Hydrocarbons Law Guatemala

5/21/2018 Hydrocarbons Law Guatemala

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GOVERNMENTAL AGREEMENT 1034-83

National Palace: Guatemala on December 15, 1983

THE CHIEF OF STATE,

CONSIDERING:

That the Decree Law number 109-83 regulate the utili!ation o" thewealth that i obtaine# o" the #e$oit o" h%#rocarbon, $ro$itiating a $etroleum$olitic orientate# to obtain better reult in the e&$loration an# e&$loitation o"the abo'e mentione# reource(

CONSIDERING:

That "or the e""ecti'e a$$lication o" the Law o" )%#rocarbon, it rulemut be #e'elo$e# in regulation "orm, to e""ect o" allowing it a#*utment to the#%namical change o" the $etroleum worl# in#utr%, "or which $ur$oe i$rocee#ing to #ictate the re$ecti'e legal #i$oition,

THEREFORE,

+n the e&ercie o" the $ower that awar# the article th o" theun#amental .tatute o" Go'ernment, mo#i"ie# b% the Decree Law number3/-8 an# 8-83 an# with "oun#ation in what the article 1 o" the Decree Lawnumber 109-83 2Law o" )%#rocarbon etablihe,

IT AGREES:

To emit the "ollowing:

GENERAL REGULATION OF THE LAW OF HYDROCARBONS

TITLE IGENERAL DISPOSITIONS

CHAPTER IAPPLICATION, ABBREVIATIONS AND DEFINITIONS

Ar!"#$ 1%-APPLICATION% 4ei#e the #e"inition an# abbre'iationcontaine# in the Law o" )%#rocarbon, the one containe# in thi regulation, will

be a$$lie# in the b% law, agreement, reolution, contract an# other

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#ocument #eri'e# or relate# to the Law o" )%#rocarbon, Decree law number109-83

Ar!"#$ &%-ABBREVIATIONS or the e""ect o" article 1 o" thi regulationthe "ollowing abbre'iation will be ue#:

L67: Law o" )%#rocarbon 2Decree Law number 109-83

T) +N+.T: The initer o" nerg% an# ine

;+4 D+D+T:

=T) =ther not h%#ro-coal-li?e ubtance aociate# with.>4.T6N


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BARREL:>nit o" meaurement eAui'alent to hun#re# "i"t% eight literan# eight hun#re# eight% e'en thouan#th o" liter 215898 liter eAui'alent to"ort% two 2 6merican gallon

BARREL OF RAW OIL:6 barrel o" oil, correcte# to the tem$erature o"

"i"teen #egree an# "i"t% i& hun#re#th o" centigra#e #egree 2155/C


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CONTRACT OF TRANSPORT:the one that the Go'ernment o""iciatewith one or more contractor to lea# to en# o$eration o" tran$ort o"h%#rocarbon an# $etroleum $ro#uct

DEVELOPMENT OR DEVELOPMENT OPERATIONS:6ll the o$eration

e&ecute# b% the contractor ini#e the area o" e&$loitation Thi, in or#er to ma?e$oible the i#eal reco'er% o" the #ico'ere# h%#rocarbon( a well a to ta?einto e""ect the acti'itie #irectl% relate# to the ame one, in not limitati'eenumeration 6 well a the $er"oration an#or com$letion o" #e'elo$ing well,tet ten#ing to #etermine the characteritic o" the #e$oit, tu#ie o""eaibilit%, contruction o" "acilitie "or e&$loitation, e$aration, $uri"ication,$roce, liAue"action, im$ro'ement, in*ection, an# tran$ort o" the h%#rocarbon$ro#uce# ini#e the area o" e&$loitation 'er%thing $re'ioul% mentione# hathe ob*ect o" etablihing a %tem o" e&$loitation o" h%#rocarbon an#e'er%thing relate# to the etablihment o" a common %tem

DISCOVERY OF HYDROCARBONS OR DISCOVERED RESERVOIR:Dico'er% o" h%#rocarbon ini#e the area o" contract

DISCOVERY OF COMMERCIALLY E'PLOITABLE HYDROCARBONSOR COMMERCIAL DISCOVERY OR COMMERCIAL RESERVOIR: 6#ico'er% o" h%#rocarbon in commercial Auantitie that ha'ing being 'eri"ie# atleat in a well an# on the bae o" geological, technical an# economic generall%acce$te# in the $etroleum international in#utr%, that ma?e the commercial$ro#uction o" h%#rocarbon $oible

DUCT:+t i a $art o" a %tem o" tran$ort that conit o" a $i$eline,generall% metallic, an# it $rinci$al com$onent, inclu#ing the 'al'e o"iolation

E)UIVALENCE IN NATIONAL CURRENCY: To etablih theeAui'alence in national currenc% o" the obligation "oreeen in the Law an# inthi regulation, there will be ue# the t%$e o" e&change o" re"erence that at callo" the initr%, the 4an? o" Guatemala re$ort "or uch e""ect

PUMPING STATION:+t i a $art o" a %tem o" tran$ort, contructe# to$um$ cru#e oil, con#enate an#or $etroleum liAui# $ro#uct "or it tran$ort

acro the $i$eline Thi inclu#e bomb, machiner%, control, $i$e, the areain which it i intalle#, the acceorie an# other wor? contructe# with uchintention

STATION OF COMPRESSION: +t i a $art o" a %tem o" tran$ort,contructe# "or the com$reion o" natural ga an#or $etroleum gaeou$ro#uct "or it tran$ort acro the ga $i$eline Thi inclu#e com$reor,machiner%, control, $i$e, the area in which it i intalle#, the acceorie an#other wor? contructe# with uch intention

E'PLORATION OR E'PLORATION OPERATIONS: =$eration

e&ecute# b% the contractor ini#e the area o" contract with the onl% ob*ect o"#ico'ering h%#rocarbon, a well a the o$eration #irectl% aociate# with

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thoe +n the a"oreai# o$eration remain inclu#e#, in not limitati'eenumeration, u$er"icial recognition, $re$aration o" $er"oration ite, $er"orationan# com$letion or com$letion o" e&$lorator% well, com$ilation an# tu#% o" allthe #ata that i obtaine# o" the abo'e-mentione# well +t alo inclu#e thee'aluation well an# the necear% tet in or#er to #etermine the

commercialit% o" the "iel#, the contruction o" highwa%, air$ort, heli$ort,buil#ing, #uct, water well, an# electrical $lant, $ro'i#ing that the ame oneare aociate# to ob*ect o" the contract

E'PLOITATION OR E'PLOITATION OPERATIONS: The o$eration o"#e'elo$ment an# commercial $ro#uction o" h%#rocarbon ini#e the area o"e&$loitation or, when it i the cae, in the common %tem an#or theetablihment o" line o" "lu& among the e&$loitation area

PHASE: +t i an% la$e o" the e&$loration or e&$loitation $erio#,accor#ing to what ha been #e"ine# in it contract

STARTING DATE OF THE COMMERCIAL PRODUCTION: or e'er%area o" e&$loitation, it i the #a% in which the "acilitie nee#e# "or the $ro#uctiono" cru#e oil an#or natural ga, coming "rom at leat one $ro#ucing well, are $utin commercial regular o$eration Thi #ate might be the e""ecti'e #ate o"election or an% another later #ate

EFFECTIVE DATE: The #ate in which a contract o" $etroleum o$erationi $ublihe# in the =""icial Diar%

EFFECTIVE DATE OF RETURN:+t i the #ate in which the Direction thata$$ro'e the area returne# o" con"ormit% with thi regulation gi'e it reolution

EFFECTIVE DATE OF SELECTION OR EFFECTIVE DATE OF

ESTABLISHMENT OF A COMMERCIAL FIELD: +t i the #ate in which theDirection that a$$ro'e the election o" an area o" e&$loitation o" con"ormit%with thi regulation gi'e it reolution

FORMATION BORDERS: +t i the geological "ormation, which will beable to be i#enti"ie# in the contract =n the bae o" the ?nowle#ge generall%acce$te# in the $etroleum international in#utr%, the e#imentar% roc? in thi

geological "ormation might not contain reer'oir o" a reaonable i!e an#Aualit% that *uti"% economicall% the continuation o" the $er"oration o" a well inthee roc?

GUARANTEE: The bac?ing or ban? u$$ort that the contractor, in"ul"illment o" hi obligation, contitute in "a'or o" the .tate, it intitution orthir# $eron, in con"ormit% with the Law, which are thi regulation an# there$ecti'e contract

MOUTH OF WELL GAS:+t i the natural reco'ere# ga or the one thatcan be reco'erable "rom a reer'oir though a well, to which the liAui# $etroleum

ga an# other ubtance ha'e not been e&tracte#

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GAS PIPELINE: +t i the #uct "or the tran$ort o" natural ga an#or$etroleum gaeou $ro#uct, "rom the $oint o" loa# u$ to a terminal or anotherga $i$eline Thi inclu#e the "acilitie an# eAui$ment necear% "or theetran$ort

OPERATION E'PENSES: The% are all the reaonable, a$$ro$riatee&$ene, an# cot carrie# out a a reult o" the o$eration o" $ro#uctionThe% tart "rom the #ate o" the commercial $ro#uction, in con"ormit% with thiregulation an# the re$ecti'e contract, attributable to an area o" e&$loitation an#other cot i#enti"ie# in the Law a e&$ene o" o$eration

DEVELOPMENT INVESTMENTS: The% are all the reaonable,a$$ro$riate in'etment an# cot carrie# out on a a reult o" the o$eration o"#e'elo$ment attributable to e'er% area o" e&$loitation, in con"ormit% with thiregulation an# the re$ecti'e contract

E'PLORATION INVESTMENTS: The% are all the reaonable,a$$ro$riate in'etment, an# cot carrie# out a a reult o" o$eration o"e&$loration attributable to a contract area in con"ormit% with thi regulation an#the re$ecti'e contract

LINE OF FLOW:+t i a #uct "or the tran$ort o" not re"ine# h%#rocarbonor $artiall% re"ine# one( that come o" one or e'eral well o" a $etroleum "iel#to a e$aration $lant, $uri"ication or re"inement o" h%#rocarbon, an# anothert%$e o" collecting "acilitie

MONTH OR CALENDAR MONTH:+t mean the #a% that corre$on# incon"ormit% with the Gregorian


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continue until the contractor "inihe uch o$eration accor#ing to the Law,which are thi regulation an# the re$ecti'e contract

E'PLOITATION PERIOD: la$e in which the contractor e&ecutee&$loitation o$eration that begin, with regar# to e'er% e&$loitation area, in the

e""ecti'e #ate o" election, an# continue until the ame one i returne# to the.tate or u$ to the com$letion o" the contract b% an% reaon Thi inclu#eo$eration o" e&$loration in the area o" e&$loitation

DELIMITING WELL: +t i a #rille# well that ha the $ur$oe o"#etermining the lateral e&tenion o" one or more reer'oir

DEVELOPMENT WELL:+t i a well #rille# in a commercial "iel# with thee&$ectation o" increaing the $ro#uction o" that "iel# Thi well i locate# inagreement to the reAuirement o" #e'elo$ment o" the $etroleum "iel# an# itcoul# be a $ro#uction, #elimiting, in*ection t%$e o" well or one "or ober'ation or

meaurement

TESTING WELL:+t i a well #rille# to #etermine the commercialit% o" oneor more reer'oir +t i #one a"ter $er"orating the e&$loration well that#ico'ere# the reer'oir or reer'oir or $ur$oe o" an% contract o"e&$loration an#or e&$loitation a teting well hall not be coni#ere# neither ane&$lorator% well nor a #e'elo$ment well

IN*ECTION WELL:+t i the one $er"orate# with the $ur$oe o" in*ectingwater, ga, or other "lui# to the reer'oir Thi in or#er to maintain or toincreae the $reure o" the ame one or that ha been #etermine# "or uchintention( or, to carr% out the econ#ar% or tertiar% reco'er% o" one or more#e$oit( or "or reaon o" $re'enting $ollution

MEASUREMENT OR OBSERVATION WELL:+t i a well ue# onl% "or

the ober'ation o" $reure an#or tem$erature o" one or more reer'oir, themo'ement o" the contact between "lui#, or to ober'e other $h%ical an#chemical characteritic o" the reer'oir or reer'oir

