Ministerial Decree of August 6, 1991

This decree approves the new standards for prospecting and exploration permits and concession contracts for the production of hydrocarbons within the national territory, territorial sea, and continental shelf. It considers the provisions of Law 21 July 1967, No. 613 and Law 11 January 1957, no. 6, which regulate the exploration and production of liquid and gaseous hydrocarbons in the territorial sea and in the continental shelf.  

 

Prospecting, exploration and development operations must be performed in compliance with established safety standards and permitting requirements. The Ministry of Economic Development is responsible for the administrative and supervisory functions.   

 

Exploration permit applications must be accompanied by a technical report with and a work program, indicating methods, timelines, relative costs, and any restoration works (Article 20). Applications for production concession contracts must be accompanied by a detailed technical report, including the results of the work carried out under the exploration permit (Article 39).   

 

Each month, the concession contract holders are required to report to the Ministry of Economic Development project updates, including production amounts (Article 53). Each year, the contract holder must submit an annual report on the status of the project, and equipment and plant updates to the Ministry of Economic Development (Article 55).   

 

In the event that the owner or operator intends to abandon the well, they must submit a technical report of the closure, indicating operations carried out (Article 64).

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