We are currently in a global context in which energy policies are transforming the diplomatic relations of many countries. There are more and more treaties, agreements, sanctions and regulations that, while seeking to keep the market stable, also have repercussions on the industries of each territory. Therefore, the law appears as a window to cooperation so that all countries can meet their energy demands. In this sense, today we will talk about the influence of the international criminal law in the energy and oil industry in Venezuela.
Energy industries in Venezuela and their relation to international law
Recently, the U.S. government eased some of the economic sanctions on the Venezuelan oil sector, so that they could sell crude oil to European countries. This is a direct consequence of the war in Ukraine and the restrictions on the sale of Russian oil in the region.
The recent energy crisis that certain European countries are going through has led them to look for strategic alternatives to the gas and oil they were receiving from Russia. Therefore, the global focus is placed on an industry with millionaire reserves, but lacking infrastructure and with a wide panorama of difficulties. Although with the new exploitation licenses granted to companies such as Chevron, the production quota for this new extraction season is expected to triple. At the same time they are fully complying with the fiscal, legal and administrative duties acquired in the territories where they carry out their operations.
Foreign companies see investment focus in Venezuela's oil industry
Thanks to a legal modification granted by Venezuela, Chevron may hold a majority of shares in these joint ventures. that they established with the State. So this flexibility in energy cooperation mode has allowed this private company to continue developing its infrastructure in the country's wells.
The new licenses granted to the oil companies Eni and Repsol are to compensate for the refusal of Russian oil. It is estimated that these companies will be able to produce gas and oil in Venezuela and then export it to their natural markets. Undoubtedly, this is a very big step, which seeks to improve Venezuelan oil production, at the same time that energy exchanges for foreign debts are resumed.
This helps mitigate covid-19 restrictions imposed by China on the export of its oil. Although the volume of production is not expected to strongly impact world prices. Undoubtedly, international law is opening a new panorama in diplomatic relations, so that the topic of international and energy cooperation is in the current discussions. Therefore, regulations and sanctioning procedures are beginning to be key for the implementation of compliance programs and other requirements for the correct operation of the industries.
Challenges of international criminal law in the oil industry
Regarding the development of industries, criminal law plays a leading role in preventing environmental and humanistic crimes in the contexts where oil exploitation is carried out. To this end, it is important to ensure the proper procedures to reduce crime rates, so these companies must rely on regulatory compliance programs and international certifications that guarantee good practices in all their procedures.
Currently, international criminal law has managed to maintain the agreements generated in energy matters so that markets do not have to stop and affect the civilian population. At the same time, it guarantees that the crimes incurred in this type of industries are duly channeled and penalized according to each legislation.
For Venezuela, this opening to the international market represents a great advance in recent years, so it depends on the approach of the new administrations to ensure that everything goes within the framework of the law. Undoubtedly, this is a golden opportunity to amend the bad practices and corruption that have affected the Venezuelan oil industry so much. So it will be interesting to see how this new panorama influences the country's own criminal processes.
If you would like more information or need advice on this and other issues of criminal and commercial law, do not hesitate to contact us at contact us at. We also share with you our social networks so that you can keep updated on the legal topics that are in trend: Instagram, Facebook, Twitter y Linkedin.