PRODUCTION WELL: +t i the well through which h%#rocarbon are$ro#uce# "rom one or more #ico'ere# reer'oir

E'PLORATORY WELL:+t i the well #e"ine# in the Law, an# the onethat later will be able to er'e "or another $ur$oe

BUDGET: +t i the "inancial annual $lan o" cot, e&$ene, an#in'etment inten#e# to the "ul"illment o" a $rogram o" wor? in con"ormit% withthi regulation

PRODUCTION OR HYDROCARBONS PRODUCTION: 6n% e&tractiono" h%#rocarbon "rom one or more reer'oir through one or more well

COMMERCIAL PRODUCTION:=$eration "ul"ille# in or#er to maintaina regulate $ro#uction that i $ro"itable un#er the commercial $ractice o" the

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$etroleum international in#utr% =ne ha to ta?e into account cot, e&$enean# in'etment $oterior to the #ate in which the "uture commercialit% o" the$etroleum "iel# i coni#ere#, a well a all the $a%ment that the contractormut $a% to the Go'ernment accor#ing to the Law

IDEAL PRODUCTION: 2o#i"ie# b% article 1 o" Go'ernmental6greement Number 53-9 +t i the $ro#uction that allow the ma&imum, "inal,economic reco'er% o" a #ico'ere# reer'oir with a rate in which the $ro#uctioncan be carrie# out without an e&cei'e #ecline in the reer'oirF energ%

EVALUATION TRIALS:The% are thoe that allow one to #etermine the$reence o" h%#rocarbon, an# to obtain the necear% $arameter to con"irm i"the #ico'er% i a commercial one

POINT OF LOAD: +t i one o" the en# i#e o" the $i$eline or ga$i$eline "rom which the tran$ort o" h%#rocarbon begin

POINT OF DELIVERY:+t i one o" the en# i#e o" the $i$eline or ga$i$eline to where the tran$orte# h%#rocarbon come

INTERMEDIATE POINT OF MEASUREMENT: +t i the $oint $lace#ini#e the e&$loration area, etablihe# "or the meaurement o" h%#rocarbon inor#er to aign a clear $ro#uction an# reco'erable cot o" it Gi'en that acommon %tem an# the corre$on#ing $oint o" meaurement are authori!e#,in con"ormit% with article 01 o" thi egulation

COMMON SYSTEM: +t i a %tem o" h%#rocarbon e&$loitation, withe&ce$tion o" an% t%$e o" well, ue# in *oint "orm "or two or more e&$loitationarea, in or outi#e the ame one +t inclu#e an% wor? o" in"ratructure locate#out o" the e&$loitation area, #irectl% relate# to the o$eration o" e&$loitation o"the abo'e mentione# area

HYDROCARBON E'PLOITATION SYSTEM: +t conit o" all the"acilitie ini#e an e&$loitation area "or the e&$loitation o" h%#rocarbon +t run"rom the reer'oir u$ to the $oint o" meaurement, an# inclu#e it#e'elo$ment well( the e$aration $lant, $uri"ication an# $roceing,liAue"action or im$ro'ement o" h%#rocarbon( line o" "low, an# an% another wa%

o" tran$ort( ul"ur an#or other ubtance $lant +n a##ition to thi, witinclu#e torage, bomb, com$reor, o""hore, #rilling $lat"orm( hortco'erage ma me#ia uch a tele$hone, telegra$h an# ra#io( roa#,highwa%, runwa%, air$ort, o""ice an# an% another "urniture or buil#ing thatare in ue o" the %tem( an# all other wor? relate# to it

THIRD PARTIES:The% are the natural or *uri#ical, national or "oreign$eron, #i""erent "rom the $art

TERMINAL:+t i the et o" "acilitie contructe# to tore h%#rocarbonThee "acilitie inclu#e bomb, com$reor, machiner%, control, torage

tan?, an# meaurement "acilitie +t alo inclu#e area in which the "acilitieare intalle#, an# all the wor? contructe# "or the ame ob*ect, which will be

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able to er'e, in#itinctl%, "or the loa# an#or e&haut o" truc? tan?, boat tan?,an# rail roa# tan? The% will alo er'e"or the "illing or em$t%ing o" $i$elinean# ga $i$eline

MARITIME TRANSPORT: +t inclu#e the 'alue o" the a$$licable tari"",

bae# on internationall% acce$te# tari"" o" tran$ort, the cot o" aurancean# the cot normall% inclu#e# "or maritime tran$ort in the $etroleuminternational in#utr%

TRIMESTER:+t mean a $erio# o" three 23 conecuti'e month bae#on the Gregorian


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$ublihe# The contractor will alo $reent an authentic co$% o" the contract to$rocee# to #o the incri$tion that corre$on# in the re$ecti'e recor#

Ar!"#$ .%- SUSPENSION OR RENEWAL%The u$enion or renewalthat in the e&ecution o" a contract i grante# to the contractor b% 'irtue o" the

Law, thi regulation an# the re$ecti'e contract, in no cae houl# be im$lie# orinter$rete# a an e&tenion to the term o" twent%-"i'e 25 %ear that etablihethe article 1 o" thi Law

Ar!"#$ 8%- USE OF CONTRACTORS AND SUBCONTRACTORS OFPETROLEUM SERVICES%The contractor will be able to e&ecute the $etroleumo$eration ob*ect o" the contract, #irectl% or through contractor o" $etroleumer'ice, an# thee through ubcontractor o" the ame er'ice +n cae thecontractor will celebrate contract o" $etroleum er'ice, it remain un#ertoo#that whoe'er gi'e uch er'ice will not be able to e&ecute at the e&$ene o"the "irt one the obligation that, with regar# to the .tate, the contractor mut

e&ecute The ubcontractor will not be able to conclu#e the totalit% o" theo$eration that the contractor mut e&ecute in con"ormit% with the Law

Ar!"#$ /%- INFORMATION OF DISCOVERIES%The contractor an# thecontractor, or ubcontractor o" $etroleum er'ice, through the contractor, orthe hol#er o" a $ermiion, ha'e the obligation to re$ort imme#iatel% to theDirection on the #ico'er% o" h%#rocarbon, an% cla o" mineral #e$oit an#treaure( archaeological ite or hitorical $iece( an# other o" an% nature,which control an# coner'ation i necear% in interet o" the $atrimon% o" theNation

7hen treaure, archaeological ite, or hitorical $iece are #ico'ere#,all the "acilitie nee#e# to reali!e in$ection will be gi'en to the corre$on#ingauthoritie The #i$oition that in the matter are emitte# will be "ul"ille# inor#er to a"eguar# thoe area that "or their archaeological or hitoricalim$ortance are ha'e to be $reer'e# an# $rotecte#

Ar!"#$ 10%-OTHER DISCOVERIES AND APPLICABLE LAWS% +" a areult o" the $etroleum o$eration the% will be #ico'ere#, obtaine#, or$ro#uce# not h%#ro-coal-li?e ubtance o" national interet, e&ce$t thoearrange# in thi regulation, their utili!ation will be rule# b% the re$ecti'e law

+n an% cae, that #ico'er% will not grant right or an% $riorit% to the com$an%

Ar!"#$ 11%- PROHIBITION% +t i $rohibite# to celebrate arrangement,agreement, or to acAuire commitment, #irectl% or in#irectl%, "or oneel" orthrough other $eron, ten#ing to elu#e the #ue "ul"illment o" the commitmentacAuire# in the contract or that tr% to ta?e a#'antage o" the bene"it that grantthe contractor "or $ur$oe #i""erent "rom thoe o" the $etroleum contracte#o$eration

Ar!"#$ 1&%- USE OF WOOD AND WATERS%Pro'i#ing that it "ul"ill thereAuirement that the law an# the b%law #eman#, the contractor will be able

to ue, e&clui'el% "or the wor? o" hi $etroleum o$eration, the natural,

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contruction material, the woo#, an# the water o" the national area $lace#ini#e the limit o" the contract area

The $re'iou tatement #oe not inclu#e the "acult% to ta?e a#'antage o"$reciou woo#, which cutting #own an# bene"it are ub*ect to $ecial law, to

ta?e a#'antage, to the #etriment o" the $o$ulation, the woo# ue# a "uel-woo#"or #ometic ue or the ource that er'e "or the u$$l% o" #rin?able water

Ne'erthele, i" to carr% out a $etroleum o$eration the% will be oblige# toclean a ur"ace an# cut #own $reciou woo#, the contractor will communicate itto the Direction The contractor will $ut to the DirectionF #i$oition, in the$lace o" cutting #own, the tree that the% will ha'e cut

+" the% were woo# o" $ri'ate $ro$ert%, or water, which utili!ation will be

bene"icent "or $o$ulation or $articular $eron( the com$an% will ha'e be inagreement with the $o$ulation or $eron in the wa% an# "orm o" acAuiring

thoe +n a##ition, the% will ha'e to agree with their ue, a it were the cae

Ar!"#$ 13%- COMUNICATION WAYS AND AIRPORTS% Thecommunication wa% an# air$ort that were built a a reult o" the e&ecution o"a contract o" $etroleum o$eration coul# be ue# b% the $ublic, accor#ing to theLaw, $re'ioul% to the conent o" the initr%, a long a their ue will not a""ectthe #e'elo$ment o" the $etroleum o$eration

Ar!"#$ 14%- REFERENCE FILES%The in#i'i#ual or *uri#ical, national or"oreign $eron, authori!e# to o$erate in the e$ublic, which are interete# inwor?ing on $etroleum o$eration in the countr%, will be able to reAuet be"orethe De$artment, the "ormation containe# in re"erence "ile in where thein"ormation i com$ile# The% coul# alo reAuet #ocumentation that inecear% "or an% management relate# to the o$eration be"ore mentione#,without $re*u#ice o" the in"ormation an#or a##itional #ocument that arereAuete# in the re$ecti'e ummon

The in"ormation an#or #ocumentation that were containe# in there"erence "ile will be able to be u$#ate# on initiati'e o" the interete# $artie orat call o" the initr%

Ar!"#$ 1%- PAPER IN WHICH IT MUST BE MANAGED%2o#i"ie# b%6rticle 3 o" Go'ernmental 6greement Number 53-9 6ll managementreali!e# be"ore the Go'ernment, relate# to the a$$lication o" the Law, will be#one in bon# $a$er with a ma&imum ue o" twent%-"i'e 25 line $er i#e( witha le"t margin o" "ort% 20 millimeter minimum, with two im$le co$ie, $ro'i#ingthat a ma*or number o" co$ie i not $eci"ie#

CHAPTER IIITECHNICAL AND FINANCIAL CAPACITY OF THE CONTRACTORS

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Ar!"#$ 1%- INFORMATION AND DOCUMENTS% To etimate thetechnical-"inancial ca$acit% an# the $ro'en e&$erience in the matter o" an$eci"ic contract, the in#i'i#ual or *uri#ical $eron interete# in o""iciating acontract o" $etroleum o$eration will $reent, in con"ormit% with the "ollowingarticle, in the #ate or term that et to recei'e o""er, the in"ormation an#

#ocument in#icate# in the "ollowing article( an# thoe who are nee#e# in there$ecti'e ummon

Ar!"#$ 1.%- FINANCIAL CAPACITY% 2o#i"ie# b% 6rticle o"Go'ernmental 6greement Number 53-9 To etimate ob*ecti'el% the "inancialca$acit% one will $reent the "ollowing in"ormation an# #ocument "rom the lattwo annual $erio# be"ore the #ate o" o""er recei$t:

a Total aet at the en# o" e'er% $erio#(

b .ale o" cru#e oil, con#enate, natural ga, an# $etroleum $ro#uct(

c Total in'etment accumulate# at the en# o" e'er% $erio# carrie# out inthe countr% o" origin(

# +n'etment in total $etroleum o$eration accumulate# at the en# o"e'er% $erio#, carrie# out in the countr% o" origin(

e +n'etment in total $etroleum o$eration accumulate# at the en# o"e'er% $erio# carrie# out in in#utriali!e# countrie(

