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Trading and distribution

Regulation

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?

According to the Organic Hydrocarbons Law, a state-owned company should commercialise natural hydrocarbons; thus, mixed companies without an upgrader must sell their products to a state-owned company, according to the terms and conditions of the hydrocarbon purchase agreement executed for this purpose.

Mixed companies with an upgrader can sell their upgraded crude oil directly in the international market, considering that this product cannot be characterised as a natural hydrocarbon.

For the sale of non-associated natural gas, it will depend on whether the specific licence authorises the licensee to export part of its production or if it must all be sold to a state-owned company to supply the internal market.

Is oil and gas pricing regulated in your jurisdiction?

Prices of non-associated gas for the internal market and other by-products are regulated by the Ministry of the People’s Power for Petroleum.

Prices of oil are not regulated by the applicable legislation.

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