In focus

Among the Decree's regulations, the following are highlighted:

• Export of hydrocarbons. The Decree regulates: (i) the procedure for authorizations to export hydrocarbons, which will be subject to no objection by the executive branch; and (ii) the grounds for such objection, mainly detailing the possibilities of exports suspension for security reasons regarding the domestic market supply.
• Natural gas and LNG. The Decree sets out provisions related to the export and import of liquefied natural gas and the transportation and/or distribution of natural gas, including issues related to procedures and jurisdictional control as well as infringements and penalties.
• Areas conversion. The Decree provides clarifications on the possibility of reconverting a sector or the whole area of the exploitation concession from conventional to non-conventional areas, without the need to subdivide in the latter case.
• Transport of hydrocarbons. The Decree distinguishes the types of concessions, authorizations and licenses for the transport of hydrocarbons, which differ depending on whether they were granted before or after the Base Law (concessions), and depending on whether they are used for transportation outside the limits of their own areas or to integrate refining complexes or liquefaction or storage plants (authorizations) or transportation of natural gas (license).
• Hydrocarbons' underground storage. Licensees of subway natural gas storage (with the right to store natural gas in natural hydrocarbon reservoirs) may request a transportation authorization, and the regulations of ENARGAS regarding technical safety and environmental protection will be applicable.
• Bidding documents. The Secretariat and the provincial enforcement authority are instructed to generate a set of general terms and conditions for the bidding of areas, which vary according to the areas in the Continental Platform and Territorial Sea, in conventional and non-conventional areas.
• Additional annual report. The holders of exploration permits and hydrocarbon exploitation concessions must submit annually (together with the information on proven and unproven reserves and contingent resources) information on the prospective liquid and gaseous hydrocarbon resources of their areas, certified by external auditors of recognized competence and experience, as well as the hydrocarbon production projections, including the total remaining resources of each area.
• Compensation to surface operators. The executive branch will determine yearly the compensation to be received by the surface owners and the holders of permits, concessions or authorizations.
• Environmental regulations. The Secretariat is instructed to initiate the process of drafting a uniform environmental legislation applicable to the energy sector that regulates at least: the granting of environmental approval, abandonment of wells, environmental liabilities, waste management, safety and control of well integrity, decarbonization, economic guarantees, public-private participation, environmental social responsibility, and inspections and penalties.

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