" +n'etment in total $etroleum o$eration accumulate# at the en# o"e'er% $erio#, carrie# out in #e'elo$ing countrie(

g


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To ob*ecti'el% etimate the "inancial ca$acit% o" the in#i'i#ual or *uri#ical,national or "oreign $eron, who "or being o" recent contitution cannot $reentthe reAuirement $eci"ie# in the $re'iou claue o" thi article( the% will ha'eto $reent the "ollowing:

+ +" it i an in#i'i#ual $eron, he will $reent hi Patrimonial .tate emitte#within thirt% 230 #a% be"ore the #ate o" the $reentation o" hi o""er,which will ha'e to be certi"ie# b% a $ublic boo??ee$er an# an au#itor,member o" the aociation o" aet +" he i an in#i'i#ual national$eron or in#i'i#ual "oreign $eron, the tatement ha to be certi"ie# b% acom$an% o" $ublic boo??ee$er an# au#itor o" hi countr% o" origin

++ +" it i a legal $eron, he will ha'e to $reent a General 4alance, or whenit i the cae, a General


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" .%tem an# ca$acit% o" tran$ort o" h%#rocarbon that he $oee(

g +n"ormation that #emontrate it ca$acit% o" mar?eting( an#

h 6 lit o" the countrie in which thi $eron e&$lore or e&$loith%#rocarbon, in#icating in which cae he act a the o$erator

To ob*ecti'el% etimate the technical ca$acit% an# the $ro'en e&$eriencein the matter o" the contract "or the national or "oreign legal $eron, who "orbeing o" recent contitution cannot "ul"ill with the reAuirement $eci"ie# in the$re'iou claue o" thi article, the% will $reent the "ollowing:

+ .worn tatement o" the lit an# reume o" the $eronnel with technicalca$acit% that the o""erer will em$lo% to initiate the $etroleum o$erationmoti'e o" the contract =therwie, the lit an# hitor% o" the com$an% that

will $ro'i#e technical u$$ort to the o""erer +n the econ# cae, there willha'e to be $ro'i#e# the in"ormation an# #ocument to which the clauere"erring "rom a to h mentione# at the beginning thi article, an# an%another in"ormation that i con'enient(

++ Decri$tion an# lit o" the minimum $oition or technical $oition thatthe o""erer will ue to carr% out each o" the $hae or $erio# o" thecontract Thi #ecri$tion an# lit will be recor#e# in the contract(

+++ 6uthentic worn tatement that the $etroleum er'ice or $eron thatthe o""erer #eci#e or houl# contract in cae o" wining the ummon, willbe #one with contractor o" $etroleum er'ice, an# $ro"eional ortechnician, a it i the cae, o" recogni!e# ca$acit% in that $eci"ic$etroleum o$eration

Ar!"#$ 1/%- )UALIFICATION%2o#i"ie# b% 6rticle / o" the Go'ernmental6greement Number 53-9 The Auali"ication o" the technical-"inancialca$acit% an# $ro'en e&$erience o" the in#i'i#ual or *uri#ical $eron in the mattero" the contract will be etimate# b% the initr% in the "orm an# o$$ortunit%tate# in the re$ecti'e regulation o" ummon

Ar!"#$ &0%- TECHNICAL FINANCIAL, COMBINED CAPACITY% Twoor more in#i'i#ual or *uri#ical $eron will be able to reAuet that the% houl# beaccre#ite# the technical-"inancial ca$acit% an# $ro'en e&$erience in the mattero" the contract com$lementing itel" b% *oining one with another Ne'erthele,onl% the one that $oee the technical ca$acit% will be able to act a theo$erator

CHAPTER IVPERMISSIONS OF SUPERFICIAL RECOGNITION

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Ar!"#$ &1%-INSCRIPTION%The in#i'i#ual or *uri#ical, national or "oreign$eron, interete# in carr%ing out o$eration o" u$er"icial recognition, will ha'eto obtain $ermiion o" the initr%

The $re'iou tatement ha not $re*u#ice o" the im$licit right that a

contractor, who e&ecute o$eration o" e&$loration an#or e&$loitation, ha o"reali!ing o$eration o" u$er"icial recognition ini#e hi area o" contract

Ar!"#$ &&%- FORMAL RE)UIREMENTS OF THE RE)UEST%22o#i"ie#b% 6rticle 3 o" the Go'ernmental 6greement Number 1/5-005 The $eron,who reAuet $ermiion "or u$er"icial recognition, mut $reent be"ore theDirection, a reAuet that will ha'e to contain:

a +" it were an in#i'i#ual $eron:

1 Name an# urname o" the olicitor(

6ge, marital tatu, nationalit%, $ro"eion, an# #omicile(3 Legal co$% o" the $eronF +#enti"ication


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e&ecution o" the $ermiion he $lan to carr% out wor? an# in'etmentu$erior to thoe in#icate# in the worn tatement, he will ha'e to ac?nowle#gethem to the De$artment

Ar!"#$ &3%- RESOLUTION OF GRANT% )a'ing alrea#% "ille# the reAuet

"orm, the Direction with it o$inion will $reent it, along with the re$ecti'e#ocumentation, to the initr% "or the coneAuent e""ect The initr% willemit, in thirtie 230 "ollowing #a% o" recei'e# the reAuet, the reolution o" the$ermiion o" u$er"icial recognition, which will inclu#e among other a$ect the"ollowing one:

a The area in which he will be able to carr% out the u$er"icialrecognition, a well a the o$eration that he will be able to reali!e inagreement to the $rogram o" wor? alrea#% $reente#(

b The term o" the $ermiion(

c The obligation to in"orm $erio#icall% the Direction about the#e'elo$ment o" hi o$eration in the "orm an# o$$ortunit% that thiin#icate, an# to #eli'er in original with two co$ie, the in"ormation thatit i obtaine# in the coure o" the o$eration o" u$er"icial recognition,a well a the inter$retation or $roceing o" the it, without an% cot(

# The obligation, in the la$e in which the $ermiion lat, o" gi'etraining to two technical $eronnel o" the initr%, in the t%$e o"o$eration that he will reali!e, in a $erio# not le than three 23month, "or e'er% %ear o" term o" $ermiion, when it i reAuire# b% theinitr%(

e 7ithout harm o" the obligation to in#emni"% the owner o" area, or toan% $eron to whom it caue #amage an#or harm, the obligation toco'er a bail, which amount will be "i'e $er cent 25 E o" the $reente#bu#get(

" The obligation to allow to the $eronnel o" the initr% the acce, inan% moment, to the wor? an# in"ormation that i being obtaine#( an#

g The $a%ment an# other obligation that the De$artment coni#eruitable

&4%- CONFIDENTIALITY% The initr%, at call o" the hol#er o" the$ermiion, will u$$ort the con"i#entialit% o" the in"ormation that i #eri'e# an#$ro'i#e# "rom the $ermiion, in a term o" u$ to two 2 %ear counte# "rom the#ate o" recei$t o" the abo'e mentione# in"ormation

The hol#er o" the $ermiion will be able to gi'e to the in"ormation an#in"ormation #eri'e# "rom the e&ecution o" hi o$eration the legal ue that ibet con'enient to hi interet Ne'erthele, the .tate, while the $erio# o"

con"i#entialit% lat, will be able to ue uch in"ormation "or the internal tu#iethat it reali!e

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Ar!"#$ &%- CANCELLATION OF PERMISSION% The De$artment willbe able, in an% moment, without re$onibilit% o" hi $art, to cancel the$ermiion that it will ha'e grante#, in cae the hol#er o" the $ermiion #oenot "ul"ill with an% o" the obligation "oreeen in the Law, in the $ermiion itel",

or when #i""erent wor? are e&ecute# #i""erent "orm thoe in#icate# in thereolution o" grant

Ar!"#$ &%- BEGINING OF THE EFFECTS OF PERMISSION% =nce thereolution o" grant o" the $ermiion i emitte#, the interete# $eron will e""ectthe $a%ment o" the a#minitrati'e rate where it "it )a'ing accre#ite# thibe"ore the initr%, the interete# $eron will $ublih, to hi e&$ene, in the=""icial Diar%, the mentione# reolution, #ate "rom which it will $ro'i#e ite""ect

Ar!"#$ &.%- E'CEPTION% The $eron interete# in reali!ing wor? o"

ur"ace geolog% an#or geochemical "iel# wor? with a bu#get not ma*or to ahun#re# thouan# uet!ale 2100, 00000 will be able to reAuet$ermiion +n a##ition, the% will be ub*ect to the regulation containe# in thearticle 3, claue # an# g an# /, with e&ce$tion o" the $ublication o" thereolution, both o" thi regulation

Ar!"#$ &8%- REGISTRATION IN THE PETROLEUM RECORD% =ncethe reolution o" grant o" the $ermiion i $ublihe# in the =""icial Diar%, theinterete# $art% will $reent be"ore the initr%, a co$% o" the abo'e mentione#$ublication where the reolution a$$ear to carr% out hi regitration in thePetroleum ecor#

Ar!"#$ &/%- E'TEND% The hol#er o" a $ermiion will ha'e right to thean e&tenion, i" he #emontrate to ha'e "ul"ill all the obligation #uring the$re'iou $erio# o" the $ermiion or thi e""ect, the hol#er o" the $ermiionwill ha'e to $reent in writing be"ore the Direction with, at leat, a month o"antici$ation to the maturit% o" the $ermiion hi #eire to e&ten# it( in whichcae, it will ha'e to be ober'e#, in what it houl# be a$$licable, the regulationcontaine# in article , 3, / an# 8 o" thi regulation( e&ce$t the "oreeen inarticle The initr% will emit the reolution be"ore the term o" $ermiion"inihe

CHAPTER VTRANSFERENCE OF RIGHTS DERIVED FROM A CONTRACT

Ar!"#$ 30%- TRANSFERENCE OF RIGHTS RE)UEST% The contractorinterete# in %iel#ing $art or the totalit% o" the right #eri'e# "rom a contract o"$etroleum o$eration mut reAuet be"ore the initr% the authori!ationreAuire# b% article 18 o" the Law, in writing, attaching to hi reAuet:

a Document that cre#it the legal e&itence an# recor# o" the in#i'i#ual or*uri#ical, national or "oreign $eron, $ro$oe# to $robabl% recei'e the right

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an# obligation, an# in it cae, the authori!ation to ma?e buine in thee$ublic(

b 6uthentic mani"etation o" the interet o" the $eron, who will $ro'abl%recei'e the obligation, in the acAuiition o" the contractual right )e alo

ha to mani"et that he will aume all the obligation an# re$onibilitieinherent in the contract o" $etroleum o$eration( an#

c Document that cre#it the technical-"inal ca$acit% an# e&$erience o" the$ro$oe# $eron, who will $ro'abl% recei'e the obligation an# right, inrelation to the cla o" $etroleum o$eration ob*ect o" the re$ecti'econtract, in con"ormit% with the $arameter etablihe# in article 1, 18,an# 0 o" thi regulation

7hen it i the cae o" a *oint o$eration, there mut a$$ear the reAuet o"not onl% the contractor but alo other aociate contractor, gi'ing their

com$liance to the $ro*ecte#, tran"erence o" right

Ar!"#$ 31%- PROCESS OF THE RE)UEST% The initr% will obtain the*u#gment that are uitable to etablih the "ollowing:

a +" the $ro$oe# $eron $robabl% recei'ing the right an# obligationaemble the necear% reAuirement to acAuire "rom the contractor thecontractual right that he claim( an# i" he i ha the ca$acit% to "ul"ill theobligation an# contractual re$onibilitie(

b +" the $ro*ecte# tran"er im$lie ome #ia#'antage "or the interet o" thecountr% or it $etroleum $olitic(

c +n it cae, which a##itional con#ition can be #etermine# when the tran"eri being authori!e#(

# +" the contractor i ol'ent with the .tate a "or o""ere# wor? an# $a%mentin con"ormit% with the Law, thi regulation an# the contract( an#

e =ther circumtance that it i $ertinent to conign

Ar!"#$ 3&%- COMMISSIONS OPINION% =nce the *u#gement an# thein"ormation an# in the $re'iou article i gathere#, the


