The law means that foreign investors will be able to take advantage of the country's vast oil resources. The decision is in line with demands that the US government has made on Caracas since the abduction of former leader Nicolás Maduro by US soldiers.
The oil industry was nationalized by the Maduro regime and its predecessor, Hugo Chávez.
Venezuela's oil industry and the state-owned company PDVSA has previously been affected by targeted sanctions from the United States.
Only good things now follow after all the suffering, says Jorge Rodríguez, the speaker of parliament and brother of Venezuela's interim president Delcy Rodríguez - former vice president under Maduro.
