VENEZUELA’S NEW HYDROCARBONS FISCAL FRAMEWORK

Regulations and Implementing Resolutions

The publication of the Regulations to Venezuela’s Organic Hydrocarbons Law (the “Regulations”) together with the ministerial implementing resolutions governing Royalties and the Integrated Hydrocarbons Tax (“IHT”) completes the first phase of implementation of Venezuela’s new hydrocarbons fiscal framework introduced by the 2026 Reform to the Organic Hydrocarbons Law (the “Law” or the “Reform”).

As discussed in our previous Legal Alert addressing the principal tax aspects of the 2026 Reform, the Law fundamentally reshaped the fiscal architecture applicable to upstream hydrocarbon activities by introducing a more flexible framework designed to accommodate the technical and economic characteristics of individual projects. The Regulations now provide the general principles and operational mechanisms necessary to implement the new legal framework, while the implementing resolutions establish the rules governing the assessment, reporting, payment and administration of Royalties and the IHT.

Taken together, these instruments constitute the initial regulatory framework for implementing Venezuela’s new hydrocarbons fiscal regime. The following summarizes some of the most relevant tax developments.

1. The Regulations provide the operational framework for the new fiscal regime

The