Micro, small, and medium-sized enterprises (mipymes), private companies with more than 100 employees, and non-agricultural cooperatives will be able to apply for concessions to explore and exploit oil and gas deposits in Cuba, according to a new regulation published this Monday in the Official Gazette.
The regulation is outlined in the , which implements the , approved by the Council of State on September 3rd.
Article 13 of the Regulation expressly states that these business modalities may independently participate in oil exploration and exploitation activities, although their authorization is conditioned on meeting technical and legal requirements.
To do this, they must have the endorsement of the Ministry of Energy and Mines (MINEM), the intervention of the National Office of Mineral Resources (ONRM), and the appropriate state approval.
The direct exercise of these activities requires the approval of the Council of Ministers, following the approval of the Council of State, so the regulation does not entail automatic authorization for the interested companies.
Additionally, applicants must demonstrate to the ONRM their technical capacity to carry out the operations. The Regulation itself clarifies that obtaining this accreditation does not guarantee the awarding of an oil concession.
Concessions may have a maximum duration of 30 years, extendable for another 10 years, and will be awarded through open tenders or, exceptionally, restricted ones.
A previously announced opening
The possibility of incorporating private companies into the Cuban oil business does not arise with this legislation.
On June 18, during an extraordinary session of the National Assembly, Prime Minister Manuel Marrero Cruz announced a package of 176 economic measures, which included allowing private and foreign investment in the import and marketing of fuels, including the retail network.
A month later, the Government took another step with Decree 160, published on July 28, which modified the restrictions applicable to the non-state sector.
According to the information, the extraction of crude oil and natural gas has been classified as an authorized or conditional activity, capable of being developed through administrative concessions and other legally established modalities.
That provision already anticipated that private micro, small, and medium-sized enterprises, as well as non-agricultural cooperatives, could directly engage in these activities with state approval, given the strategic importance of the resources.
Subsequently, on September 2, the Council of State removed the limit of 100 workers for private enterprises through Decree-Law 133, a modification that allowed for the legal recognition of larger businesses.
The update to Decree-Law 88, published in September, formally incorporated this category of business, which is now included among the entities eligible to apply for oil concessions.
The new regulation thus develops a previously contemplated possibility by specifying the procedures and requirements that interested companies must meet.
The State maintains ownership of the deposits
Despite the private participation outlined in the legislation, oil resources do not change ownership.
Decree-Law 135 establishes that oil and gas deposits are "socialist property of the entire people," meaning that concessions grant rights for exploration and exploitation but do not transfer ownership.
The involvement of foreign companies in the Cuban oil industry is not new either. In 2015, the Australian company Melbana Energy, then known as MEO, signed a contract with CUPET to explore Block 9, in the north of the country.
The regulatory update comes amidst a deep energy crisis, characterized by prolonged blackouts, fuel shortages, and insufficient domestic production to meet demand.
Although the new legal framework sets conditions for private sector participation, its impact will depend on the concessions that the authorities actually grant and on the capacity of the companies to undertake the investments and technical demands of the industry.
Decree 184 and Decree-Law 135 were published in the Official Gazette No. 85 Ordinary of 2026 and will come into effect on October 19th.
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