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Ar!"#$ 34%- DEED, RECORD AND PUBLICATION% Grante# theauthori!ation o" tran"er, $reente# the corre$on#ing guarantee an# cre#ite#the $a%ment o" the a#minitrati'e re$ecti'e rate "or the $eron $ro$oe# to$robabl% recei'e the right an# obligation, he will $reent to the initr% aminute o" the contract o" tran"er "or it a$$ro'al =nce the minute i a$$ro'e#,

one will be able to ign the contract o" tran"er, which will rie u$ to $ublicwriting, in which the te&t o" the authori!ation mut be inerte#

The contract o" tran"er will be $ublihe# in the =""icial Diar%, at the coto" the interete# $art%, a co$% o" the abo'e mentione# $ublication mut be$reente# +n thi co$% houl# be inerte# the igne# contract an# tetimon% o"the $ublic re$ecti'e writing to the Petroleum ecor#, "or the e""ect o" itincri$tion in the re$ecti'e recor#

rom the #ate o" the $ublication o" the contract o" tran"er in the =""icialDiar%, the $eron $ro$oe# to $robabl% recei'e the right an# obligation will be

accounte# a the contractor "or all the legal an# contractual e""ect

CHAPTER VICONSTITUTION OF SERVITUDES, TEMPORARY OCCUPATION AND

E'PROPRIATION

Ar!"#$ 3%- ENTRANCE TO AREAS% +n area $ro$ert% o" the .tate thetu#ie necear% will be able to be $ractice# "or the acti'itie to which the Lawre"er( a well a ta?ing am$le o" the oil, intalling #e'ice an#, in general, tocarr% out an% acti'it% necear% "or the #ue e&ecution o" $etroleum o$erationob*ect o" a contract or $ermiion +n the cae o" area o" $ri'ate or munici$al$ro$ert%, the be"ore mentione# acti'itie will be able to be reali!e# not be"orebeing in agreement with the owner or hol#er o" the abo'e mentione# area

The #amage that are caue# mut be in#emni"ie# at the ma*orbrie"ne, accor#ing to agreement between the owner, or hol#er o" the area,an# the $eron in charge o" ha'ing caue# them

+n cae o" not being in agreement with the owner or hol#er o" the area in

which the $etroleum o$eration will be lea#, it will be ub*ecte# to theregulation in article / o" the Law

Ar!"#$ 3%- CONSTITUTION OF SERVITUDES, TEMPORARYOCCUPATION AND E'PROPRIATION%or the a$$lication o" the regulation inarticle / o" the Law, in or#er to $ro'e in e'er% cae the utilit% or $ublic nee#,the initr% will reAuet to the Direction to #eclare which rule, "rom thementione# one, turn out to be le bur#enome "or the owner or hol#er o" thearea, an# which i mot a#a$te# "or the $ur$oe that i $roecute# 6 oon a$oible, the tem$orar% occu$ation will be choen

Ar!"#$ 3.%- RESTRICTIONS% 2o#i"ie# b% article o" Go'ernmental6greement Number 53-9


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the initr% will communicate it to the unici$alitie an# re$ecti'e intitution,which will not be able to grant $ermiion o" contruction or recontruction inthe area abo'e mentione#, unle the% $oe an e&$re authori!ation o"the initr% +n thi authori!ation, the limitation o" the er'itu#e or occu$ationmut be tate#

7hen it i the cae, the initr% o"


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Ar!"#$ 40%- SANCTION FOR LAC( OF RECORD FREED ASSETS%2o#i"ie# b% 6rticle 5 o" the Go'ernmental 6greement Number 1/5-005 Thecontractor, contractor o" $etroleum er'ice, ubcontractor o" $etroleumer'ice, an# the hol#er o" a $ermiion that will not et in hi countable recor#

the in"ormation re"erre# to the im$ort material un#er the regime o" tem$orar%u$enion, re"erre# to the 6rticle 5, incie b o" the Law, will be anctione# aetablihe# b% article o" the ame Law

Ar!"#$ 41%- FI'ATION OF CUSTOMS BAIL% 26bolih b% the 6rticle 5o" the Go'ernmental 6greement Number 1/5-005

Ar!"#$ 4&%- SCALE TO FI' THE BAIL AMOUNT% 26bolih b% the 6rticle5 o" the Go'ernmental 6greement Number 1/5-005

Ar!"#$ 43%- INCREASE OF THE AMOUNT OF CUSTOMS BAIL%

26bolih b% the 6rticle 5 o" the Go'ernmental 6greement Number 1/5-005

Ar!"#$ 44%- PREFERENCE )UALIFICATION% The contractor,contractor o" $etroleum er'ice, the ubcontractor o" $etroleum er'ice, an#the hol#er o" $ermiion will gi'e $re"erence to $ro#uct an#or Guatemalanaet, when thee can be acAuire# in eAuall% $ro"itable con#ition with regar#to their Aualit%, $rice, a'ailabilit% in time, an# in the nee#e# Auantitie thatcorre$on# to the intention "or which the% are #etine# Li?ewie, the $eronbe"ore mentione# will gi'e $re"erence to Guatemalan er'ice, $ro'i#ing thatthee er'ice can be acAuire# in eAuall% $ro"itable con#ition com$are# wither'ice o" "oreign origin

Ar!"#$ 4%- GUATEMALAN SERVICES% 2o#i"ie# b% 6rticle / o" theGo'ernmental 6greement Number 1/5-005 or the e""ect o" the regulationti$ulate# in the 6rticle o" the Law, will coni#er a Guatemalan er'icethoe that houl# be $ro'i#e# b% natural Guatemalan or "or citi!en, or "orlegal $eron contitute# in the e$ublic

Ar!"#$ 4%- PRODUCTS AND GUATEMALAN ASSETS% 2o#i"ie# b%6rticle o" the Go'ernmental 6greement Number 1/5-005 +t will beconi#ere# a Guatemalan $ro#uct an# aet thoe $ro#uce# in the countr%

or ha'e been mo#i"ie# ubtantiall% or aemble# in it mot in the e$ublic

Ar!"#$ 4.%- PRODUCTS, ASSETS AND2OR SERVICES DIRECTORY%26bolih b% the 6rticle 5 o" the Go'ernmental 6greement Number 1/5-005

CHAPTER VIII

E'CLUSIVE FUNDS

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Ar!"#$ 48%- FUNDS FOR TRAINING% 2o#i"ie# b% article 8 o"Go'ernmental 6greement Number 53-9 The contribution that thecontractor will ma?e bae# on the regulation on article 1 o" the Law willbecome e""ecti'e in the "irt "i"teen 215 #a% o" e'er% contract %ear #uring the$erio# o" e&$loration, or $hae o" e'aluation accor#ing to the cae

+n the $erio# o" e&$loitation, the "irt contribution "or training will be within"i"teen 215 #a% counte# "rom the e""ecti'e #ate o" election o" the "irt area o"e&$loitation, in $ro$ortional "orm "or the ret o" the calen#ar %ear, ta?ing intoaccount the contribution ma#e "or the currentl% contract %ear, an# "rom then thecontribution will be #one on the "irt "i"teen 215 #a% o" e'er% calen#ar %ear

Ar!"#$ 4/%- RETENTION OF FUNDS% The thing etablihe# in the$re'iou article i without $re*u#ice o" the amount that the initr% authori!e$re'iou o$inion o" the


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The contract that "or thi e""ect are o""iciate# will be a$$ro'e# b% meano" 6greement that the initr% will emit in e'er% cae

CHAPTER I'ENDING OF THE CONTRACTS

Ar!"#$ 3%- UNILATERAL ENDING OF THE CONTRACTS% +n thecontract there will be inclu#e# the right o" the contractor to gi'e the contractan# en#ing at an% moment( not without communicating it in writing, an# inauthentic "orm to the initr% at leat with a month o" antici$ation to the$ro$oe# #ate in or#er it #eciion to be e""ecti'e with the con#ition o" $a%ing tothe .tate the amount o" the hanging obligation, a well a to "ul"ill with theobligation #eri'e# "rom the contract that are a$$licable at the moment o" itcom$letion

7hen the en#ing o" a contract i "oreeen, the De$artment will ha'e to

emit the #i$oition relate# to the tran"erence o" aet, o$eration, an# the$lan o" aban#on in the "orm etablihe# in


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e 7hen the contractor re$eate# or erioul% #oe not "ul"ill with theobligation o" the contract(

" 7hen the contractor incur re$eate#l% in the #ela% o" an% $a%ment thatcorre$on# to the .tate( an#

g 7hen the contractor will ma?e ue o" the aet which cot will be $artialor totall% reco'ere# in con"ormit% with the contract, without theauthori!ation to which article o" thi regulation re"er

Ar!"#$ %- CAUSE OF NOT-AUTOMATIC ENDING IN CONTRACTSOF E'PLORATION AND2OR E'PLOITATION 4ei#e the reaon o" en#ingetablihe# in the $re'iou article, the contract o" e&$loration an#ore&$loitation will inclu#e, without $re*u#ice o" other caue $eci"ie# in the amecontract, the "ollowing reaon "or not-automatic en#ing:

a 7hen the contractor #oe not renew the guarantee to re"er in article 11/o" thi regulation(

b 7hen the commercial $ro#uction o" all the area o" e&$loitation area o"contract "inihe( an#

c +" the o$eration o" #e'elo$ment an#or o" commercial $ro#uction willto$ in a $erio# greater than ninet% 290 conecuti'e #a%, e&ce$t"ortuitou reaon ma*or "orce a$$ro$riatel% a$$ro'e#

Ar!"#$ .%- PROCEDURE FOR NOT-AUTOMATIC ENDING OF ACONTRACT%2o#i"ie# b% article 8 o" Go'ernmental 6greement Number 1/5-005 +" in the o$inion o" the initr% there e&it reaon that moti'ate the notautomatic en#ing o" a contract the "ollowing $roce#ure mut be ober'e#:

a The e&itence o" the reaon or reaon will be noti"ie# to the contractorin writing, $eci"%ing the moti'e, the meaurement necear% to correctit or to com$enate it +" the lat tatement wa $oible legal an# theintention o" the initr% o" gi'ing the contract an en#ing, i" the reaon inot correcte# or com$enate# accor#ing to the cae( an#

b +" the notable reaon i not correct or com$enate# within the term o"ninet% 290 #a% counte# "rom the #ate o" the noti"ication, the initr% will$rocee# to #eclare the en#ing o" the contract bae# in the in'o?e#moti'e, or#ering that the e&iting guarantee houl# be #one e""ecti'ean# #e#ucing the re$onibilitie o" the cae, i" it will $rocee#

Thi $roce#ure i not a$$licable to "ortuitou cae or ma*or "orcea$$ro$riatel% $ro'en

Ar!"#$ 8%-RESOLUTION OF ENDING The reolution that #eclare thenot automatic en#ing o" a contract will be emitte# a"ter the initr% ha recei'e#

the o$inion o" the Direction an# o" the


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CHAPTER 'OPERATIONS AT THE E'PENSE OF THE STATE

Ar!"#$ /%- CONTRACTS OF PETROLEUM SERVICES WITH THEGOVERNMENT% 2o#i"ie# b% article 9 o" Go'ernmental 6greement Number1/5-005 7hen the Go'ernment, in ue o" the "acult% "oreeen in article / o"the Law, #eci#e to e&ecute $etroleum o$eration "or itel" will be able to #o itb% mean o" contract o" $etroleum er'ice( being un#ertoo# a uch contractthe one in which a contractor o" $etroleum er'ice un#erta?e be"ore theGo'ernment "or $a%ment #etermine# in the contract to carr% out the $eci"icer'ice with regar# to $etroleum o$eration with the eAui$ment, machiner%,an# technolog% nee#e# to e&ecute the o$eration ob*ect o" the contract

.uch contract o" er'ice will be able to re"er to the contruction,

managing, or o$eration o" an% intallation, eAui$ment or $lant o" an% ?in#, an#the e&ecution o" an% $etroleum o$eration

The minimal reAuirement o" thee contract will ha'e to ta?e inconi#eration the "ollowing bae:

a The obligation to carr% out the o$eration acro $rogram an# $re'ioul%a$$ro'e# bu#get, a well a the "i&ation o" the a$$licable "ine when thecontractor #oe not e&ecute the wor? or onl% carrie them out $artiall%(

b The amount an# the "orm o" $a%ment "or the contracte# er'ice(

c The term o" the contract will not be more than ten 210 %ear, renewabl% in$erio# o" "i'e 25 %ear at con'enience o" the $art, u$ to a ma&imum o"twent%-"i'e 25 %ear(

