Proposed Changes To Venezuela’s Organic Oil Law

(Energy Analytics Institute, 7.Oct.2020) — Venezuela’s National Assembly has submitted proposed changes to the country’s Organic Hydrocarbons Law, which it views as fundamental legislation and extremely important in any recovery of the hydrocarbon industry and economy, according to documents seen by Energy Analytics Institute.

Proposed changes to the law are positive and target attracting investments from international and national investors. However, it is unclear how investors will be able to participate in activities given ongoing US sanctions, which were imposed in early 2019 with aim at ousting standing Venezuelan President Nicolas Maduro.

Proposed modifications to the law aim to address immediate opportunities in the Venezuelan crude oil sector as well as the potential of the country’s natural gas industry and proposed paths towards each sector’s transformation.

“Proposed modifications aim to establish new structural elements in terms of dynamism, transparency, flexibility and reliability, all necessary for the establishment of an [attractive] investment climate,” according to the document.


By Piero Stewart. © Energy Analytics Institute (EAI). All Rights Reserved.