With a duration of six (6) years, divided in exploratory phases usually annual, and with the possibility of an additional exploratory program (further exploratory program) at the end of this period, provided a discovery already exists or there are evaluation or exploitation areas.
In order to determine the commercial potential of a discovery, the Contractor shall have an evaluation period of up to two (2) years, depending on the program presented to determine the commerciality of the area.
Once the evaluation is complete, the Contractor must submit ANH a written declaration containing a clear and accurately its unconditional decision to commercially exploit or not the discovery.
Up to 24 years, extendable to the economic limit of the Commercial Field, as the Contractor chooses, provided the requirements stipulated in the E&P Contract are complied.
The contract foresees rights in favor of ANH arising from the use of the subsoil, and high prices, once it reaches a cumulative production and in the event of a contract extension.
At the beginning of each exploratory phase it will establish a minimum guarantee of 10% of the budget.
ANH requires monitoring of best practices in the industry, including low cost and risk of the contractor.
ANH collects royalties, which are calculated in proportion to the gross daily total production, based on monthly averages for each field.
Click here to see the E&P Minutes (PDF)Model of the Contracted Area, Mandatory Exploration Program, Letter of Credit and Economic Rights (PDF)
It applies only for free areas.
Evaluate and improve the hydrocarbons potential knowledge of a given area and identify prospective areas of interest.
It consists of activities of surface exploration, geology, geophysics, geochemistry, mapping, phonology, Stratigraphic drilling, among others.
It can have a maximum of 18 months in continental areas and a maximum of 24 months in off shore areas.
A portion of the areas covered by TEA may become E&P contracts when his holder presents/displays exploratory programs accepted by ANH according to their effective regulation.
On a TEA area it is feasible that a third party presents an offer to enter an E&P Contract. In this case, the TEA owner has the option to match or exceed the third party's proposal and thus to be the successful bidder of the E&P Contract.
A guarantee will be set up equivalent to 10% of the work program amount.
Click here to see the TEA Minutes (PDF)