VENEZUELA ENERGY IN FIGURES - Servicios IESA

authorization from the Ministry of Petroleum and Mining for assignment and transfer (Article 27).
Gaseous hydrocarbons industrialization activities can be made directly by the State, by entities owned by it
or by domestic or foreign individuals, with or without the participation of the State (Article 30).
A National Gas Entity is created, with functional autonomy under the Ministry of Petroleum and Mining, to
promote sector development and competition in all phases of the hydrocarbon gas industry related to transport
and distribution activities and to assist in the coordination and protection of such activities (Article 36).
Conditions for obtaining licenses for Exploration and Exploitation of Non-Associated
Gaseous Hydrocarbons (LOHG, Article 24)
This license is issued by the Ministry of Petroleum and Mining. Domestic or foreign individuals,
with or without the participation of the State wishing to engage in exploration and exploitation
of non-associated gaseous hydrocarbons, according to the following conditions.
Project overview, indicating the destination of these hydrocarbons.
Maximum length of thirty-five (35) years, renewable for a period to be agreed between the parties,
not to exceed thirty (30) years.
Maximum term of five (5) years to carry out the exploration and implementation of the respective
programs, subject to the other conditions specified by the Regulation.
Indication of the size, shape, location and technical delineation of the area under the license and any other
requirements, which for better determination of the area, the Regulations notes.
Indication of special considerations stipulated in favor of the Republic.
Upon termination for any reason, the assets and services will be hand over to the state, according
to conditions established in the contract or according to this article, where it discloses that the regression
is complete, free of encumbrances and without compensation.
In case of dispute, Venezuelan laws will be applied. Disputes shall be resolved in Venezuelan courts.
Regulation of the Organic Law of Gaseous Hydrocarbons (2000) (Gaceta Oficial
N° 36.793 09/23/1999)
It aims to develop the provisions of the Act relating to the exploration and exploitation of
non-associated gaseous hydrocarbons, the collection, storage and use of non-associated natural gas
from such exploitation, and the associated gas produced with the oil or other fossil fuels, processing,
manufacturing, transportation, distribution, internal and external trade of these gases and liquid
hydrocarbons and non-hydrocarbon components cotained in Gaseous hydrocarbons and gas from the oil
refining process.
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