New exchange agreement for Venezuelan companies engaged in activities related to gaseous non-associated hydrocarbons

The Ministry of People’s Power for Banking and Finance and the Central Bank of Venezuela published in the Official Gazette, issue N° 40.913, dated May 27, 2016, Exchange Agreement N° 37 (the Agreement). Such Agreement was authorized by the Office of the Vice-President for the Sector of Economics.
 

Below are the most relevant aspects of the Agreement:

Subjects to whom it will be applied

The Agreement is applicable to Venezuelan companies that have obtained a licence to explore for and exploit gaseous non-associated hydrocarbons, as long as such companies receive foreign currency or administer foreign currency as a consequence of their operations, including those received from export sales and changes in the consumption pattern.

Possibility of maintaining an account in foreign currency
The above-mentioned subjects may maintain such foreign currency in accounts with banking institutions or accounts of
a similar nature for the purposes of:

• Investing or re-investing in projects previously approved by the Ministry of People’s Power for Petroleum and
  Mining related to gaseous hydrocarbons
• Paying for goods, material and equipment acquired for such approved projects, as long as such goods,
  material and equipment are not manufactured in the country and are necessary for such companies’
  operations.

Prohibition

The companies referred to in this Agreement shall not be entitled to obtain foreign currency granted by the Central Bank of Venezuela to cover their obligations and payments in foreign currency.

This agreement became effective upon its publishing in the Official Gazette.