politics
National Assembly unanimously approves reform of the Hydrocarbons Law
During the ordinary session this Thursday, the Venezuelan parliament unanimously approved the Partial Reform of the Organic Hydrocarbons Law.
TL;DR
- The Venezuelan parliament unanimously approved the Partial Reform of the Organic Hydrocarbons Law.
- The reform was preceded by public consultation with industry workers and received over 120 written proposals.
- Article 1 outlines the law's aim to regulate hydrocarbon activities under principles of energy sovereignty, public ownership, and environmental protection.
- Article 8 allows for alternative dispute resolution mechanisms in contracts, alongside competent courts.
- Article 25 grants the Ministry of Hydrocarbons the power to grant primary activity rights to operating companies and allows for transfer of ownership of necessary assets, with provisions for revocation.
- Article 34 mandates presidential authorization for joint ventures and notification to the National Assembly for oversight, excluding them from public procurement laws but requiring transparent mechanisms.
- Article 35 details conditions for joint ventures, including a 25-year maximum duration with renewal options, pre-emptive rights for majority shareholders, and reversion of assets to the Republic.
- The reform is described as a significant economic transformation for Venezuela's future.