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Trading and distribution
How are oil and gas resources traded in your jurisdiction and what (if any) regulations and procedures apply to oil and gas sales, distribution and marketing activities, both nationally and internationally?
Trading in petroleum substances, whether by way of sale, distribution or marketing, can be conducted under a licence from the Ministry of Oil and Gas only after coordination with the Council for Financial Affairs and Energy Resources in accordance with the Oil and Gas Law (Royal Decree 8/2011). Natural gas producers must generally allocate their gas production, excluding gas used for operations, to satisfy the local market demand, as dictated by the Ministry of Oil and Gas. This means that rights holders must sell their natural gas production as a priority to the local markets, as determined by the Ministry of Oil and Gas.
Is oil and gas pricing regulated in your jurisdiction?
The Ministry of Oil and Gas sets out pricing for oil and gas products after considering market conditions and the political environment. The Ministry of Oil and Gas follows no specific criteria when pricing oil and gas.