Cuba reforms oil and gas laws to attract foreign and private investment

Cuba oil reform hydrocarbon concessions energy crisis foreign investment Decree-Law 135

Cuba has approved a new legal framework for its oil and gas industry to combat a severe energy crisis and economic instability. Under Decree-Law 135 and its regulation, Decree 184, the government is modernizing its hydrocarbon sector by introducing petroleum concessions as a new contractual option alongside existing production sharing contracts.

Production sharing contracts can now last up to 40 years with a 10-year extension possibility, while petroleum concessions can last up to 30 years, also with a 10-year extension option. The reform also allows national private economic entities to participate in various activities across the industry value chain, including refining, storage, and marketing, though the state maintains sovereignty over all hydrocarbon resources.

The legislative update comes as Cuba faces significant fuel shortages and frequent power outages, exacerbated by a de facto oil blockade from the United States. Currently, Cuba produces approximately 40 percent of the oil it consumes. While the government is pushing renewable energy initiatives—having installed 144 solar farms with a capacity of roughly 1,418 megawatts—renewable sources accounted for only nine percent of energy consumption in 2023.

Minister of Energy and Mines Vicente de la O Levy noted that fuel imports by the private sector from the US account for less than 3 percent of national demand and do not resolve the energy needs of state-run industries or the national electrical grid.

Entities

CUPET · Cienfuegos · Council of Ministers · Cuba · Cítricos Arimaos · Manuel Marrero Cruz · Ministry of Energy and Mines · Ministry of Foreign Trade and Investment · Pedro Abigantus León · Perla Hotel · United States · Vicente de la O Levy

Claims

What the coverage asserts, and how many sources carry each claim.

[● 7 SOURCES] Petroleum concessions can last up to 30 years, with a possible 10-year extension. oncubanews.com · www.sondakika.com · www.turkgun.com · www.bloomberght.com · halktv.com.tr · +2 more
[● 7 SOURCES] The new legislation introduces petroleum concessions as a separate option from production sharing contracts. netnews.bg · diario.mx · www.radiotaino.icrt.cu · oncubanews.com · www.5septiembre.cu · +2 more
[● 5 SOURCES] The reform allows national private economic entities to participate in oil industry activities. netnews.bg · www.5septiembre.cu · diario.mx · www.radiotaino.icrt.cu · nuevapresencia.com
[● 5 SOURCES] Cuba currently produces approximately 40 percent of the oil it consumes. netnews.bg · diario.mx · canadanewsmedia.ca · www.economica.net · cuencahighlife.com
[● 7 SOURCES] Decree-Law 135 and its regulation, Decree 184, establish the new legal framework for the oil and gas industry. www.5septiembre.cu · www.cuba.cu · www.escambray.cu · oncubanews.com · www.radiotaino.icrt.cu · +2 more
[● 6 SOURCES] The new regulations repeal the Fuel Minerals Law of 1938 and Law 635 of 1959. oncubanews.com · www.turkgun.com · www.bloomberght.com · agenparl.eu · www.riotimesonline.com · +1 more
[● 6 SOURCES] The new legal framework aims to increase crude oil and natural gas production and elevate reserves. www.radiotaino.icrt.cu · www.5septiembre.cu · www.cuba.cu · www.escambray.cu · oncubanews.com · +1 more
[● 6 SOURCES] Private sector fuel imports from the US account for less than 3 percent of national demand. netnews.bg · canadanewsmedia.ca · diario.mx · www.cmhw.cu · www.economica.net
[● 6 SOURCES] Production sharing contracts can last up to 40 years, with a possible 10-year extension. www.turkgun.com · www.bloomberght.com · halktv.com.tr · agenparl.eu · oncubanews.com · +1 more