On 19 December 2019 the Parliament adopted Draft Law No. 2240 which, among other matters,
introduces significant amendments to simplify the procedure for
entering into Production Sharing Agreements (PSAs). Specifically,
the Draft Law cancels the requirements to:
- carry out
environmental impact assessments (EIAs) of PSA drafts. From now on,
PSA investors are only required to carry out EIAs of actual works
under a PSA (for example, drilling of wells, construction of
infrastructure facilities, etc.) after the PSA is signed; and
- obtain local
councils' approvals of PSA drafts.
The Draft Law will become effective once it is signed by the
President and published in the official media.
