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Market Chatter: Venezuela Sticks to July 28 Oil, Gas Contract Migration Deadline

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Venezuela will maintain a July 28 deadline for the migration of oil and gas contracts with the partners of state energy company PDVSA to a new legal structure agreed in January pushing executives to conclude negotiations, Reuters reported Thursday, citing four undisclosed sources.

The information has been shared by the oil ministry with the relevant companies, comprising of two dozen domestic and foreign companies, including Chevron (CVX), Repsol, and Eni (E), which are partnering with PDVSA for more than one project, the report said.

In late January, the country's National Assembly approved a major reform of the hydrocarbons law, which provides companies with more freedom to operate oil and gas projects, while also introducing a new tax system. The oil ministry gave companies up to six months to update existing contracts under the new rules.

Foreign executives are in Caracas and negotiations to finalize the required documents have accelerated recently after twin earthquakes last month caused delays and disrupted operations at the country's main airport, the report added.

has reached out to Chevron, Eni, and Repsol for comments. Venezuela's Oil Ministry and PDVSA could not be reached.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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