Creates a legal basis for new private participation in oil projects: The reform changes the rules governing a previously nationalised sector, enabling new deal structures and ownership arrangements that were not permitted under the prior framework.

Ties domestic energy policy to US negotiating leverage: By meeting a stated US demand, the law strengthens the linkage between Venezuela’s oil governance and the scope of US sanctions relief and related bilateral concessions.

Signals a shift in economic policy direction under the interim government: The signing formalises a move away from strict state control toward market-oriented measures, which can reshape expectations for broader economic reforms.