Offshore staff
SANTIAGO, Chile -- The Chilean government has launched an international campaign to invite private companies to invest in exploration and production in Chile. International and local companies interested in developing E&P projects in the country will sign a special operating contract (CEOP) with the Chilean government.
The CEOP, the government says, is a special operating contract the state of Chile, represented by its Mining Ministry, will sign with a company or consortium of companies for the exploration and exploitation of hydrocarbons.
These contracts, which may be awarded through direct negotiation or as a result of a public tender, establish the corresponding conditions, stages, and investments the contractor will undertake during the exploration phase of the process. The contracts also define the system and mechanisms through which the state will compensate the contractor during the production phase of the program, either in the form of hydrocarbons or through direct payment.
The CEOPs have a maximum duration of 35 years for the exploration and production phases.
Since the beginning of this year, two companies, Layne Energy and March Resources, have negotiated and signed CEOPs with Chile, and US-based GeoPark Holdings Ltd. is producing natural gas in the Magallanes basin under a CEOP signed in 2005.
5/31/2007
