Glossary of CNH Model Contract for Round 1.2

Transcription

1 Glossary of CNH Model Contract for MEI Market Note No. 210 Houston, September 24, 2015 Most of the technical vocabulary is carried over from Round 1.1 M OST OF THE TECHNICAL VOCABULARY from the model contract that served as the basis for the first public auction that was held by the Hydrocarbon Commission (CNH) on July 15, 2015, was carried over to the final model contract, dated August 25, 2015, to be used in the second auction scheduled for September 25 (see insert). From our database of more than 1,700 terms, we identified some three dozen terms or definitions that are new to the August 25 th version of the contract. Roughly 120 terms and definitions are common to both auctions. These terms are sorted by the respective auction and then alphabetically, and we have provided provisional English translations for each term (Table 1).. Looking into the substantive matters of the model contract, we continue to find problematic issues: 1) The contract should state categorically that the nuclear option of administrative rescission will not be applied in response to a single event (noting that BP did not lose its license on account of the Macondo accident). 2) At variance with the statement of Energy Minister Coldwell at an industry conference held in Mexico City on August 18 th, which was that operators will have the complete geological column included in their contracts, there are vertical restrictions in three of the blocks: Tecoalli B, Hokchi B and Nak. The presence of such limits will make qualified bidders hesitate to make offers. 3) The contract specifies that no property rights are conveyed by the contract (Art. 21.4). The contract does provide the contractor with the right to compensation for specified expenses and a share of the proceeds from production. Such benefits may be understood to be property rights in relation to mineral contracts. In Round 1.1, such rights belong to the Mexican State, but in (as if to clarify matters) they belong to the Mexican Nation. 4) Operators should be given freedom to report their discoveries in Mexico in physical units. 5) In Round 1.1, the government was embarrassed by the outcome that resulted from the absence of the provision for a technical tie (as happened with Block 7, where the difference between the bids was less than 1%). The definitions applicable to do not include this provision. George Baker Publisher [email protected] MEXICO ENERGY INTELLIGENCE ISSN Page 1 of 8

2 Ronda 1 2nd Convocatoria - Bases de la licitación CNH-R01-L02/2015 (Consorcio) Abandono () Abandonment Arbitraje Arbitration Costos Elegibles Eligible costs Costos Recuperables Recoverable costs Daños Preexistentes Preexisting environmental damage Derecho de Terminación Right of termination Etapa de Transición de Arranque Transitional start-up stage Etapa de Transición Final Final transition stage Evaluación de Impacto Social Social Impact Study Experto Independiente Independent expert Interés de Participación [Ronda 1.2] Participating interest (%) Límite de Recuperación de Costos [Ronda 1.2] limit of cost recovery Materiales Muebles Matériel (as distinct from real estate) Annex 10 Modelo de Garantía de Cumplimiento Model of a performance guarantee No Otorgamiento de Derechos de Propiedad [Ronda 1.2] Non-conveyance of property rights No Suspensión de Actividades Petroleras Non-suspension of oilfield operations Período Inicial de Evaluación [Ronda 1.2] Initial evaluation period Presupuesto Budget , Annex 4 Procedimientos de Contabilidad Accounting procedures Procura de Bienes y Servicios Procurement of goods and services Prórroga del Plazo del Contrato Extension of the contract period Prórroga del Programa de Trabajo Extention for period of Work Program Reglamento CNUDMI UN regulation for the resolution of international commercial disputes , 25.2, Rescisión administrativa [Ronda 1.2] Administrative rescission Subproductos By-products, co-products [email protected] 1

