New regulations governing Cuba's oil and natural gas industry officially took effect on October 19 local time, further expanding the scope for domestic private enterprises and foreign investors to participate in the oil and gas sector and providing a legal basis for broader development of oil and gas resources.
The new rules comprise Cuba's Decree-Law No. 135 on Oil and Natural Gas and its accompanying implementing Decree No. 184, which were published in Cuba's Official Gazette on October 12.
Under the new regulations, Cuba has further relaxed access restrictions in the oil and natural gas industry, allowing eligible domestic and foreign enterprises and individuals to take part in activities including exploration, extraction, refining, transportation, storage and sales of oil and natural gas. However, such business activities must still obtain licenses in accordance with the law, underground oil and natural gas resources within Cuba remain the property of all the people, and the state retains the right of first purchase over oil and gas needed to safeguard energy security.
In recent years, Cuba has continued to face problems such as fuel shortages and tight electricity supply. According to the new regulations, this adjustment aims to improve the legal framework of the oil and natural gas industry, promote more efficient, safe and sustainable development and utilization of oil and gas resources, strengthen state oversight, and create conditions for safeguarding the country's energy security.
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