# The ta&e, rate, $a%ment, contribution, an# charge that the contractoro" $etroleum er'ice will be boun# to $a% accor#ing to the contract( an#

e +n cae o" contract o" $etroleum er'ice o" e&$loration an#or e&$loitationo" h%#rocarbon claue #, h, i an# ? o" the article // o" the Law will be

a$$lie# b% analog%

The Go'ernment through the initr% will emit b% mean o"Go'ernmental 6greement the re$ecti'e regulation that contain the$roce#ure o" ubcri$tion an# o""er o" thee contract

CHAPTER 'IE'PLOITATION

Ar!"#$ 0%- E'PLOITATION CONTRACT% 26bolihe# b% article number 5 o"

Go'ernmental 6greement Number 1/5-005

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TITLE II

CONTRACTS OF E'PLORATION AND E'PLOITATION

CHAPTER IBLOC(S AND AREAS

Ar!"#$ 1%- SELECTION OF BLOC(S% 2o#i"ie# b% article 10 o"Go'ernmental 6greement Number 1/5-005 7ith the e&ce$tion o" $ree&itingcontract area, the initr% will #o the election o" bloc? #etine# to thee&$loration or e&$loitation o" h%#rocarbon or both $etroleum o$eration inNational territor%, #one in the continental $lat"orm an# it economic e&clui'e!one The i#enti"ication o" the bloc? will be #one with number an# letter toi#enti"% it $erio# o" election an# location

The abo'e mentione# election mut be ub*ect to initerial 6greementa$$ro'al, which will ha'e to be $ublihe# imme#iatel% in the =""icial Diar%,inclu#ing a ma$ in where there houl# a$$ear the bloc? electe# in con"ormit%with thi article

Ar!"#$ &%- SUGGESTIONS% 2o#i"ie# b% article 10 o" Go'ernmental6greement Number 53-9 6t an% time, the interete# $artie will be able to#o uggetion or ober'ation The% ha'e to be reaone# an# #ocumente#with regar# to the electe# bloc? or other !one in which bloc? can beelecte# #etine# or e&clu#e# "rom the e&$loration, e&$loitation, or both$etroleum o$eration

The uggetion or ober'ation will be #irecte# an# $reente# to theDirection, which will re$ort them to the initr%, to ta?e them into account in theelection o" bloc?

Ar!"#$ 3%-26bolihe# b% article number 35 o" Go'ernmental 6greementNumber 53-9

Ar!"#$ 4%- ORIGINAL AREA OF A CONTRACT%The original area o" acontract o" e&$loration an#or e&$loitation woul# contain one or more bloc?, u$

to a ma&imum o" i& 2/ bloc? with the e&tenion etablihe# in article /0 o"the Law

Ar!"#$ %- BLOC(S IN LAND AND OFFSHORE% 2o#i"ie# b% article11 o" Go'ernmental 6greement Number 53-9 The ur"ace o" a bloc? will belocate# $art in terretrial !one an# in maritime !one 6n% bloc? with more than"i"t% $ercent 250E o" it ur"ace locate# in terretrial !one will be coni#ere# aa terretrial bloc? 6n% bloc? with more than "i"t% $ercent 250E o" it ur"acelocate# in maritime !one will be coni#ere# a maritime bloc?

+n the election in#icate# in article /1 o" thi regulation, the bloc?

coni#ere# a terretrial an# maritime will be clearl% i#enti"ie# a uch

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Ar!"#$ %- DELIMITING% The bloc? will be #elimite# b% $arallel an#meri#ian #e"ine# in #egree, minute, an# com$lete econ#( e&ce$t when thiwill not be $oible #ue to the $reence o" international bor#er, or#e$artmental limit, or a coneAuence o" other $ree&iting area o" contract, oran% area reer'e# "or national $ar? or an% another $ur$oe in interet o" the

$atrimon% o" the Nation

The area o" e&$loitation that a contractor elect, a well a the areathat he return will be #elimite# b% $arallel an# meri#ian, #e"ine# in #egree,minute, an# com$lete econ#, or b% the limit o" the original area o" contract

Ar!"#$ .%- MILESTONES IN TERRESTRIAL +ONES 2o#i"ie# b%6rticle 1 o" Go'ernmental 6greement Number 53-9 +n cae o" terretrial!one, the contractor will #elimit the area o" e&$loitation with bor#eringmiletone, when it i reAuire# b% the Direction

Ar!"#$ 8%- RETURN% +n a contract o" e&$loration an# e&$loitation, thecontractor will return the $ercentage o" e'er% bloc? mentione# in hi contract,in the $erio# ti$ulate# in the ame one +n no cae, the ur"ace that he returnto the .tate woul# be le than two thouan# 2,000 hectare, e&ce$t in cae:

a The ur"ace o" the bloc? i le than ten thouan# 210,000 hectare(

b The $ercentage o" returning #o not allow it( an#

c The ur"ace o" returning are the one re"er on article o" thiregulation

The area o" remaining e&$loration a"ter the return o" one or moreur"ace i #one will be able to be #icontinuou or will be able to be integrate#in other ur"ace

The contractor will return "i"t% $ercent 250 E o" e'er% bloc? that containthe original area o" contract, not a"ter "inihing the "i"th %ear o" contract

Ar!"#$ /%- BREACH OF RETURN% +n cae the contractor #oe "ail toreturn in the ti$ulate# o$$ortunitie the $ercentage o" the bloc?, incon"ormit% with the contract an# thi regulation, the initr% will elect the area

that will be retore# to national reer'e, without $re*u#ice o" the $a%ment o" thea#minitrati'e rate to which article 51 o" thi regulation re"er 6gaint thereolution that "or thi e""ect the initr% emit, no a$$eal will be a#mitte#

Ar!"#$ .0%- SELECTION AND RETENTION% +n cae the contractor#eclare one or more commercial #ico'erie be"ore he "inihe the $erio# o"e&$loration or the e&tenion to which article 8 o" thi regulation re"er, he willbe able to elect an# to retain a area o" e&$loitation "or e'er% commercial#ico'er% a ur"ace not ma*or than ten thouan# 210,000 hectare ini#e thearea o" contract

+n $ecial cae in which the magnitu#e o" a reer'oir nee# ane&tenion ma*or than ten thouan# 210,000 hectare, the contractor will be able

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to electe# a ur"ace u""icient to co'er thi reer'oir, being 'eri"ie# be"ore theDirection bae# in $rinci$le generall% acce$te# in the $etroleum internationalin#utr%

6n area o" e&$loitation woul# inclu#e a ur"ace greater than one bloc?

inclu#e# in the original area o" the contract

6n% area o" e&$loitation, inclu#ing the one retaine# a $ro'iionale&$loitation area, will limit itel" to a ur"ace u""icient to co'er the alrea#%mention reer'oir, a#*uting the e&tenion an# "orm a in#icate# article // an#/ o" thi regulation

Ar!"#$ .1%- MA'IMUM E'TENSION% =" e'er% bloc? that contain theoriginal area o" contract, terretrial or maritime, the contractor will be able toelect one or more e&$loitation area( an# retain a ma&imum the "i"t% $ercent250 E o" e'er% bloc?F area Ne'erthele, the contractor will be able to elect

an# to retain e&$loitation area which ur"ace a## in whole a ma&imum o" onehun#re# "i"t% thouan# 2150,000 hectare

Ar!"#$ .&%- NATIONAL RESERVES% 6ll area that ha'e been returne#will automaticall% become a $art o" the national "rom the e""ecti'e #ate o" return

Ar!"#$ .3%- DECLARATION OF COMERCIALITY%2o#i"ie# b% article 13o" Go'ernmental 6greement Number 53-9 6n% time the contractor #eclarethe commercialit% o" a #ico'er% he will reAuet the a$$ro'al o" the e&$loitationarea that co'er the $etroleum "iel# that will accom$an% the re$ort o" e'aluationin#icate# in article 19 o" thi regulation

The Direction bae# on the technical-economic in"ormation that it obtainin the re$ort o" e'aluation, will chec? the #eclaration o" commercialit%( an# a a"urther reult will a$$ro'e or mo#i"% the area o" reAuete# e&$loitation incon"ormit% with regulation etablihe# in thi regulation

The contractor will be able to #eclare the commercialit% o" a "iel#, e'enwhen it i #etermine# to the contruction or $lace# in o$eration o" a %tem o"tran$ort

The a$$robator% reolution o" the commercialit% o" a "iel# will e&$re the#ate o" etablihment o" the abo'e mentione# commercial "iel#

+t i $rohibite# "or the contractor to #eclare the commercialit% o" a#ico'er%, which i not bae# an# $ro'e# with technical an# economicin"ormation generall% acce$te# in the $etroleum international in#utr% an# inrelation with the tatement etablihe# on thi regulation

Ar!"#$ .4%- COMMUNICATION OF RETURN AND2OR SELECTION%The contractor will communicate the Direction the area that he houl# returnan#or thoe that he elect a e&$loitation area with at leat a month o"

antici$ation "rom the #ate in which he reAuet that the reignation or electionwill be e""ecti'e 'er% communication to the Direction will be #e"initi'e an# will

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not be able to be mo#i"ie# b% the contractor a"ter the #ate o" thecommunication, e&ce$t the tatement "oreeen in the "ollowing article

Ar!"#$ .%- MODIFICATION OF THE E'PLOITATION AREA% The areao" e&$loitation will be mo#i"ie#, when a a reult o" $oterior $er"oration

acti'itie are #one in the e&$loitation area an# $ro'i#ing that one o" the"ollowing thing ha$$en #uring the $erio# o" e&$loration:

a +" another commercial "iel# i #ico'ere# in the ame e&$loitation area,which e&tenion remain $artiall% inclu#e# in the ame one( an#

b +" it i 'eri"ie# that the e&tenion o" the commercial "iel# that ga'e origin tothe e&$loitation area i bigger than the originall% etablihe# e&tenion,$ro'i#ing that the area o" a'ailable e&$loration in the area o" contract allowit

or the cae mentione# in the claue a o" thi article, the ubeAuent$roce#ure will "ollow:

i 7hen more o" the "i"t% $ercent 250 E o" the new commercial "iel# i locate#ini#e the e&$loitation area, it will be e&ten#e#( or

ii 7hen le o" the "i"t% $ercent 250 E o" the new commercial "iel# i locate#ini#e the e&$loitation area, a new e&$loitation area will be electe# to co'erthe new #e$oit, e&clu#ing the ur"ace co'ering the #e$oit that ga'e originto the area o" original e&$loitation

The tatement arrange# in the lat two 2 claue will be a$$licable$ro'i#ing that the area o" a'ailable e&$loration in the area o" contract allow it,an# there are not acce$te# area o" national reer'e or area o" anothercontract

Ar!"#$ .%- APPROVAL OF RETURN OR SELECTION% 2o#i"ie# b%6rticle 1 o" Go'ernmental 6greement Number 53-9 The Direction willa$$ro'e the return or election o" e&$loitation area, total or $artl%, $ro'i#ingthat:

a +" the area i a rectangle, the i#e o" the ame one are orientate# "romNorth to .outh an# at to 7et( i" it i not a rectangle, it con"igurationi "orme# b% line orientate# "orm North to .outh an# at to 7et(

b The area or area o" e&$loitation electe# ini#e the area o" contractco'er a minimum o" the reer'oirF 'ertical $ro*ection or #eclare#commercial reer'oir

There are e&em$te# "rom the reAuirement o" "orm an# con"iguration thereturne# e&$loitation area an# thoe o" e&$loitation that #o not a#*ut to uchreAuirement #ue to the $reence o" international bor#er, or not a'ailable

area to reali!e o$eration o" e&$loration, e&$loitation, or becaue o" the limito" the original contract area

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6$art "rom the e&ce$tion contem$late# in the $re'iou $aragra$h, the#elimitation to which thi article re"er will ub*ect itel" to the tatementetablihe# in article // o" thi regulation

