Senate approves modification allowing foreign companies to exploit oil deposits in DR

Santo Domingo.- The Senate of the Republic approved this Tuesday a modification to article 4 of Law 4532, enacted in 1956, which opens the door for companies with foreign capital to participate in the exploitation of oil deposits and their derivatives in the Dominican Republic.

This law regulates the exploration, exploitation, and benefits by individuals of oil, hydrocarbons, and other similar fuels deposits in the country.

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The objective of the modification, according to its considerations, is to harmonize the content of the law with the Constitution of the Dominican Republic, as well as to promote the participation of countries and people in the exploration and exploitation of oil and hydrocarbon substances.

According to the text approved now, not only Dominican citizens and Dominican societies will be able to obtain the right to explore, exploit, and benefit from the aforementioned deposits. Those same rights may also be granted to foreign legal entities, whether private, public, or mixed, always through contracts or concessions governed by the legislation of the Dominican Republic.

The legislative piece now goes to the Executive Branch for its enactment and enforcement.