CUBA · ENERGY
Key Facts
- —What happened Cuba published its new oil and gas law on Monday.
- —In force 19 October 2026, seven days after publication.
- —Who can invest Cuban or foreign companies; US firms remain barred by the embargo.
- —Contract terms Production-sharing deals up to 40 years, concessions up to 30.
- —Replaces Laws from 1938 and 1959 on fuel minerals.
Cuba published a new oil and gas law in the Gaceta Oficial on Monday, replacing statutes from 1938 and 1959. It lets foreign companies explore and produce under contracts of up to 40 years, though the US embargo keeps American firms out.
Cuba’s new oil and gas law, which opens exploration and production to foreign companies, takes effect on 19 October. The Gaceta Oficial published Decree-Law 135 “On Oil and Gas” and its implementing regulation on Monday, 12 October.
For US readers, the law matters because American companies cannot use it while the embargo stands. It targets firms from other countries while the island is short of fuel and the US has seized Cuba-bound cargoes.
What the Gaceta Published
Gaceta Oficial No. 85, dated 12 October 2026, carries both texts from page 2823. The Council of State approved the decree-law on 3 September, and National Assembly president Juan Esteban Lazo Hernández signed it.
The Council of Ministers issued the regulation, Decree 184, under the name of Prime Minister Manuel Marrero Cruz. CiberCuba and CubaNet, both independent Cuban news sites, date the regulation to 29 September.
The decree-law repeals the Fuel Minerals Law of 9 May 1938 and Law 635 of 20 November 1959. Its preamble, as quoted by CubaNet, calls them “inapplicable” in the current political, socio-economic and technological context.
How Foreign Companies Can Take Part
The law applies to natural and legal persons, Cuban or foreign, that carry out oil activities. These include exploration, extraction, refining, transport, storage and sale, on land and offshore.
Production-sharing contracts can last up to 40 years, with an extension of up to 10 more years. The contractor bears the technical and financial risk and recovers its costs from a share of the output.
Oil concessions can run for up to 30 years, extendable by 10, and go out by open or restricted tender. Concession holders pay fees, royalties and other taxes, while production-sharing contracts can be awarded directly in exceptional cases.
Cuban suppliers get first option in contracting if they meet quality, timing and price conditions. Prices for oil, gas and derivatives will follow up-to-date international market references, under a method set by the economy authority.
Contracts already in force when the law takes effect keep their terms. Operators that miss certain technical requirements get up to three years to comply.
Background
The Gaceta texts do not say how much new investment Havana hopes to attract. They give no figures for current oil output or demand either.
The Rio Times reported in July on rules announced then to let private and foreign firms extract oil and gas. Monday’s decree-law replaces the old statutes with a single legal framework for the sector.
What It Means for You
US oil companies and investors cannot take stakes under the new law while the embargo and its Treasury rules remain in force. Non-US firms using property confiscated from Americans can be sued in US courts under Title III of the Helms-Burton Act.
Any new Cuban output would likely take years and stay small by regional standards. For travelers and Cuban-American families, it changes nothing soon about blackouts or fuel lines.
What Is Not Known
The official Gaceta website could not be reached on Monday, so the edition was read through a copy posted by CiberCuba. CubaNet separately reported the publication, and output figures given by only one outlet are left out.
The government has not named any company, block or tender date under the new rules. The Finance and Prices Ministry still has to issue the rules that the law calls for.
What Comes Next
The decree-law enters into force seven days after publication, which falls on Monday, 19 October. The Energy and Mines Ministry will run tenders, while the National Office of Mineral Resources keeps the registry.
Applications to the new oil registry must be checked within 7 working days and decided within 30 working days. The first tender call will show which foreign partners Havana is courting.
Frequently Asked Questions
When does Cuba’s new oil law take effect?
It takes effect on 19 October 2026, seven days after its publication in the Gaceta Oficial. Contracts already in force keep their existing terms.
Can US companies invest in Cuban oil under the law?
No, the US embargo still bars American companies and citizens from such deals. The law itself is open to foreign firms in general.
How long can foreign oil contracts last?
Production-sharing contracts can last up to 40 years, plus up to 10 more. Concessions can last up to 30 years, also extendable by up to 10.
Which laws does it replace?
It repeals the Fuel Minerals Law of 1938 and Law 635 of 1959. Earlier rules from the energy minister and the mineral resources office also go.
Sources: Gaceta Oficial de la República de Cuba No. 85 Ordinaria, 12 October 2026 (Decree-Law 135 and Decree 184; copy hosted by CiberCuba); CiberCuba; CubaNet (all accessed 12 October 2026).
This article was drafted with automated assistance and reviewed before publication. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief