The creation of eight (8) Hydrocarbon Free Zones, along with the privatization program of the national port system and the reversion of the ports and related military sites managed by the United States Army, until December 3, 1999, have permitted the establishment of petroleum terminals in order to supply vessels that use the national ports or vessels that transit through the Panama Canal.
These petroleum terminals are established within Hydrocarbon Free Zones and have been granted several privileges and tax incentives, as long as the petroleum derived from product is for international markets Besides the fiscal incentives, this Hydrocarbon Free Zone are completely equipped with storage tanks and facilities used for to supply and mobilize fuels to vessels or cistern truck.
Through Cabinet Decree Nº 36 of September 22, 2003,published in the Official Gazette No. 24,892 of September 22, 2003 Panama adopted a new National Policy for Hydrocarbons.
The Cabinet Decree groups within a legal document all the regulations, both domestic and relating to international markets, and regulates the activities of contractors users of free zones by the contractor, the users of Hydrocarbon Free Zones, the refinery plants, the electric generation plants, the suppliers of bunker fuel through the use of barges, the importers, distributors, exporters, the companies that mix the bunker fuel, independent inspectors and analysis laboratories.
Cabinet Decree N º 36 has been amended or supplemented by the following rules:
- Cabinet Decree No. 25 of September 29, 2008.
- Law No. 52 of July 30th 2008.
- Cabinet Decree No. 5 of April 13, 2005.
- Cabinet Decree No. 45 of December 15, 2004.
- Cabinet Decree
The hydrocarbon market of the Republic of Panama is conformed by big international economic agents such as TEXACO, CHEVRON, ACCEL, CHEMOIL and ESSO, but also medium or small economic agents dedicated to the sale, distribution, exportation, storage and mixture of fuels, for domestic consumption and for the international market.