Cuba's new oil and gas rules take effect, widening private and foreign participation
In short
Cuba's new rules for the oil and gas sector took effect, widening the participation of domestic private companies and foreign investors, CLS, Jiemian, Yicai and 36Kr reported. The rules are Decree 135 on oil and gas and implementing Decree 184, published on 12 October in Cuba's Official Gazette. Operations still require a legal licence, and subsoil oil and gas stays under public ownership.
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Cuba's new rules for the oil and gas sector have taken effect, widening the range of domestic private companies and foreign investors that can take part in the industry and providing a legal basis for expanding oil and gas development, according to CLS, Jiemian, Yicai and 36Kr. Jiemian, Yicai and 36Kr dated the entry into force to 19 October local time, and Jiemian, Yicai and 36Kr attributed their reports to CCTV News. [ 1 , 2 , 3 , 4 ]
The rules consist of Cuba's Decree No. 135 on Oil and Gas and the accompanying Implementing Decree No. 184, published in the country's Official Gazette on 12 October. Under them, Cuba further relaxes access limits in the sector and allows eligible domestic and foreign companies and individuals to take part in exploration, extraction, refining, transport, storage and sale of oil and gas. [ 1 , 2 , 3 , 4 ]
The outlets said these activities must still be licensed under the law. Subsoil oil and gas resources in Cuba continue to belong to all the people, and the state keeps a preemptive right to buy the oil and gas needed to safeguard energy security. [ 1 , 2 , 3 , 4 ]
Jiemian, relaying CCTV News, added that Cuba has in recent years faced fuel shortages and a tight power supply. It said the adjustment is meant to improve the legal framework of the sector, promote more efficient, safe and sustainable development and use of oil and gas, strengthen state oversight and create conditions for national energy security. [ 2 ]
Why it matters
The rules give a legal basis for expanding oil and gas development and open the sector to more private and foreign players. One outlet, citing CCTV News, linked the change to Cuba's recent fuel shortages and tight power supply.
Key facts
- Cuba's new oil and gas sector rules took effect, widening the participation of domestic private companies and foreign investors. [ 1 , 2 , 3 , 4 ]
- The rules comprise Decree No. 135 on Oil and Gas and the accompanying Implementing Decree No. 184. [ 1 , 2 , 3 , 4 ]
- Both decrees were published in Cuba's Official Gazette on 12 October. [ 1 , 2 , 3 , 4 ]
- Eligible domestic and foreign companies and individuals may take part in exploration, extraction, refining, transport, storage and sale of oil and gas. [ 1 , 2 , 3 , 4 ]
- These activities still require a licence under the law. [ 1 , 2 , 3 , 4 ]
- Subsoil oil and gas resources in Cuba remain owned by all the people, and the state keeps a preemptive right to buy oil and gas needed for energy security. [ 1 , 2 , 3 , 4 ]
- Jiemian, Yicai and 36Kr dated the entry into force to 19 October local time. [ 2 , 3 , 4 ]
Confirmed by several sources
- Nothing is confirmed by two independent outlets yet.
Still unclear
- Why the change was made. Only Jiemian, relaying CCTV News, gives the stated aim and links it to fuel shortages and tight power supply; the other outlets give no reason.
- What conditions an applicant must meet to count as eligible and obtain a licence. The documents refer to eligible enterprises and licences under the law but do not describe the requirements.
- The exact date the rules took effect. Jiemian, Yicai and 36Kr say 19 October local time; CLS, which published on 20 October, gives no effective date.
- Cuba's new oil and gas rules, Decree 135 and Implementing Decree 184, took effect and widen participation by domestic private companies and foreign investors. Reported by a single source so far
- The decrees were published in Cuba's Official Gazette on 12 October. Reported by a single source so far
- Eligible domestic and foreign companies and individuals may take part in exploration, extraction, refining, transport, storage and sale of oil and gas, subject to licensing. Reported by a single source so far
- Subsoil oil and gas stays under ownership of all the people, and the state keeps a preemptive right to buy oil and gas needed for energy security. Reported by a single source so far