Hydrocarbons Operations Regulations

Last updated: 23 December 2020

This legislation outlines the regulatory structure of the oil and gas sector, including upstream, midstream and downstream activities. The Hydrocarbon Regulation and Control Agency (ARCH) is the technical-administrative body in charge of regulating, controlling and supervising technical and operational activities of the different segments of oil and gas industry.

The regulation does not have methane provisions, but establishes requirements that may affect related emissions, including safety measures and operational procedures for the different sectors of oil and gas industry. Furthermore, it states that developers shall conduct their activities in accordance with applicable standards and safety regulations, as well as industry best practice.

It also charges the ARCH to supervise operations in order to ensure that these are carried out efficiently. Under Article 71, operators may be required to deliver free of charge the gas that is not used in their operations. The related beneficiary public company will pay only for the adaptation expenses necessary for this delivery.

Moreover, operators must reduce waste, emission or flaring of gas. Flaring can only occur after due approval of the Ministry of Hydrocarbons and acknowledgement of the ARCH. Developers must measure the amount of gas consumed in the process and burned in flares.

The regulation also establishes requirements related to measurement, calibration, information provision, inspections, enforcement and pertaining sanctions.

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