Cuba on Monday repealed oil laws dating back to 1938 and 1959 to attract foreign investment in hydrocarbon exploration and production amid a deepening energy crisis, according to Cuba’s Official Gazette.
– New legislation replaces the previous laws, updating Cuba’s legal framework for hydrocarbon exploration and production to reflect the country’s current constitutional, economic and technological conditions, according to local media.
– The reform, introduced through Decree-Law 135/2026 and Decree 184/2026, updates regulations governing the exploration, extraction, refining, transportation, storage and sale of oil and natural gas.
– The new framework allows production-sharing contracts lasting up to 40 years, with possible extensions of 10 years. Oil concessions can run for up to 30 years and be renewed for another decade.
– The legislation also permits oil services contracts with specialized companies.
– Despite the changes, the state retains ownership of Cuba’s oil and gas deposits. Authorities can reject permits on national security grounds and prioritize domestic energy needs when allocating production.
– The rules establish limits on cost recovery under production-sharing agreements, set concession fees and royalties and introduce safeguards against tax evasion and the transfer of profits abroad through inflated costs or transactions between related companies.
– Operators must also comply with environmental and safety requirements and may be held responsible for damage caused by hydrocarbon activities.
– The reform comes as Cuba faces fuel shortages and prolonged power outages.
– The new legislation seeks to encourage international participation in the sector while keeping strategic energy resources under state control.