Introduction

The Ministry of Energy and Petroleum issued, through Resolution 244 dated June 22, 2005, new rules for the calculation of royalties on non-associated natural gas. These rules became effective on January 9, 2006 with their publication in Venezuela's Official Gazette.[1] In our view, the new royalty calculation rules will apply to all existing and upcoming upstream gas projects. In general, Resolution 244 seems more simple and straight forward when compared to Resolution 218,[2] which dealt with the same subject and has now been totally superseded. However, Resolution 244 ...