In order to establish rules in line with the current situation of the sector, the Executive Branch issued Decree No. 8785/2018, endorsed by the Minister of Public Works and Communications, which constitutes the new regulation to the Hydrocarbons Law - Law No. 779/1995 -.
This decree encompasses and annuls the previous decrees No. 2003/2014, 2673/2014 and 4476/2015, in order to simplify all the regulations in a single legal body and avoid regulatory dispersion. It also clarifies certain articles and sets forth deadlines and obligations.
In accordance with article 2 of the Annex to Decree 8785/2018, the regulation is mandatory for all natural or legal persons that request licenses for prospecting, exploration and exploitation of hydrocarbon deposits in their solid, liquid and gaseous states, as well as for holders of permits and concessions, and public officials intervening in processes leading to the granting of said rights. Regarding the scope of the new regulation, article 160 provides that it will be applicable to requests for permits and concessions that are filed since its entry into force, or, as of the date of its publication in the Official Gazette - April 17, 2018, Official Gazette No. 72-, are in process and have not yet been approved by the Evaluating Committee.
According to the representatives of the MOPC, this new regulation is another achievement to reach a better organization and ensure that the Paraguayan hydrocarbon registry is handled by serious and committed companies, and responds to the need of PETROPAR—responsible for executing the work of prospecting, exploration and exploitation of hydrocarbon deposits on behalf of the Paraguayan State—of having legal and technical tools that allow it to carry out said activities by itself or in association with other specialized companies. The new regulation seeks to provide the Cabinet of the Vice Ministry of Mines and Energy the necessary tools to regulate and supervise said activities.