What we do
- Analysis of the new regime for private participation in primary activities
- Formation, governance and shareholder agreements of joint ventures (empresas mixtas)
- Service, supply, operation and assignment contracts with PDVSA and its subsidiaries
- Royalties, integrated hydrocarbons tax and tax incentives
- Economic balance clauses, dispute resolution and arbitration
- Natural gas, petrochemicals and environmental compliance of projects
When to contact us
- You are considering investing in or operating exploration or production activities in Venezuela.
- You are negotiating or renegotiating a contract with PDVSA, a subsidiary or a joint venture.
- You provide services to the industry and need to structure your contracts and guarantees.
- You want to understand the tax and contractual impact of the 2026 reform.
Legal basis
- Amendment to the Organic Hydrocarbons Law (O.G. No. 6,978 Ext., 29-01-2026)private participation (arts. 23 and 25), joint ventures (art. 34), contracts for primary activities (art. 40), royalties up to 30% (art. 51) and integrated tax up to 15% (arts. 55 to 57).
- Organic Law on Gaseous Hydrocarbons (1999)non-associated gas activities.
- Organic Environmental Lawenvironmental permits and obligations of projects.
Frequently asked questions
What changed with Venezuela's 2026 Hydrocarbons Law reform?
The reform keeps State ownership of reservoirs but allows private companies domiciled in Venezuela to carry out primary activities under contracts with State companies, creates a contract to operate at the private party's own risk, simplifies the creation of joint ventures, merges several taxes into an integrated tax of up to 15% of gross revenue, and expressly allows mediation and arbitration. The tax provisions took effect 60 days after publication.
What is the oil royalty in Venezuela?
Following the 2026 reform, the State's royalty share is up to 30% of volumes extracted and not reinjected. The Executive sets the rate for each project and may adjust it to preserve the project's economic balance.
Can disputes with State companies be resolved by arbitration?
The 2026 reform allows contract disputes to be resolved before Venezuelan courts or through mediation and arbitration, which was not expressly provided before. The wording of the clause (seat, rules, language, governing law) is decisive and should be negotiated with advice.