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Venezuela Reportedly Pledges International Arbitration Route to Court Foreign Energy Majors

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Venezuelan Oil Minister Paula Henao confirmed at a Houston industry conference on Tuesday that forthcoming energy regulations will end decades of state monopoly and allow international arbitration, to spur foreign investment into the country's oil sector, according to media reports.

Henao said Venezuela will imminently publish detailed regulations to operationalize its landmark hydrocarbons reform.

Speaking at a conference hosted by the American Association of Petroleum Geologists outside Houston, Texas, Henao confirmed that final, 63-page regulations will allow for international arbitration to resolve contract disputes, the reports said.

The guarantee addresses a critical, long-standing demand from foreign operators seeking legal certainty before committing investment capital to the South American nation.

Draft versions circulating among market participants indicate that private energy companies will finally be permitted to obtain independent operating licenses for heavy crude oil processing, refining, and international trading, according to the reports.

The immediate operational focus centers on securing critical field equipment, including wellheads, gas compressors, frequency converters, and chemical supplies necessary to restore aging infrastructure, it noted.

With major European players like Repsol and Maurel & Prom already outlining plans to resume drilling at prominent blocks like Urdaneta West next year, the upcoming publication of the regulations in Venezuela's official gazette is widely viewed as a needed signal for a major influx of foreign energy capital.

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