Order 012: Nationalization of Oil and Gas

[Alduria]

 

Transitional Government of the Republic of Alduria

ORDER 011

 

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Pursuant to my authority as President of the Republic of Alduria, and the provisions of the Constitution of Alduria, I hereby promulgate the following:

SECTION I. Nationalization of Oil and Gas.

1. Hydrocarbon deposits, regardless of the state in which they are found or the form in which they are presented, are the direct, inalienable and imprescriptible domain of the Republic of Alduria. No concession or contract may confer ownership of hydrocarbon deposits.
   
2. The right to explore and exploit hydrocarbon fields, and market their products is exercised by the Republic through the Aldurian Oil Company (AOC). This public company, for the exploration, exploitation and commercialization of hydrocarbons, shall be allowed into joint ventures with individuals or groups, national or foreign, according to the provisions of this Order.
   
3. The transportation of hydrocarbons and the distribution of natural gas through networks will be subject to administrative concessions, for a limited time, in favor of individuals or groups, national or foreign, made by and through the Department of Interior.
   
4. The refining and industrialization of hydrocarbons will be carried out in accordance with the provisions of the law.
   
5. Within 50 kilometers of the national borders, foreigners may not acquire or own real estate properties by any title, except in the case of national necessity declared by law.
   
6. The AOC, on behalf of the Republic, may enter into joint ventures with individual or collective foreign, public or private entities, for the exploration, exploitation and commercialization of hydrocarbons, maintaining in all cases the ownership of the proprietary right over the real estate that, for purposes of the oil industry, are built within that area and will exercise possession of them even through third parties.
   
7. The Republic nor the AOC shall not assume any obligation of financing or liability to third parties with respect to risk sharing agreements.
   
8. The oil activities subject to this Order will be executed using modern techniques and procedures for the exploitation of the fields, under the supervision of the AOC, in order to establish production levels in accordance with efficient and rational practices for the recovery of hydrocarbon reserves and the conservation of reservoirs and deposits, not being able to proceed to the burning or venting of gas, without the prior express approval of the Secretary of Interior and the supervision by the AOC.
   
9. The importation, exportation and internal commercialization of hydrocarbons and their by-products are not owned by the state, subject to the provisions of the law.
   

 

 
SIGNED,
 
Alejandro Campos
President of the Republic of Alduria.

[Natalia Cotilla]

Countersigned,

NATALIA COTILLA
Prime Minister.