Abinader enacts law to modernize hydrocarbon exploration and exploitation

Santo Domingo.- President Luis Abinader has enacted Law 37-25, updating Article 4 of the 1956 Law 45-32 to align the country’s hydrocarbon exploration and exploitation policies with the Dominican Constitution and the evolving needs of the energy sector. The reform aims to create a modern and competitive legal framework that encourages both domestic and foreign investment in the search for oil, natural gas, and similar resources across Dominican territory and maritime zones.

The legislation grants equal conditions for public, private, or mixed entities—both local and international—to engage in these activities, provided they comply with local laws. Notably, foreign companies must include at least 15% Dominican shareholding, ensuring local participation in the sector’s growth.

Minister of Energy and Mines Joel Santos announced plans for a 2026 oil round, where exploration blocks—already backed by preliminary geological data—will be auctioned to investors. Santos affirmed that technical and legal groundwork is already underway, and that Law 37-25 provides the necessary framework to secure responsible investment and deliver national benefits.