On March 12, 2019, the National Hydrocarbons Commission (CNH) approved
in its 16th Extraordinary Session, amendments to the Guidelines that regulate
the procedure to submit, approve and supervise the compliance of the Exploration
and Development Plans for the extraction of hydrocarbons and its amendments
Below, please find the main highlights:
1. Optimization of Approval Processes.
|Approval Process of:||Current max. legal period*||New max-legal period*|
|Plans||120 calendar days + 35 business days||85 calendar days|
|Plans’ amendments||120 calendar day + 35 business days||35 business days|
|Appraisal and Pilot Programs||3 months**/legal period provided by the E&P Contract||40 business days|
|Appraisal and Pilots Programs||3 months **||35 business days|
|Annual Programs and Budgets||legal period provided by to the E&P Contract||20 business days|
|Amendments to the Annual Programs and Budgets||3 months **||14 business days|
|Transition Program||Before signing the E&P Contract||30 business days|
*Maximum legal period
**Legal period regulated by the Federal Law on Administrative Procedure which is supplementary of Guidelines
During the Session, it was also emphasized that in order to accelerate more the approval processes listed before, Contractors may request to CNH to hold hearings – prior any submission –, in terms of article 4 of the Guidelines.
2. Simplification and Clarification of Requirements.
CNH estimates a reduction of approximately 50% of the quantitative and qualitative requirements. In this regard, it should be noted that the amendments will consider the following:
- For each procedure, clear evaluation criteria.
- In the event of amendments, only the sections amended should be submitted.
- Simplification of requirements taking into account the stage and operational scenarios.
- Transversal processes and Operators’ needs.
3. Processes systematization.
Requirements detailed in the Guidelines’ exhibits were reviewed and
clarified. Moreover, it will be easier to identify in which part of the value
chain they must be fulfilled.
New formats will be available to be downloaded, and they may be submitted either via email or directly at the offices of CNH.
Finally, it was informed that on April CNH will initiate workshops regarding the Guidelines’ amendments and its effects. Likewise, it is estimated that – in the same date – the new version of the Guidelines be published in the Federal Official Gazette.
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