The contract is based on a royalty and tax system. The contractor is obliged to execute the Minimum Exploratory Work Program established for each block and any Additional Exploratory Work offered during the bidding process. The contractor builds and owns facilities, and operates autonomously at its own cost and risk. The contractor owns the rights to all production, net of royalties, the Participation in Production offered to the ANH during the bidding process, and the High Price Participation which is due if international reference crude prices exceed a pre-established level. In addition, the contractor
pays regular income taxes.