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Transport and storage

Legal framework

What rules and procedures govern the transportation and storage of oil and gas resources in your jurisdiction?

Transportation and storage of oil and gas resources are regulated by:

  • the Organic Hydrocarbons Law;
  • the Gaseous Organic Hydrocarbons Law; and
  • the law’s regulations.

Transportation

How is cross-border transportation of oil and gas resources regulated?

There is no specific provision in Venezuelan legislation regarding cross-border transportation of oil and gas.

Are there specific provisions governing marine and ground transportation of oil and gas resources?

Yes, there are regulations relating to the transportation of oil and gas resources.

Most of these regulations apply to ground transportation. Administrative authorisation is required for this purpose, as well as permits regarding compliance with environmental and health and safety requirements.

Construction and infrastructure

How are the construction and operation of pipelines, storage facilities and related infrastructure regulated?

According to the applicable legislation, all the works and infrastructure required for the performance of oil and gas activities are declared of public utility and social interest.

Moreover, the legislation for both oil and gas provides that the land and permanent works – including installations, accessories and integral equipment, and any other goods acquired for the purposes of the activities, whatever their nature or title of acquisition – must be kept in good condition to be handed over to the republic, free of encumbrances and without compensation, when the term for the performance of the activities is extinguished for any reason, in a way that guarantees the continuity of the activities or cessation with the least economic and environmental damage.

However, as a matter of policy the government has reserved ownership of all oil and gas transportation infrastructure.

What rules govern third-party access to pipelines and related infrastructure?

There are no specific rules regarding third-party access to pipelines and related infrastructure, pertaining to the oil sector.

Under the Gas Law, companies involved in the storage, transportation and distribution of hydrocarbon gases are required to offer available capacity in their facilities to other companies involved in the storage, transportation and distribution businesses. The regulation is more liberal, granting open access to all users.

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