General Information
Exploration and Explotaition Contract - E&P

This form applies to contracts signed as a result of a direct award process. In the event of competitive processes the contract that is signed is published as part of the respective Terms of Reference.

The contractor develops the work program that is part of the contract commitments with autonomy and exclusive liability.

EXPLORATION PERIOD

With a six (6) year term , corresponding to the description of the Exploration Program and with the possibility to carry out an additional Exploration Program (subsequent Exploration Program) upon expiration of this period, provided there is a discovery or evaluation or exploitation area.

EVALUATION PROGRAM

With the purpose of determining the commercial potential of a discovery, the Contractor has an evaluation period of up to two (2) years depending on the program submitted to determine the commerciality of the area.

SUBSEQUENT PROGRAM

These are the activities that the Contractor may carry out within a withheld area after completion of the Exploration Period prior compliance with the conditions set forth in the contract.

ADDITIONAL EXPLORATION

These are the Exploration Activities that the Contractor decides to carry out in addition to those in the Exploration Program or in the Subsequent Exploration Program.

COMMERCIAL AREA

Once the evaluation has finished, the Contractor must deliver to the ANH a written declaration clearly stating its unconditional decision whether or not to commercially exploit the discovery.

PRODUCTION PERIOD

For 24 years, subject to extensions up to the economic life of the Commercial Field, at the Contractor’s election, provided the requirements set forth in the E&P Contract are met, this period may be extended. ANH’S CONTRACTUAL RIGHTS The Contract contemplates certain rights in favor of the ANH deriving from the use of the subsoil and high prices, once a certain

GUARANTY

At the start of each exploration phase a guaranty must be established for minimum 10% of the amount of the budget. In competitive biddings the amount of the guaranty is set forth in the corresponding Terms of Reference.

OPERATION

The ANH requires that the best practices of the oil industry be followed, including low cost and contractor’s risk.

ROYALTIES

The ANH collects royalties which are calculated in proportion to the total gross daily production, based on monthly averages of each field.

the ANH on its turn administers the resource and follows-up on the payment of the royalties and economic rights arising under the contract.

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