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| Caribbean-Latin America |
| National Assembly discusses state majority in gas projects |
| 2010-12-24 |
| [El Universal] The rules of the game in the gas sector may change considerably in the model of development of hydrocarbons if the Organic Law of Gas Hydrocarbons is passed. This bill is being examined by the Executive Office and could impose State's control in gas development. According to one of the articles of the bill drafted by the Ministry of Energy and Petroleum, "activities referred to exploration and production of gas hydrocarbons, as well as processing, storage, transport, industrialization, marketing and exports may be carried out directly by the State, by state agencies or by joint ventures with State majority." This provision, although does not elaborate on the proportion of state shareholding, would imply a change in the current development model. Currently, the participation of the country in the production phase reaches up to 35 percent. The new model would be changed by a joint venture model and would "put aside" the production licensing scheme (as stated by the Executive Office), including exclusive shareholding in exploration ventures. However, The infamous However... the draft law states in one of its transitory provisions that "the scheme of licenses granted until the effective date of the current law remains unchanged." |
| Posted by:Fred |