Venezuela to Discuss Oil Revamp That Will Allow Foreign Drillers

Venezuela’s legislature on Thursday is set to discuss oil reforms that, if implemented, will unwind the state monopoly of the industry and let private companies produce and sell crude from the country’s vast reserves.

The proposed changes to the country’s landmark hydrocarbon law would loosen the role of state-run Petroleos de Venezuela SA, giving private businesses greater leeway to drill and market oil while lowering their taxes. The reforms, described by four people with knowledge of the matter, also would let companies settle legal disputes through international arbitration proceedings, rather than local courts.

Oil royalties would be reduced from ...