Through Accord 01 of 2020, the Hydrocarbons National Agency (“ANH”) has regulated the terms and conditions for the transfer of exploratory activities or investments related to Exploration & Production Contracts, Technical evaluation Contracts and Hydrocarbons Exploitation Direct Agreements.
The Accord establishes that any transfer of exploratory activities or investments must be previously approved by the ANH. The corresponding approval shall be included in an Amendment or Termination Minutes for both the Transferring Contract and the Receiving Contract.
The activities or investments to be transferred will be approved by the ANH, subject to the following conditions:
(i) Contractor’s surrender of a Contract that has pending activities or investments.
If the Contractor is constituted by multiple parties, each party could choose between paying the investments or transferring the activities.
(ii) Contractor´s decision not to complete exploratory activities in a Contract that has Evaluation or Production Areas.
(iii) The existence of supervening situations that limits for more than twelve (12) continues months the performance of the Exploratory Minimum or Posterior Program.
Supervening situations include authorities’ administrative and judicial decisions, social conflicts, and the serious alteration of the initial conditions for the contract execution.
Other dispositions to keep in mind are:
The Accord establishes that any transfer of exploratory activities or investments must be previously approved by the ANH. The corresponding approval shall be included in an Amendment or Termination Minutes for both the Transferring Contract and the Receiving Contract.
The activities or investments to be transferred will be approved by the ANH, subject to the following conditions:
(i) Contractor’s surrender of a Contract that has pending activities or investments.
If the Contractor is constituted by multiple parties, each party could choose between paying the investments or transferring the activities.
(ii) Contractor´s decision not to complete exploratory activities in a Contract that has Evaluation or Production Areas.
(iii) The existence of supervening situations that limits for more than twelve (12) continues months the performance of the Exploratory Minimum or Posterior Program.
Supervening situations include authorities’ administrative and judicial decisions, social conflicts, and the serious alteration of the initial conditions for the contract execution.
Other dispositions to keep in mind are:
- The transfer of activities or investments shall be requested and approved only one time. This rule is not applicable in the event that the transfer request is based on the conditions of the numeral (iii) above, whereby it would be possible an additional transfer request.
- If the transfer of activities is proposed for an available free area, the Contractor must be authorized as qualified contractor in accordance with the terms of the Process for the Assignation of Areas effective at the moment of the transfer request.
- The transferred activities shall be included in the Exploratory Minimum or Subsequent Program of the Transferring Contract
- Activities Transfer to Evaluation Areas will be approved if the activities seek to reach new exploratory targets.
- Once the activity transfer is approved, the parties shall execute the corresponding Minutes for Area Surrender for the Transferor Contract.
- If the Contractor does not perform the transferred activities in the Receiving Contract, the remainder investment shall be payable into the following three (3) months.
- The transfer application must be decided by the ANH within the following three (3) months or will be understood as rejected.
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