Production licences

The licence grants exclusive rights to exploration, exploration drilling and extraction of petroleum deposits within the licence’s specified geographical area. The licensees become owners of the petroleum produced. A production licence may include one or more blocks or parts of blocks and regulates the rights and obligations of the participating companies in relation to the state. The document complements the provisions of the Petroleum Act and provides detailed conditions for the individual permits. Period of exploration: The production licence is initially granted for an initial period (lete period) that can last up to 10 years. During this period, the licensees are obliged to perform certain tasks, such as seismic mapping and/or exploration drilling. If the work obligation is completed within the exploration period, the licensees may, as a rule, require to retain up to half of the area covered by the licence for up to 30 years.