Venezuela announces partial reform of the organic hydrocarbons law
The National Assembly of Venezuela approved in its first reading, last Thursday, January 22, the Draft Partial Reform of the Organic Hydrocarbons Law with the aim of adapting the legal framework for the oil sector to current economic conditions and addressing the challenges of the international energy market
Last Thursday, January 22, the Venezuelan Parliament approved in its first reading the Draft Partial Reform of the Organic Hydrocarbons Law.
According to the country’s National Assembly, “the draft maintains the status of an organic law, but proposes relevant changes aimed at modernizing the oil model.”
Although the draft was approved, it must still undergo a public consultation phase. After that process, it moves to a second discussion, conducted article by article, before being approved and enacted before formally entering into force.
Parliament made it clear that the main objective of the reform is to “modernize the legal framework for the oil sector to adapt it to the new economic reality and changes in the international energy market,” focusing on creating conditions that will allow for “an accelerated increase in crude oil production.”
Furthermore, the sector seeks to incentivize foreign investment in strategic projects, as well as “incorporate more flexible business models, taking as a reference mechanisms linked to the Constitutional Anti-Blockade Law.”
The National Assembly made it clear that redefining the role of the State within the operational structure of the oil sector is fundamental.
M.Pino
Source: hinterlaces
(Reference image source: Aleksey Malinovski on Unsplash)
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