In order to establish a regulatory order with a scope according to the current situation of the sector, the Executive Branch issued Decree No. 8785/2018, countersigned by the Minister of Public Works and Communications, which constitutes the new regulation to the Hydrocarbons Law -Law No. 779/1995-. This decree encompasses and leaves without effect the previous decrees No. 2003/2014, 2673/2014 and 4476/2015, with the purpose of simplifying all the regulation in a single legal body and avoiding normative dispersion. The same also clarifies certain articles and establishes deadlines and obligations.
According to Article 2 of the Annex to Decree 8785/2018, the regulation is mandatory for all individuals or legal entities applying for rights for prospecting, exploration and exploitation of hydrocarbon deposits in their solid, liquid and gaseous states, as well as for holders of permits and concessions, and public officials involved in processes tending to the granting of the aforementioned rights. Regarding the scope of the new regulation, Article 160 provides that it will be applicable to applications for permits and concessions that are submitted as of the effective date thereof, or that as of the date of its publication in the Official Gazette - April 17, 2018, Official Gazette No. 72 - are in process and have not yet been approved by the Evaluating Committee.
According to the representatives of the MOPC, this new regulation constitutes one more achievement to achieve a better organization and ensure that Paraguay's hydrocarbon cadastre is occupied by serious and committed companies, and responds to the need for PETROPAR, in charge of carrying out the prospecting, exploration and exploitation of hydrocarbon deposits on behalf of the Paraguayan State, to have legal and technical tools that allow it to carry out such activities on its own or in association with other specialized companies. It is also intended that the Office of the Vice-Ministry of Mines and Energy may have the necessary tools to regulate and supervise such activities.
If you would like to know more about the exploitation of hydrocarbons in Paraguay and the regulations applicable to this activity, please do not hesitate to contact: Marta Martínez (mmartinez@vouga.com.py)
