An exploration-exploitation contract enables the Contractor to exclusively carry out all activities related to Oil Operations in the area covered by the contract.
The maximum total term of an exploration-exploitation contract, including all Exploration and Exploitation periods, will be thirty (30) years computable from its subscription date.
The Exploration period is divided into 3 sub-periods: basic, supplementary and extension. In the Basic sub-period, the Contractor must carry out the exploratory work committed at the time of making the offer. The supplementary and extension subperiods are optional for the Contractor.
The contract to be subscribed puts the risk in charge of the Contractor in the modality in which it is remunerated with part of the production, which distribution is carried out according to the percentages agreed in the Contract (Production Sharing Agreement). The Contractor will not acquire any mining rights on the reservoirs that are discovered in the area within the Contract, nor on the hydrocarbons that are extracted.
The Contractor assumes all the risks, costs and responsibilities inherent to the exploration-exploitation of hydrocarbons, having to contribute at its sole expense the technology, personnel, capital, equipment, machinery and other investments that may be necessary for the exploration of the area covered by the Contract, as well as for the subsequent development and production of the deposits that are eventually discovered and declared commercially exploitable.
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