Ar!"#$ ..%- RETURN OF PART OF E'PLOITATION AREAS% 7ithout$re*u#ice o" ha'ing electe# an e&$loitation area, the contractor will be able toreturn $art o" the mentione# e&$loitation area( in which cae, the returne# areawill not ha'e to be a minor to "i'e $ercent 25 E o" the e&$loitation areaoriginall% electe# in con"ormit% with article // an# / o" thi regulation

6r!"#$ .8%- RETENTION OF PROPOSED AREA% 6 contractor will beable to retain $ro'iionall% the area o" $ro$oe# e&$loitation until the Directiona$$ro'e the electe# area, e'en a"ter an% %ear o" contract o" the $erio# o"e&$loration or o" the e&tenion o" the ame one ha e&$ire#, in cae thereolution o" a$$ro'al i not emitte# be"ore the en#ing o" the abo'e mentione#

$erio# Thi retention woul# $rea# until there the corre$on#ing reolution iemitte# Thi reolution, in an% cae, will not be able to e&cee# more than onemonth counte# "rom the en# o" the contract %ear o" the e&$loration $erio#, or o"the e&tenion o" the ame one, a it i the cae

The regulation $eci"ie# in thi article are without $re*u#ice o" the wor?to which the contractor mut com$romie i" he want to retain the e&$lorationarea at the en# o" e'er% contract %ear, counte# "rom the en# o" the thir# %ear o"contract

Ar!"#$ ./%- RETENTION OF AN AREA IN E'TENSION OFE'PLORATION% +n cae there ha been grante# the e&tenion o" the $erio# o"e&$loration, to which article 8 o" thi regulation re"er, the contractor woul#retain u$ to the en# o" the $erio# o" e&tenion an area o" $ro'iionale&$loitation, in cae he ha not reali!e# the reAuet o" election o" an area o"e&$loitation at that time

CHAPTER IICOMPROMISED WOR(S

Ar!"#$ 80%- CONTRACTUAL COMMITMENTS% 2o#i"ie# b% 6rticle 11 o"Go'ernmental 6greement Number 1/5-005The contract o" e&$loration an#e&$loitation will e&$re the aw?war# wor? that the contractor will e&ecute,among which can be inclu#e#:

a The territorial e&tenion, magnitu#e, or #enit% o" the geological ur"acetu#ie(

b The territorial e&tenion, magnitu#e, or #enit% o" the geo$h%ical tu#iean#or the length o" the eimic line(

c The territorial e&tenion, magnitu#e, or #enit% o" the geochemicaltu#ie(

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# The number an# #e$th o" the well or e&$lorator% well, or o" an% othert%$e an# their ob*ect to be reache#(

e =ther wor?, tu#ie, or inter$retation to e&ecute( an#

" The term in which it will initiate an# e&ecute with the acAuire#commitment

7ith e&ce$tion o" claue #, e an# " o" thi article, other wor? woul#be coni#er o$tional in the abo'e mentione# contract

CHAPTER IIIPERIOD OF E'PLORATION AND E'TENDS

Ar!"#$ 81%- DURATION OF THE E'PLORATION PERIOD% 2o#i"ie# b%6rticle 1 o" Go'ernmental 6greement Number 1/5-005 The $erio# o"e&$loration will begin in the e""ecti'e #ate an# will en#:

a 7hen the contractor ha electe# one or e'eral e&$loitation area thata a whole a## u$ to the limit etablihe# in article 1 o" thi regulation,e'en be"ore "inihing the "irt i& 2/ %ear o" contract, or in the cae o"the $eci"ic contract(

b 7hen the i&th %ear o" contract "inihe, e'en when the contractor hanot electe# "i"t% $ercent 250 E o" e'er% bloc? that contain the originalcontract area a e&$loitation, e&ce$t "or the tatement "oreeen in article//, claue g o" the Law(

c or total reignation o" the e&$loration area(

# +" the contractor #oe not "in# an% commercial #ico'er% be"ore the i&th%ear o" the contract, e&ce$t "or the tatement "oreeen in article //,claue g o" the Law( an#

e or en#ing o" the contract #ue to an% reaon

Ar!"#$ 8&%- RE)UEST OF E'TENSION% 2o#i"ie# b% 6rticle 13 o"Go'ernmental 6greement Number 1/5-005 The initr% will coni#er thee&tenion o" the e&$loration $erio# in a term not ma*or than one 21 %ear, incae towar# the en# o" the i&th 2/ th %ear o" e&$loration, or the $erio# that wa$eci"ie# at the contract, there were being e&ecute# or nee#e# to #o e'aluationtet in at leat one 21 e&$lorator% well +n the re$ecti'e reAuet, which willha'e to a$$ear be"ore the Direction, the contractor will in#icate the geogra$hicallocation or the $ro'iional area o" e&$loitation an# will $reent an a##itional$rogram that will contain:

a The wor? $rogram to be reali!e#(

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b The bu#get o" the wor? $rogram( an#

c The guarantee o" "ul"illment

Ar!"#$ 83%- STUDY OF THE RE)UEST OF E'TENSION%2o#i"ie# b%

6rticle 1 o" Go'ernmental 6greement Number 1/5-005 To coni#er thee&tenion in#icate# in the $re'iou article, bei#e the etablihe# in the ameone, the "ollowing will be ta?en into account:

aThat the reAuet ha been $reente# at leat three 23 month be"ore thematurit% o" the i&th %ear o" contract( e&ce$t $ecial cae $ro$erl%*uti"ie#, in which cae, the reAuet will a$$ear be"ore "inihing the i&th%ear the contract(

bThat the contractor ha i#enti"ie#, at leat, a $oible reer'oir on the baio" electrical recor# an# other metho#, or that e&it mani"et e'i#ence

o" a reer'oir, or that tet o" e'aluation are being e&ecute#(

cThe tet or tet o" e'aluation that are necear% will not ha'e to, in an%cae, be attribute# to #ela% $ro'o?e# intentionall% b% the contractor(

#The contractor will ha'e to how along the en"orcement o" the contract thea$$ro$riate #iligence(

e6n% *u#icial litigation will not ha'e to e&it( an#

" The contractor will ha'e to be ol'ent with the .tate in regar# to thecom$romie# wor? an# $a%ment tate# in the Law, thi regulation, an#the contract

6"ter the tu#% o" the reAuet to which the $re'iou article re"er icarrie# out, the Direction with it o$inion will $a it to the initr% with a co$%to the


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c The term o" the grante# e&tenion(

# The amount to guaranteeing an# the term to $reent the corre$on#ingguarantee( an#

e =ther element that are coni#ere# necear%

The reolution will $ro#uce it #eire# reult "rom the #a% a"ter theen#ing o" the i&th %ear o" e""ecti'ene o" the contract, $ro'i#ing that thecontractor cre#it be"ore the initr% to ha'e carrie# out the $a%ment o" thecorre$on#ing a#minitrati'e rate an# ha $reente# the nee#e# guaranteeThe reolution will "inih in the e""ecti'e #ate o" election or at the en# o" theterm that claue c o" thi article re"er

or the $a%ment o" the a#minitrati'e rate an# $reentation o" the

guarantee, the contractor will ha'e an ine&tenible term o" "i'e 25 #a% counte#"rom the #ate the reolution i noti"ie# +" thi term i #ue without ha'ing "ul"ille#the cre#iting o" the tatement be"ore in#icate#, the reolution will ta% withoutan% e""ect an# coneAuentl% the contract will en# automaticall%

or the cae etablihe# in the lat $aragra$h o" claue a o" the$re'iou article, the Direction will emit a $ro'iional reolution e&ten#ing the$erio# o" e&$loration "or thirt% 230 #a% while the #e"initi'e reolution i emitte#

CHAPTER IVE'PLOITATION PERIOD

Ar!"#$ 8%- DURATION OF THE E'PLOITATION PERIOD% Thee&$loitation $erio# "or e'er% area o" e&$loitation will begin "rom the e""ecti'e#ate o" election, in con"ormit% with thi regulation, an# will continue u$ to thecom$letion o" the contract or o" the commercial $ro#uction in cae thi ha$$en"irt

Ar!"#$ 8%- CONTINUATION OF THE E'PLORATION PERIOD%2o#i"ie# b% 6rticle 1/ o" Go'ernmental 6greement Number 1/5-005 +" the

e&$loitation $erio# in an area o" e&$loration begin be"ore the en# o" the i&thcontract %ear, the $erio# o" e&$loration will continue "or the area out o" the areao" e&$loitation inclu#e# ini#e the area o" contract

Ar!"#$ 8.%- APPROPIATE DEALS IN THE E'PLOITATION OFCOMMERCIAL FIELDS% The contractor will #elimit an# e&$loit with thea$$ro$riate #iligence the commercial "iel# The contractor will com$lete in the"irt "our 2 %ear o" the e&$loitation $erio# o" e'er% area o" e&$loitation the#e'elo$ment o" a commercial "iel#

+t will be coni#ere# that a commercial "iel# i com$letel% #e'elo$e#, in

agreement to the $rogram o" #e'elo$ment a$$ro'e# to that article 130 o" thiregulation re"er, when:

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a The contruction o" the e&$loitation %tem o" h%#rocarbon ha beencom$lete# an# it i in o$eration( or, when it i the cae o" a contructiono" a common %tem to han#le the i#eal $ro#uction(

b The number o" u""icient well ha been $er"orate# to achie'e the i#eal$ro#uction be"ore mentione#( an#

c 6 $lan, a$$ro'e# b% the Direction, ha been etablihe# to achie'e thei#eal $ro#uction

The contractor will #rill at leat one 21 #e'elo$ment well $er %ear ine'er% commercial "iel#, "rom the e""ecti'e #ate o" election u$ to com$leting the#e'elo$ment o" each well, or until he return the e&$loitation area where thecommercial "iel#2 are i" thi ha$$en be"ore

+" the contractor will com$lete the #e'elo$ment o" the commercial "iel#, incon"ormit% with the regulation in#icate# in the econ# $aragra$h o" thi article,be"ore the "irt "our 2 %ear o" the e&$loitation $erio# ha'e "inihe#, he will notbe oblige# to $er"orate the remain #e'elo$ment well in the in#icate# $erio#

The "act o" ha'ing com$lete# the #e'elo$ment o" the commercial "iel##oe not limit in an% "orm the continuation o" the $er"oration o" #e'elo$mentwell, e'en a"ter the "ourth mentione# %ear, when thi i necear% "or thee""icient reco'er% o" h%#rocarbon

Ar!"#$ 88%- DEVELOPMENT OF DISCOVERIES IN E'PLOITATIONAREAS% 7hen other reer'oir2 are #ico'ere# in commercial "iel#, to lea# tothe com$lete #e'elo$ment o" the new reer'oir, the initr% will be able toagree with the contractor the o$$ortunit% in which the abo'e mentione#reer'oir will be #e'elo$e# in con"ormit% with the #i$oition o" thi regulation

Ar!"#$ 8/%- SUSPENTION FOR ANNUAL SUCCESSIVE PERIODS%The initr%, at call o" the contractor an# with o$inion o" the


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c 7hen circumtance imilar to the one in#icate# in claue a or b,a$$ro$riatel% a$$ro'e# b% the o$inion o" the initr% $re'iou o$inion o"the


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Ar!"#$ /1%- RESOLUTION% The initr% will reol'e e'er% reAuet o"u$enion or e&tenion, to which the $re'iou two 2 article re"er, be"ore there$ecti'e calen#ar %ear begin

CHAPTER VE'PLORATION AND E'PLOITATION PROGRAMS

SECTION IE'PLORATION PROGRAMS

Ar!"#$ /&%- PRESENTATION% 2o#i"ie# b% 6rticle 1 o" Go'ernmental6greement Number 1/5-005 During the e&$loration $erio#, the contractor willannuall% $reent to the Direction three 23 co$ie o" the $rogram o" e&$loration,

which two 2 o" them will be in #igital "orm The "irt $rogram will be $reente#within the three 23 month "ollowing the e""ecti'e #ate an# the ubeAuent$rogram at leat three 23 month be"ore the beginning o" e'er% contract %ear

Ar!"#$ /3%- GENERAL CONTENT OF THE E'PLORATIONPROGRAM%2o#i"ie# b% 6rticle 18 o" Go'ernmental 6greement Number 1/5-005 The e&$loration $rogram will contain, in con"ormit% with the regulation o"thi


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+n or#er "or the reolution o" a$$ro'al o" uni"ie# wor? to ta?e $lace, thecontractor will ha'e to $reent in the three 23 #a% "ollowing the noti"ication o"the in#icate# reolution, the guarantee corre$on#ing to the uni"ie# $erio# toguarantee the "ul"illment o" the uni"ie# com$romie# wor?, which amount will

be eAui'alent to the ma&imum a$$licable "ine in cae the contractor #oe not"ul"ill the uni"ie# corre$on#ing wor?

