Cuba, new rules to attract foreign investments in the oil sector

Cuba has passed new oil and gas legislation to facilitate foreign investment in the exploration and exploitation of hydrocarbons, in an attempt to revive a sector hit by the energy crisis. This was reported by Diario de Cuba. Legislative decree 135 of 2026 and the related regulation repeal the law on combustible minerals of 1938 and law 635 of 1959, introducing new contractual methods for national and international companies.

There are shared production contracts with a maximum duration of 40 years, extendable for another ten years, oil concessions of up to 30 years, also extendable, and service contracts. However, the State maintains exclusive ownership of the deposits and priority in purchasing the oil necessary for national energy security. The legislation also establishes limits on cost recovery, environmental obligations and controls on the transfer of profits abroad. The new legal framework comes into force immediately.