El nuevo proyecto de Ley Orgánica de Hidrocarburos presentado por la Comisión Permanente de Energía y Minas en septiembre de 2020 (The New Daft of the Organic Hydrocarbons Law Presented by the Permanente Commission of Energy and Mines in September 2020)

Abstract

The Venezuelan oil sector is facing a dilemma. The destruction of the sector and the reduced window of opportunities offered by the international market require significant investments of about one hundred (100) billion dollars in eight (8) years. These investments must be provided, at least mainly, by private investment (as the Maduro regime itself recognizes). There are two institutional alternatives to achieve this objective: the constitutional anti-blockade law and the new Hydrocarbons Organic Law. The first option, offered by Maduro, does not provide any competitive advantage in terms of certainty and protection of economic rights; thus, it is not an appropriate institutional arrangement to promote private investment. On the contrary, this option follows the same institutional arrangements that, since 2016, have promoted only weak and unstable solutions. The second option, offered by the National Assembly, provides the appropriate institutional framework to promote private investment -considering the current conditions of the international oil market and the Venezuelan oil industry. The project of Hydrocarbons Organic Law presented by the National Assembly in September 2020, introduces reasonable institutional reforms that facilitate the implementation of the new oil public policies, although the paper recommends improving the quality of some institutional reforms.