Venezuela Raises its Crude Projects Royalty Rate

Venezuela's national assembly approved on Tuesday a reform of the organic hydrocarbons law that hikes the royalty rate for all crude exploration and production projects, in some cases doubling the existing rate, newspaper El Universal reported on Wednesday.

Joint ventures between state oil firm PDVSA and private oil companies will now have to pay 33.33% equivalent to the value of each barrel at the wellhead in royalties. The royalty rate per se is 30%, while the remaining 3.33% is a special tax to promote development projects in oil regions.