Sources say that oil executives are rushing to complete the contract migration in Venezuela.

Four sources said that the Venezuelan oil ministry told the?partners?of the state energy company PDVSA it would maintain the deadline of July 28 to migrate oil contracts to the new legal framework it approved in January. The oil ministry urged executives to finish the negotiations. Venezuela's National Assembly approved in late January a reform of the hydrocarbons laws, which is the foundation of the energy industry. The law offers companies autonomy to operate oil and natural gas projects, and introduces a new taxation system. The oil ministry gave companies up to six months to adapt all contracts to the new framework. About two dozen companies are involved in the migration, including U.S. major Chevron and Spain's Repsol, as well as Italy's Eni. Most of these companies have multiple projects under contract or partnership with PDVSA. Sources say that the negotiations have intensified in recent days, with foreign executives arriving to Caracas in order to negotiate the lengthy list of documents to be signed, after the twin earthquakes of last month, which caused delays and shut down the main airport of the country. The oil ministry didn't immediately respond to a comment request. The most important part of core contracts in negotiation is the weighted royalties from the newly introduced hydrocarbon taxes. Two sources claim that the ministry may allow companies to submit annexes, such as the plans to produce their own electricity for each project, to the main contract at a later date. According to documents published in official gazette, some of the largest partners negotiating expansions for?PDVSA, such as Chevron have made progress by getting key permits approved by ministry. Sources say that companies entering?Venezuela first-time - mainly foreign wildcatters or little-known firms- don't have a deadline for negotiating and agreeing to contract terms after preliminary agreements signed in early this year.

(source: Reuters)