Minister Santos welcomes approval of amendment to Article 4 of the Hydrocarbons Law

The following is a machine translation of a Ministry of Energy and Mines release

SANTO DOMINGO. The Minister of Energy and Mines, Joel Santos, welcomed the approval, in the first reading, in the Chamber of Deputies, of the modification of article 4 of the Hydrocarbons Law, which will allow foreign companies to explore oil deposits and their derivatives in the country, which will attract foreign investment.

He indicated that the amendment to the aforementioned piece seeks to ensure that the Hydrocarbons Law has the same treatment as other sectors that promote national development, in regards to accelerating the process of hydrocarbon exploration in the country.

"Foreign investment is key, not only for the resources it provides, but also for the knowledge and experience needed to carry out these explorations efficiently," said Santos.

He indicated that the specific reform to Article 4 is seen as a tool to align the country with international practices in foreign investment, offering the hydrocarbon sector the same openness and success that other economic sectors have experienced since the enactment of the Foreign Investment Law in 1995.

The proposed amendment, promoted by Deputy Eduviges María Bautista Gomera, aims to adjust the definition of exploitation of oil, hydrocarbons and similar fuels, established in Article 4 of Law 4532-56, in force for 68 years.

Santos stressed that, although the entire law will not be altered, updating that article is essential, due to changes in the global context and the national economy.

"The Dominican Republic has made enormous progress since 1956. It is time for this legislation to reflect our economic openness and allow the country to compete internationally," the minister explained.

Noel Báez, Vice Minister of Hydrocarbons, emphasized the technical importance of this modification.

"The regulatory update will allow us to strengthen hydrocarbon exploration, opening up opportunities for the country to take advantage of these resources in a sustainable manner," said Báez.

Meanwhile, the legal director of the Ministry of Energy and Mines, Nadia Martínez, highlighted the importance of this adjustment from a legal point of view.

"We are seeking to modernize the legal framework to provide greater security for investments in the sector and align it with our Constitution. This will guarantee a more solid environment for contracts," he said.

For his part, Victor Manzanillo, legal director of the Ministry of Environment, indicated that any development in the sector must be compatible with the protection of protected areas and national parks.

"We must find a balance between environmental preservation and economic progress," he added.

Meeting with legislators

Prior to approving the amendment, the minister held a meeting with legislators and technicians from various institutions, who agreed that this amendment is a late but necessary step to boost the development of the energy sector.

Among those present were legislators Mateo Evangelista, Miguel Alberto Bogaert, Charles Noel Mariotti Paz and Francisca Jáquez, as well as legal directors Víctor Manzanillo (Environment) and Ulises Morla (Industry and Commerce).