HomeEconomyOilNational Assembly approved extension for 15 years requested by Petropiar

National Assembly approved extension for 15 years requested by Petropiar

The report to request the extension for the period 2033-2047 was presented by the Permanent Commission on Energy and Petroleum of the AN

This Tuesday, during its ordinary session, the National Assembly (AN) approved by Evident Majority the request for Extension of the JV Petropiar, SA, for a period of 15 years.

The report of the Permanent Commission on Energy and Petroleum of the AN was presented by deputy Omar Farías, who recalled that PetroPiar was born from the efforts of the nationalization of hydrocarbons by the then president Hugo Chávez, to redirect the resources generated by the oil industry to social investment, AVN reported.

“Since 2008, PetroPiar has been signing an agreement to carry out primary activities for 25 years. After reviewing and analyzing the report presented by the board of directors of PDVSA and considering the technical aspects, we request approval of the extension from the year 2033 to the year 2048, so that its production process can continue,” highlighted Farías.

Likewise, he highlighted that Petropiar currently produces 82.000 barrels of oil per day.

The authorization is granted in accordance with articles 34 paragraph 1 of the Organic Hydrocarbons Law. The standard indicates that the “maximum duration of twenty-five (25) years, extendable for a period to be agreed upon by the parties, not exceeding 15 years. This extension must be requested after half of the period for which the right to carry out the activities was granted and before five years after its expiration.

The extension for the period 2033-2047 was proposed before the AN Commission by the Vice Minister of Hydrocarbons Elianny Palencia, during an extraordinary meeting that was held this Monday, according to a note from the parliament.

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