INTERIM GOVERNMENT SIGNS DECREE NO. 5,381 REGULATING THE HYDROCARBONS LAW TO ACCELERATE NATIONAL RECONSTRUCTION

INTERIM GOVERNMENT SIGNS DECREE NO. 5,381 REGULATING THE HYDROCARBONS LAW TO ACCELERATE NATIONAL RECONSTRUCTION

New normative act promulgated by Acting President Delcy Rodríguez establishes operational guidelines for new energy contracts and enables direct channel of resources to the Post-Earthquake Reconstruction Fund.

The Interim Government of Venezuela has officialized the signing and publication of Decree No. 5,381, dated July 7, 2026, approving the General Regulations of the Organic Hydrocarbons Law. The legal instrument sets the framework for the practical implementation of energy sector reforms, establishing the necessary conditions to attract private capital, reactivate production, and direct oil revenues toward rebuilding the country following the recent devastating earthquakes.

In a public event broadcast on national radio and television, Acting President Delcy Rodríguez highlighted that the decree regulates Development and Participation Contracts in Primary Activities. This framework allows domestic and international companies to operate directly in the exploration, extraction, and transportation of oil and natural gas under guidelines of transparency and efficiency.

Key Highlights of Decree No. 5,381

1. Emergency Financing and Reconstruction: Establishes the priority allocation of royalties and fiscal revenues generated by new partnerships to the Recovery and Reconstruction Fund, targeting the removal of over 1.2 million tons of debris, infrastructure restoration, and assistance to more than 20,000 displaced individuals.

2. Legal Certainty and Investment Attraction: Defines clear rules for private and multinational capital involvement, offering regulatory predictability to accelerate short-term cash flow generation.

3. Transparent Energy Chain Management: Regulates mediation, auditing, and operational oversight procedures across the entire hydrocarbons value chain.

4. Tax Relief for Affected Areas: Integrates mechanisms for targeted tax deferrals and exemptions to mitigate economic and housing losses suffered by populations in earthquake-impacted zones.

 "This regulation instructs and orders the correct application of the law across the entire hydrocarbons value chain, ensuring that the wealth of our subsoil is transformed into sovereign development and the immediate reconstruction of affected regions."

 — Delcy Rodríguez, Acting President of Venezuela

About the Regulations

Decree No. 5,381 takes effect immediately upon its publication in the Gaceta Oficial de la República Bolivariana de Venezuela, complementing the legal text passed by the National Assembly and consolidating the transition administration's new economic and energy strategy.