Spanish
Santo Domingo. - The Dominican government announced the signing of a contract with the Global Min consortium for the exploration and eventual exploitation of oil and gas in the country, in a bid to take advantage of its natural resources under strict international standards of sustainability, environmental protection, and industrial safety.
The Minister of Energy and Mines, Joel Santos Echavarría, stated: “This is another step towards consolidating the country's economic independence and energy security. We will not renounce the promotion of green energies; we will continue to advance in that area. But it is strategic to explore all our energy potential to further boost national development”.
In 2024, the Dominican Republic recorded a generation capacity of 1,396 MW through renewable sources (solar, wind, and biomass), representing an increase of over 137% compared to 2020. In a single day, a historical record of 1,101 MW of renewable energy was reached, equivalent to 46.5% of the online power. In addition, natural gas generation projects for 2,179 MW are being built, of which more than 600 MW will come into operation this year, strengthening the stability of the electrical system and the Dominican economic competitiveness. The head of the energy portfolio also recalled that, during the government of Luis Abinader, approximately 841 MW of renewable energy have been incorporated, almost double the installed capacity in 2020, and it is expected to add 612 MW more during 2025, and another 1,549 MW between 2026 and 2028. In support of this energy boost, President Abinader enacted Law 37-25, which amends Article 4 of Law 4532 of 1956. This reform modernizes the legal framework for the exploration and exploitation of hydrocarbons, establishes a transparent and competitive regime, grants equal conditions to national and foreign companies, and requires that foreign companies have at least 15% Dominican shareholding. In that sense, Minister Santos highlighted that these reforms attract greater investment, boost the economy, and promote the sustainable development of the country. Thanks to this legal backing, the First Oil Round was carried out, where blocks CB1 and CB2 were put up for auction, located in the provinces of Montecristi, Dajabón, Valverde, Puerto Plata and Santiago de los Caballeros, and which have a high potential in liquid and gaseous hydrocarbons. The agreement with Global Min establishes that the consortium will assume all costs, investments, and risks of the operations, providing technology, equipment, and capital. In addition, the contract, which will be sent to the National Congress for approval, contemplates an eleven-year concession for the two blocks. Global Min, a consortium formed by the Dominican company of the same name and the American company Lumina Geophysical, has extensive experience in Latin America and the Caribbean in hydrocarbon exploration under high standards of sustainability, industrial safety, and social responsibility, using cutting-edge technology. This project represents a comprehensive energy strategy by boosting the country's electrical security, fostering economic competitiveness, and reinforcing the renewable matrix. The action is developed within a modern and sustainable legal framework, and the benefits for the country will be tangible, without compromising the principles of environmental protection and social development.
