Introduction

The first nationalization affecting the oil industry in the Bolivarian Republic of Venezuela ("Venezuela" or the "Republic") took place in 1976, but major legal changes have recently been enacted that have restricted private investors' participation in this industry. Prior to the nationalization of August 29, 1975, the Venezuelan oil industry was managed on a concession basis, whereby private companies explored for and produced hydrocarbons, paying royalties and taxes to the Government. After the nationalization, Petróleos de Venezuela, S.A. ("PDVSA"), a company owned by ...