a) Tender Guidelines
- Regarding the allocation mechanism, SHCP determined fix values to the Additional Royalty:
- Allocation variable – amount offered in cash by the Bidders – will be divided as follows: (i) 20% for the State to be paid along with the execution of the Contract, and (ii) 80% for PEP, to be paid along with the following Initial Payments:
Any draw will be defined through a toss.
b) E&E Contract
- Preexisting Damages. The Contract determined that the definition of such damages will be in terms of the applicable legal framework.
- Provisional Program. Once the Development Plan and the Exploration Plan be approved, the Provisional Program will be replaced.
- Unitization. The clause was eliminated and only specifies that in the event of inferring a shared reservoir, Contractors must follow the procedure provided by the Guidelines.
- Annex 3. The values of the additional royalty were added.
- The Development Plan definition was aligned with the definition stipulated by the E&E Contract.
- To align the E&E Contract with the JOA, the latter provides that during the Start-up Transition Stage the Operator shall carry out the activities included in the Provisional Plan.
- The abandonment and remediation are not an independent Program anymore, now is a section of the Work and the Budget Program.
- To guarantee the operational continuity, Operators must hire PEP personnel for additional services.
- The following annexes were added: Property Transfer Agreement; Guidelines for the Integral Equipment of Projects; Secondee Agreement; Power of Attorney for Lawsuits and Collections, and Terms and Conditions for the Temporal Disposition of Oil and Gas.
- CNH confirmed that the Contractual Area Moloacán remains in this Tender Bid since the early termination procedure of the Contract CNH-R01-L03-A14/2015 was concluded.
- SHCP determined the following minimum and maximum values for the Additional Royalties:
Sources: 36th Extraordinary Session of CNH.
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