Reform to Law on Hydrocarbon Exploration

A proposal has been made to amend the Special Law on Exploration and Exploitation of Hydrocarbons in order to further extend search deadlines from 5 to 10 years for the operating period and from 1 to 6 years for exploration.

Wednesday, August 27, 2014

In order to provide longer time frames for exploration and mining stages, the President has sent to the National Assembly a proposal to reform the Special Law on Exploration and Exploitation of Hydrocarbons. reports "... 'We have found that the oil companies require longer exploration periods, to allow them to overcome the difficulties they face' says the text of the bill sent by the Executive. "

"...The text of this reform also includes items 3 and 5, in which state participation is promoted through the Nicaraguan Petroleum Company, Petronic. "

More on this topic

Nicaragua: Incentives for Oil Investments

December 2019

By approving the changes to the Special Law for Exploration and Exploitation of Hydrocarbons, the country's oil sector contractors are exonerated from all taxes.

The amendments stipulate that transfers of agreed contracts shall not pay taxes during the exploration period, and the direct or indirect assignment or transfer of all or part of the rights derived under any modality for the activity of exploration and exploitation of hydrocarbons shall be exempt from any capital gains tax.

Nicaragua: State is Partner in Oil Exploration

September 2014

The adoption of the amendments to the hydrocarbon law provides for the participation of the state run company Petronic in exploration activities and the ability to partner with other companies engaged in the activity.

The amended law authorizes Empresa Nicaragüense de Petróleo (Petronic) to represent the State in the exploration and exploitation of oil and "... make 'associations and partnerships with companies who come to explore and exploit hydrocarbons.'"

Brazilian Interest in Hydrocarbon Exploration

August 2014

Two companies from the South American country are interested in oil exploration activities in the Nicaraguan Caribbean coast.

The speed with which approval could be given to the amendment to the Special Law on Exploration and Exploitation of Hydrocarbons , recently sent to the Legislature, would allow foreign companies interested in oil exploration activities to accelerate their arrival.

Panama Update Oil Exploitation Regulations

July 2013

The draft amendment to the current legislation seeks to establish a legal and tax regime which is more competitive and brings higher profits for the state.

From a press release issued by the National Assembly of Panama:

A bill amending and adding articles to Act 8 of 1987 regulating the activities related to hydrocarbons, was presented by Minister of the Presidency Roberto Henriquez before the full Legislature.

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