+" the contractor #oe not "ul"ill the uni"ie# wor? in con"ormit% with theregulation in thi article, he will ha'e $a% the corre$on#ing "ine or, in it cae,the be"ore in#icate# guarantee will become e""ecti'e

Ar!"#$ /.%- UNIFIED OPINIONS REPORT OF E'PLORATION% 7ithin"ort% "i'e 25 #a% "ollowing the #ate o" recei$t o" the e&$loration $rogram, theDirection together with the De$artment o" 6u#it will #o the tu#% o" the re$ortThen the% will $a a co$% o" it to the initr% an# another one to the


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$erio# accor#ing to the #i$oition arrange# in article 8 an# 130 o" thiregulation

Ar!"#$ 100%- GENERAL CONTENT OF THE E'PLOITATIONPROGRAM%2o#i"ie# b% 6rticle 1 o" Go'ernmental 6greement Number 1/5-

005 The e&$loitation $rogram will contain, in con"ormit% with the regulationon thi


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# The in"ormation that the contractor coni#er to be uitable or necear%to be $reente#

Ar!"#$ 103%- E'PLOITATION BUDGET% The e&$loitation bu#get willcontain, in con"ormit% with thi regulation an# the #i$oition $eci"ie# in the


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the Direction together with the De$artment o" 6u#it will #o the tu#% o" the$rogram 6"ter that, the% will $a the re$ort on to the initr% with an# co$% tothe


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ii rom the net $ro#uction minu the ro%alt%:

1 The $art that the contractor will be able to retain "or thereco'er% o" cot, accor#ing to the contract, ti$ulating the

"raction that the contractor mut ell to the .tate to ati"% theinternal conum$tion(

The $art that the contractor will be able to retain aremuneration, ti$ulating the "raction that the contractor mutell to the .tate to ati"% the internal conum$tion(

3 rom the remaining $art, thi contitute the tate$artici$ation, the "raction that the .tate #eci#e to recei'e in$h%ical tate

The 'olume a$$ro'e# in con"ormit% with the lat claue o" thi article willbe "itte# Auarterl% accor#ing to the $roce#ure etablihe# in thi regulation

+n thi reolution, the initr% will in#icate the technical a$ect withregar#ing to the $ro#uction $rogram that, "or reaon o" the #e'elo$ment o" theacti'itie, will be able to be mo#i"ie# with $re'iou a$$ro'al, or with reAuiremento" the Direction

SECTION IIICOMMON DISPOSITIONS

Ar!"#$ 10.%- APPROVAL OF WOR( PROGRAMS OF E'PLORATIONAND2OR E'PLOITATION% 2o#i"ie# b% 6rticle 3 o" Go'ernmental 6greementNumber 1/5-005The initr% with $re'iou o$inion o" the Direction an# the


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Ar!"#$ 110%- DISAPPROVAL OF WOR( PROGRAMS% The wor?$rogram o" e&$loration an#or e&$loitation woul# be total or $artiall% #imie#onl% when:

a +t #oe not a#*ut itel" to the com$romie# wor? in con"ormit% with the

Law( the b%law( the re$ecti'e contract( an#, in it cae, to the $rogramo" #e'elo$ment(

b The wor? are not necear% or are coni#ere# to be e&cei'e "or thee""ecti'e e&ecution o" the $etroleum o$eration #eri'e# "rom the contract(

c The wor? can reult in unnecearil% cotl% o$eration(

# +t i not accom$anie# b% the necear% #ocumentation that etabliheor *uti"% the wor? $rogram

Ar!"#$ 111%- BUDGET DISAPPROVAL% 2o#i"ie# b% 6rticle o"Go'ernmental 6greement Number 1/5-005 +n#e$en#entl% o" thecorre$on#ing wor? $rogram, a bu#get woul# be total or $artiall% #imie# onl%when the reco'erable cot inclu#e cot not coni#ere# uch a the oneetablihe# in article 19 o" thi regulation, or that the bu#get #oe not agreewith the #i$oition etablihe# in article 95 an# 103 o" thi regulation a it ithe cae

Ar!"#$ 11&%- TOTAL OR PARTIAL PROGRAM DISAPPROVAL% +n caethe initr% total or $artiall% #imie a wor? $rogram o" e&$loration an#ore&$loitation, or it re$ecti'e bu#get, he will arrange that the Direction gettogether with the contractor, a oon a $oible, to agree with themo#i"ication that are necear%( an#, bae# in thee #icuion, thecontractor will $ro$oe another $rogram an# bu#get, a#*uting it to the agree#mo#i"ication, ini#e the term "i&e# "or uch an e""ect "or the initr% +" the% #onot come cloe to an% agreement, the initr% will ta?e a reolution ta?ing inconi#eration the $oint o" 'iew o" the contractor, the Direction, an# the#i$oition etablihe# in the Law, thi regulation, an# the re$ecti'e contractto ma?e $oible the continuation o" the e&ecution o" the com$romie# wor?

+" the Direction thin? the $rogram o" $ro#uction i ina#eAuate, the ame

$roce#ure will be "ollowe#

Ar!"#$ 113%- ADDITIONAL OR E'PLANATORY INFORMATION% Theinitr% or the Direction will be able to reAuire "rom the contractor, at an%moment, a##itional or e&$lanator% in"ormation about the $rogram

SECTION IVREVIEW OF PROGRAMS

OF E'PLORATION AND2OR E'PLOITATION

Ar!"#$ 114%- CHANGES% 7hen a contractor houl# coni#er necearil%to #o change to a e&$loration an#or e&$loitation $rogram alrea#% a$$ro'e#,

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$ro'i#ing that it #oe not a""ect the com$romie# wor?, will $reent to theDirection a brie" $ro$oing the mo#i"ication o" the e""ecti'e $rogram

6n% change or re'iew o" a e&$loration an#or e&$loitation $rogram, toe""ect o" being a$$ro'e#, will "ollow the $roce#ure "oreeen in thi


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7hen the contractor #oe not "ul"ill, total or $artiall%, with thecom$romie# wor?( he will ha'e to ma?e the corre$on#ing "ine e""ecti'e, or init cae, the guarantee be"ore in#icate# will become e""ecti'e

or the "ollowing $hae o" e&$loration or e&$loitation, the contractor will

$reent the guarantee at leat two 2 wee? be"ore the beginning o" e'er% %earin which the $eci"ic wor? houl# be e&ecute#

Pre'iou to gi'e the e&tenion to the $erio# o" e&$loration, which article8 o" thi regulation re"er, i grante#, the contractor will ha'e to guarantee thewor? $rogram that he will e&ecute in con"ormit% with article 8 o" the mentione#regulation

The guarantee an# "ine re"erre# in thi cha$ter will be "i&e# in baewith the annual bu#get o" the com$romie# wor? an# $reente# to theDirection, in cae there were not $reente# in time

Ar!"#$ 11.%- E'TENSION OF GUARANTEES% +n cae a contractor$reent an e&$loitation $rogram, accor#ing to article 130 o" thi regulation, aconeAuence o" a commercial #ico'er%, he will guarantee, in con"ormit% withthe $re'iou article, the #e'elo$ment well that are inclu#e# in the re$ecti'e$rogram

Ar!"#$ 118%- REDUCTION OR CANCELLATION OF GUARANTEES% 6tcall o" the contractor, the Direction with $re'iou o$inion o" the


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b Per"orate, with $re'iou authori!ation o" the initr%, one or moree&$lorator% well locate# within the contract area, to ubtitute the onenot $er"orate# in the contract u$ to the #e$th initiall% com$romie# in there$ecti'e contract +n thi cae, the contractor will ha'e to carr% out the$er"oration within the com$romie# term

+n cae one or more well that re$lace the com$romie# one en#without ha'ing reache# the minimal #e$th "oreeen in the contract "or theoriginal well, the Direction at call o" the contractor, agree to "inali!e theobligation o" #rilling the original well

+" the contractor ha not accom$lih the #rilling o$eration "or at leat "i"t%$ercent 250E o" the ti$ulate# #e$th in the contract, it will be a$$lie# the clauea o" thi article

Ar!"#$ 1&0%- CREDITS IN PERFORATION% +n cae the contractor

manage to $er"orate, within the $erio# an# com$romie# #e$th, a number o"well greater than the one nee#e# "or that $erio#, the number o" e&$lorator%well $er"orate# in e&ce will be cre#ite# at call "or the contractor to theobligation o" $er"orating e&$lorator% well that corre$on# to "uture $erio#

The ame $rinci$le will be a$$lie# in cae o" #e'elo$ment well, limitingthee cre#it to each o" the e&$loitation area =ne will not be able to cre#it$er"oration o" e&$loration to $er"oration o" #e'elo$ment or 'ice 'era

Ar!"#$ 1&1%- CREDITS IN DEPTH% 2o#i"ie# b% 6rticle o"Go'ernmental 6greement Number 1/5-005 +n cae a contractor $er"oratean e&$lorator% well u$ to a #e$th that e&cee# the minimal #e$th ti$ulate# inthe contract, the abo'e mentione# ur$lu will be able to be accumulate# an#,at the contractor reAuet, to total or $artiall% *uti"% thi #e$th to the one o"other e&$lorator% well

Ar!"#$ 1&&%- DEPTH MEASUREMENT% 2o#i"ie# b% 6rticle 8 o"Go'ernmental 6greement Number 1/5-005 or the e""ect o" thi regulationan# the #i$oition ti$ulate# in the e&$loration an#or e&$loitation contract,the #e$th o" a well will be meaure# b% ta?ing into account the #itance$er"orate# in relation to the real #irection, not necearil% in a 'ertical ene,

meaure# "rom the rotating table

Ar!"#$ 1&3%- DEVIATION DUE TO MECHANICAL PROBLEMS% 7henin the $er"oration o" an e&$lorator% well a #e'iation #ue to mechanical $roblemnee# to be #one, an% #e$th $er"orate# an# le"t below the $oint o" #e'iation willnot be ta?en in coni#eration "or the etablihment o" the #e$th o" that well

Ar!"#$ 1&4%- RECOGNI+ED DEPTH% or the e""ect o" the $re'iouarticle, the Direction will recogni!e a total #e$th o" an e&$lorator% well the$er"orate# #e$th, when:

a +t ha been alrea#% e'aluate# with the necear% recor# in or#er to#etermine i" it contain or #oe not contain h%#rocarbon(

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b 6ccor#ing to the recor# an# other in"ormation, it in#icate the $oible$reence o" economicall% e&$loitable reer'oir, an# thee ha'e beene'aluate# with the initial necear% tet( an#

c +t i "ree o" an% obtruction or ome "ihing

Ar!"#$ 1&%- REDUCTION OF THE OBLIGATION TO PERFORATE%The obligation to $er"orate two 2 e&$lorator% well "rom the "ourth %ear o"contract, "oreeen in claue e o" article // o" the Law, will be able to bere#uce# b% the initr% $ro'i#ing that the e&$loitation area that the contractorretain i not grater than:

a ight% thouan# 280,000 hectare ha'ing "inihe# the thir# %ear o"contract(

b .i&t% thouan# 2/0,000 hectare ha'ing "inihe# the "ourth %ear o"contract( or

c ort% thouan# 20,000 hectare ha'ing "inihe# the "i"th %ear o"contract

Ar!"#$ 1&%- TRANSFERENCE IN THE PERFORATION% 26bolih b%6rticle 5 o" the Go'ernmental 6greement Number 1/5-005

