Given the current situation, governments are applying different measures to support the Oil Industry. What measures are being applied in LATAM countries regarding the Upstream Industry?
- Access to the Emergency Support Program of Work and Production.
- Local increase “barril criollo” price.
- Suspension of deadlines to submit Development Plans, and Annual Programs of Work and Production.
- Suspension of deadlines for procedures, such as: sample collection and natural gas; calibration of secondary and primary elements; inspection of measurement systems; testing of flare gas flow meters, and onshore well testing.
- Deferment of activities foreseen in the Annual Work Program, up to 1 year.
- Extension of deadlines for ANP applications.
- Extraordinary authorization for flaring in small production fields, up to 100 Mcfd Natural Gas.
- Suspension of audits during the sanitary emergency and mandatory local distance evaluations.
- Assignment of Activities or Exploratory Investments between Contracts and Agreements signed with the ANH, without offering additional investment.
- Reduction of the Economic Right of Participation applicable to production, up to a minimum of 1 % in the Receiving Contracts.
- Extension of terms of the Exploration Period, deadlines of the Appraisal Period, Declaration of Commerciality, submission of Development Plans, and Work Programs.
- Reduction of validity and percentages of Compliance Guarantees.
- Asignatarios: Reduction of the Shared Utility Right (DUC) from 58% to 28% for the monthly provisional payments of 2020, as well as for the annual one to be paid in March 2021.
Muvoil Consulting is a group of specialists in the O&G sector: legal, fiscal, social and environmental. Our multidisciplinary approach allows us to design strategic solutions that can unravel the most complex regulatory and transactional challenge that a petroleum project can face. Do not hesitate to contact us for further details.