National Assembly review scheduled for March 2026
- Initial implementation targeted for mid-2026
Venezuela has announced a sweeping fiscal initiative to restructure its oil revenue management, introducing two new state-run funds to handle crude income. The stabilization fund, designed to buffer government spending during oil price volatility, will receive an initial allocation of $2 billion. A second sovereign wealth fund, intended to reinvest surplus revenues into long-term national projects, will also be seeded with $2 billion. Both funds will operate under a new regulatory framework to ensure accountability and oversight. The move marks a significant update to Venezuela’s outdated energy legal structure, which has not been substantially revised since the 1990s. The proposed amendments will clarify licensing procedures, introduce transparency requirements for contracts with international oil firms, and establish clearer mechanisms for profit-sharing. These changes are expected to streamline operations and reduce bureaucratic delays that have historically deterred foreign investment. The government projects that the new funds could generate up to $1.8 billion in annual returns by 2030, assuming oil prices stabilize above $70 per barrel. With Venezuela holding the world’s largest proven oil reserves—estimated at 303 billion barrels—the reforms are seen as critical to unlocking fiscal sustainability. Analysts note that successful implementation could improve the country’s creditworthiness and open doors for international financing. Markets reacted cautiously, with Venezuela’s sovereign bonds seeing a modest 2.3% uptick in trading volume. Investors are monitoring how the funds will be managed and whether independent audits will be enforced. The reforms will be submitted to the National Assembly for review in March 2026, with implementation expected to begin by mid-2026 if approved.