he amendment to the Organic Hydrocarbons Law of 2006 (“OHL2006”) was published in the Official Gazette of last Thursday, January 29, 2026.
CONCLUSION: THE NEW LAW CONTAINS SUBSTANTIAL IMPROVEMENTS TO ENCOURAGE THE PARTICIPATION OF PRIVATE CAPITAL IN THE HYDROCARBONS PRIMARY ACTIVITIES AND IT MAY CONSTITUTE A MILESTONE IN THE FUTURE OF SAID SECTOR AND IN THE GENERAL ECONOMY OF OUR COUNTRY.
After an initial review the following is noted:
1- A new article 8 is included, which makes clear the possibility of submitting to arbitration the disputes that may arise from the performance of the activities under this law. This is great progress.
The Hydrocarbons Ministry, in consultation with the Attorney’s General Office of the Republic, will set the guidelines to establish the dispute resolution clause. The clauses agreed according to said guidelines will not require the opinion or authorization prescribed in the Law of the Attorney General’s Office of the Republic and the Commercial Arbitration Law. This last issue should not be a reason for concern, as in the past it was handled with a “blanket authorization”, which may be copied.
2- Art. 22 OHL2006 (now 23) is amended to include that the primary activities (initial exploration, recovery, transportation, and storage) may be performed by (i) the State, PDVSA and its affiliates, (ii) by the mixed companies in which the Republic is to have more than 50% of the capital stock and (iii) by private companies under agreements executed with companies wholly owned by the Republic or their affiliates.
This is one of the substantial changes of the Law. Now, private companies may operate individually, no need of incorporating mixed companies, but they may only do so by means of operating agreements with PDVSA and its affiliates.
