Accra:Cuba has repealed oil laws from 1938 and 1959 to attract foreign investment in hydrocarbon exploration and production as the nation grapples with a deepening energy crisis.

According to Anadolu Agency, the new legislation aims to modernize Cuba's legal framework for hydrocarbon exploration and production, aligning it with the country's current constitutional, economic, and technological conditions. The reform, enacted through Decree-Law 135/2026 and Decree 184/2026, revises regulations related to the exploration, extraction, refining, transportation, storage, and sale of oil and natural gas.

The updated framework includes provisions for production-sharing contracts lasting up to 40 years, with possible 10-year extensions. Oil concessions can run for up to 30 years and may be renewed for an additional decade. The legislation also allows for oil services contracts with specialized companies.

Despite these changes, the Cuban state retains ownership of the country's oil and gas deposits. Authorities hold the right to deny permits on national security grounds and prioritize domestic energy needs in production allocations. The rules also set limits on cost recovery under production-sharing agreements, establish concession fees and royalties, and introduce measures to prevent tax evasion and profit transfer abroad through inflated costs or transactions between related entities.

Operators are required to meet environmental and safety standards and may be liable for any damage caused by hydrocarbon activities. The reform is intended to stimulate international involvement in Cuba's energy sector while maintaining strategic resources under state control, amid ongoing fuel shortages and power outages.