Venezuela's National Assembly approved legislation allowing foreign and private firms to commercialise oilfields, a move awaiting final approval next week. This ends a long-standing state monopoly, potentially unlocking new investment in the country's vast reserves. The change could attract major energy companies back to a market they abandoned years ago.

For decades, Venezuela's oil sector was dominated by state-run PDVSA, which saw production collapse under sanctions and mismanagement. Opening the sector to private capital is a desperate bid to revive output, which has fallen to a fraction of its peak. International partners could bring essential technology and funding.

The reform's success hinges on political stability and clear regulatory terms. Investors will scrutinize contract security and profit-sharing models. If implemented, this could mark a pivotal shift for Venezuela's economy, though risks remain high. The global market will watch closely for the first major deals.