The Venezuelan government will retain the power to set royalty and tax rates for private and foreign investors in oil and gas projects on a project-by-project basis under draft regulations of a new hydrocarbons law.
The law passed in January established a royalty cap of 30% and a new maximum integrated hydrocarbons tax of 15%. Industry experts had anticipated the regulations would specify exact rates below those caps.
Instead, the draft document states that the Ministry of Hydrocarbons will review each operating company's business plan to determine the specific tax and royalty rates.