Ar!"#$ 1&.%- INITIAL REPORT OF EVALUATION OF DISCOVERY%7ithin the ne&t ninetie 290 #a% counte# "rom the #ate o" "iling o" the#ico'er% o" h%#rocarbon re$ort in a well, to which article 9 o" thi regulationre"er, the contractor will $reent the initial re$ort o" e'aluation o" #ico'er%,which will contain in what it i a$$licable to article 19 o" thi regulation, a wella an% other #ocumentation that on the ame arrange, in#icate i" the#ico'er% win or not cre#it to be e'aluate#, or to coni#er it to be acommercial #ico'er%

Ar!"#$ 1&8%- DISCOVERY EVALUATION% +n cae the contractor in"ormthat the #icloe# reer'oir win cre#it to be e'aluate#, in a term o" ninet% 290#a% counte# "rom the #ate o" u$enion o" the $er"oration in $ermanent "orm

o" the well, an a##itional $rogram will be ubmitte# "or the a$$ro'al o" theDirection, i" it will not ha'e been carrie# out be"ore, "or the accom$lihment o"tet o" e'aluation or $er"oration o" e'aluation well2 The abo'e mentione#a##itional $rogram will contain a $rogram o" wor? an# a bu#get o" cot,e&$ene, an# in'etment aociate# with the it, which will be in a##ition toan% another obligation that the contractor ha in con"ormit% with the contract

+n an% cae, the e&ecution o" an% e'aluation tet will be $er"orme#without $re*u#ice o" the #i$oition arrange# in article 11 o" thi regulation

Ar!"#$ 1&/%- CONTENT OF THE EVALUATION REPORT% The

e'aluation re$ort, "or e""ect o" article 3 o" thi regulation, will contain:

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a 6n i#enti"ication o" the well2, reer'oir an# geological tructure(

b 6 gra$h o" com$letion o" the well2(

c


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# Plane with in#ication o" all the "acilitie that will be inclu#e# in thee&$loitation %tem(

e The meaurement o" control o" $ollution an# a"et% that will be $ut in$ractice(

" e$ort o" $ro#uction an# $re#iction o" the beha'ior o" the reer'oir orreer'oir, "or three %ear, an# the #e$letion o" the reer'oir

g 6n etimation o" the in'etment o" #e'elo$ment, cot an# e&$ene o"o$eration, an# 'alue o" the net $ro#uction an# the re$ecti'e cah "low(

h ani"etation o" the contractor a "or hi #eciion to ue the o$tion"oreeen in article /3 o" the Law( i" he #eci#e to ue uch an o$tion, thein'etment "or the $roceing o" natural ga an#or other ubtance toe""ect o" a'oi#ing the lea?, burning, combution, or wate o" thoe

$ro#uct(

i 7hen it i the cae, a uggetion o" the agreement o" uni"ication thatare necear% "or the e&$loitation o" that $etroleum "iel#( an#

* 6 wa% o" tran$ort o" the net $ro#uction "or it mar?eting

Thi $rogram will be a$$ro'e# b% the initr% with $re'iou re$ort o" theDirection an# o$inion o" the


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Guatemala a it i the cae, in the latter cae, e&ce$t with authori!ation o" theinitr%

CHAPTER VIII

E'PLORATION AND E'PLOITATION OPERATIONS

Ar!"#$ 133 - CONTRACTOR OBLIGATIONS: +t i the contractorF obligation to$er"orm technical #e'elo$ment in all buine "iel# in a wa%, which $ro'i#e u""icientca$acit% in the h%#rocarbon e&$loitation %tem to achie'e the $ro#uction goal +naccor#ance with article 130 herein, inclu#ing ro%altie an# Go'ernment in'ol'ement inthe h%#rocarbon $ro#uction hare

Ar!"#$ 134 - MINISTERIAL AGREEMENTS: 2o#i"ie# b% 6rticle 30 o"Go'ernmental 6greement Number 1/5-005 +n or#er to guarantee the i#eal an#rational e&$loitation o" reer'oir, an# in con"ormit% with the $ractice recogni!e# b%mo#ern international $etroleum in#utr%, the initr% hall regulate the o$eration o"

e&$loration an#or e&$loitation, $articularl%:

a The location, $er"oration, com$letion, $ro#uction, u$enion an# aban#onment o"the well(

b The eAui$ment to be ue# in the acti'itie mentione# in the $re'iou claue(

c The regulation an# control in $ro#uction le'el o" h%#rocarbon or water, on eachwell or reer'e(

# The $recri$tion o" metho# to be a$$lie# "or the meaurement o"

h%#rocarbon, water an# other ubtance $ro#uce# b% the well(

e The retoration an# maintenance o" $reure an# rec%cling in theh%#rocarbon #e$oit(

" The burning or remo'al o" h%#rocarbon "rom the contract area(

g The contruction an# o$eration o" oil $i$eline, ga $i$eline an# othermean o" tran$ort in the contract area or among e&$loitation area an# thecommon %tem, when thi i the cae(

h The $re'ention o" h%#rocarbon wate(

i The #etermination o" metho# an# con#ition o" wor? in wam$%, lacutrine!one an# maritime !one(

* To a#o$t metho# to a'oi# the communication among trata containingh%#rocarbon an#or water #uring $er"oration o$eration(

? The $recri$tion o" the minimal acce$table tan#ar# $roce#ure "or the metho#,eAui$ment, an# material to be ue# in $etroleum o$eration(

l The metho# o" #i$oal, com$ilation, an# in*ection o" h%#rocarbon, water orother ubtance( an#

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m =ther metho# hall be #etermine# a necear% "or $ro$er e&$loration an#e&$loitation o$eration

+n an% cae, the 6greement to which thi article re"er mut be $reent in or#erto "ul"ill the contractorF obligation an# not to inter"ere with the "ree#om nee#e# tomanage o$eration

Ar!"#$ 13 - SPECIFIC PROHIBITIONS: 2o#i"ie# b% 6rticle 31 o"Go'ernmental 6greement Number 1/5-005 During the e&$loration an#e&$loitation o$eration i trictl% $rohibite# that the contractor:

a To wate h%#rocarbon(

b To wate or to ina#eAuatel% ue the natural energ% o" h%#rocarbon #e$oit(

c To locate, $er"orate or $ro#uce an% well that, on the bai o" technical or economic$rinci$le acce$te# b% the international $etroleum in#utr%, to get a reult a

re#uce# Auantit% o" reco'erable h%#rocarbon "rom the reer'e(

# To $er"orate an# $ro#uce well in a wa% that will caue the #etruction orwate o" h%#rocarbon or $ollution or human caualtie(

e To tore h%#rocarbon ina#eAuatel%(

" To $ro#uce h%#rocarbon e&cee#ing the o$timal $ro#uction ca$acit% ore&cee#ing the ma&imum ca$acit% o" torage or tran$ort(

g To burn, wate or to ignore an% lea? o" natural ga that can be reco'ere#

or in*ecte# economicall%, e&ce$t the "oreeen in article 08 o" thiregulation( an#

h To $ro#uce an# tore "ormation water without ta?ing the $ro$er in*ectionmeaure to neutrali!e the $ollution e""ect

During all $etroleum o$eration, contractor will be reAuire# to a$$l% uitablemetho# bae# on mo#ern technical an# economical $rinci$le a#o$te# b% theinternational $etroleum in#utr%, in or#er to achie'e the mot e""icient reco'er% o" theun#erl%ing h%#rocarbon

Ar!"#$ 13 - RESPONSIBILITY OF THE PETROLEUM SERVICESCONTRACTORS:7hen a contractor carrie out the acti'itie $ro'i#e# "or in )i)ercontract through a $etroleum er'ice contractor, the contractor will ha'e the olere$onibilit% to ma?e certain the $etroleum er'ice contractor actuall% carrie outai# acti'itie in accor#ance with article 39 o" thi Law The ame $rinci$le a$$lie to$etroleum er'ice ubcontractor, when o be the cae

TITLE IIIINSURANCE AND BONDS

CHAPTER IINSURANCE IN THE PETROLEUM OPERATIONS

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Ar!"#$ 13. INSURANCE OF THE FACILITIES: 2o#i"ie# b% 6rticle 3 o"Go'ernmental 6greement Number 1/5-005 =n the contract o" $etroleumo$eration, it i man#ator%, an# the contractor i in charge an# i hel# re$onible "orthe inurance o" the goo# an# "acilitie, that in accor#ance with the contract mut

$a on, at the en# o" the contract, to the $ro$ert% o" go'ernment The $a%ment thatthe contractor ma?e relate# to inurance $rime or bail, will be coni#er a areco'er% cot or the% will be inclu#e# with the corre$on#ing "ine, accor#ing to thecae

Ar!"#$ 138 RESPONSIBILITY IN HYDROCARBONS MANAGEMENT:

2o#i"ie# b% 6rticle 33 o" Go'ernmental 6greement Number 1/5-005 Thecontractor aume "ull liabilit% "or h%#rocarbon in )i)er "acilitie at own ri?, an# ire$onible to re$on# "or an% h%#rocarbon lo The contractor will be able to inurethe cot o" h%#rocarbon an# "acilitie +nurance cot, $remium or bon# "ee $ai# b%the contractor will be regar#e# a reco'erable cot or be inclu#e# in the re$ecti'etari"", in an% cae

CHAPTER IICOMPENSATIONS

Ar!"#$ 13/ COMPENSATION BONDS: 2o#i"ie# b% 6rticle 3 o"Go'ernmental 6greement Number 1/5-005 4e"ore the ubcri$tion o" an oilo$eration contract, an# while it remain in e""ect, the contractor will obtain, an# $reentto the initr% a bon# or guarantee "or $oible #amage, re$air an#or $re*u#icein'ol'ing the Go'ernment or in#i'i#ual, an# their re$ecti'e goo#, inclu#ing the#eri'ati'e o" $ollution The initr% will re'iew the bon# or guarantee annuall%

7hen a reult o" a thir# $art% claim, an% $a%ment ma#e to co'er #amagean#or $re*u#ice will #e#uct "rom the #e$oite# bon# to co'er com$enation, incon"ormit% with the contract 6n# i" the bon# "un# i re#uce#, the contractor an#or$etroleum er'ice contractor, in an% cae, will obtain a##itional bon# or e&ten#e&iting one a oon a $oible while the contract remain in e""ect in or#er tomaintain the original amount reAuire#

CHAPTER IIIAPPROVAL AND REVIEW OF BONDS AND2OR INSURENCES

Ar!"#$ 140 - APPROVAL AND REVIEW: 2o#i"ie# b% 6rticle 35 o"Go'ernmental 6greement Number 1/5-005 The initr% will a$$ro'e an#or willannuall% re'iew the amount o" bon# an# inurance the contractor an#or the$etroleum er'ice contractor $ro'i#e to com$l% with the Law an# the contract, a it ithe cae

Ar!"#$ 141 - INSUFFICIENT AMOUNT: 2o#i"ie# b% 6rticle 3/ o"Go'ernmental 6greement Number 1/5-005 The $reentation o" a bon# orinurance #oe not e&em$t the contractor( the contractor o" $etroleum er'ice , or a$ermiion hol#er, ha'e the obligation to com$enate in "ull "or #amage an#or$re*u#ice, that might be caue# e'en when the amount i not u""icient to co'er thecom$enation $a%ment the cae im$lie

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CHAPTER IVPRECAUTIONARY MEASURES

Ar!"#$ 14& - NOTIFICATION MEASURES: Due to the characteri!e# utilit% an#$ublic nee# o" oil o$eration, i" an% Go'ernment aet, right or interet concerning$etroleum o$eration coul# be a""ecte# b% $recautionar% meaure, e&ecution or*u#icial $rocee, the contractor mut noti"% the initr% imme#iatel% an# $ro'i#e allin"ormation to allow the Go'ernment $re$are a #e"ene cae an# ta?e corre$on#ingaction 6n% omiion or carelene "rom the contractor in thi regar# will contitutee&treme gra'it%

TITLE IVNATURAL GAS AND2OR OTHER SUBSTANCES

CHAPTER I

UTILI+ATION AND DELIVERY

Ar!"#$ 143 - NATURAL GAS: 2o#i"ie# b%

Hydrocarbons Law Guatemala

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