3 Totalidad del Contrato Totality of the Contract Annex 13 Uso Compartido de Infraestructura Shared use of infrastructure BASES DE LA LICITACIÓN CNH-R01-L03/ Abandono Abandonment Actividades Petroleras Life-cycle oil field actvities Agencia Agencia for Industrial Safety and Environmental Protection (ASEA) Almacenamiento Storage Año Year Año Contractual Contractual year Anti-corrupción Anti-corruption standard Aportación Anual Annual contribution , 2.2 Área Contractual Contractual Area Autoridad Gubernamental Government agency Barril Barril Bases de Licitación Auction documentation Cambio de Operador Change of operatorship Campo Field Caso Fortuito o Fuerza Mayor Force majeure Cesión Change of rights, obligations or ownership Conciliación Dispute resolution Condensados Condensates Contraprestación Payment (in cash or in kind) Contraprestación del Contratista Payment in kind to Contractor Contraprestación del Estado Cash payments to the State Contratista Contractor Contrato Contract [email protected] 2

4 Control Control Convocatoria Auction Costos Costs Cuenta Operativa Operating account Cuota Contractual para la Fase Exploratoria Fee payable during exploratory phase Derechos de Propiedad Property rights Descubrimiento Discovery , 6.1 Devolución Relinquishment Día Calendar day Día Hábil Working day Documentos Técnicos Technical documentation Dólares U.S. dollars Empresas Participantes Participating companies Evaluación Evaluation Extracción Production life-cycle of an oil well Fecha Efectiva Effective date of contract Fideicomiso de Abandono Escrow account for abandonment Filial Affiliate Fondo Oil Fund Garante Guarantee of corporate parent Garantía Corporativa Corporate guarantee Garantía de Cumplimiento Performance guarantee Garantía de Cumplimiento Inicial Guarantee of initial performance Garantía del Período Adicional Guarantee for additional period Gas Licuado de Petróleo LPG Gas Natural Natural gas Gas Natural Asociado Associated natural gas Gas Natural No Asociado Non-associated natural gas 3

5 Hidrocarburos Petroleum, natural gas, natural gas liquids and methane hidrates Hidrocarburos de Autoconsumo Hydrocarbons for self-use Hidrocarburos en el Subsuelo Hydrocarbons in the subsurface Hidrocarburos Netos Net (hydrocarbon) production Hidrocarburos Producidos Total hydrocarbons produced Idioma Contract language Incremento en el Programa Mínimo Increase in the minimum work commitment Incumplimiento del Programa Mínimo de Trabajo Non-compliance with Minimum Work Program Información pública Public information Información Técnica Technical information Instalaciones Facilities; infrastructure; installations Instalaciones de Comercialización Midstream infrastructure Instalaciones de Recolección Gathering lines (and related infrastructure) , 24 Interés de participación (%) [Ronda 1.1] Equity interest of participant (%) Inventario de Activos Inventory of materials Ley de Hidrocarburos Hydrocarbon Act of Materiales Matériel Mecanismo de Ajuste R Factor Mejores Prácticas de la Industria Best practices Mes Calendar month Metodología Methodology for measuring national content Modalidad Licencia License agreement , 5.4 Modificaciones al Plan de Desarrollo por Parte de la CNH CNH right to modify contractor development plan , 2.1, 4.1, Normatividad Aplicable Applicable legal dispositions 8, 9.2, [email protected] 4

6 Notificación de Continuación de Actividades Notification of continuation of activities Obligaciones de Carácter Fiscal Fiscal obligations Obstáculos a la Continuación de la Perforación Obstacles to the continuation of drilling , 2.5 Operador Operator Partes Parties [to a contract] Perforación de Pozos Well plan authorization Período Period of a month Período Adicional de Evaluación Additional period for appraisal Período de Desarrollo Development Period Período de Evaluación Evaluation period Período Inicial de Evaluación Initial Evaluation Period Persona Person (physical or corporate) Petróleo Crude oil Petrolíferos Refined products Petroquímicos Basic Petrochemicals (understood in Mexico as natural gas liquids) Plan de Desarrollo Development Plan Plan de Evaluación Evaluation Plan , Anex 5 Plan de Transición de Arranque Start-up Plan Plan de Transición por Terminación Contract Termination Plan Plazo Contract Period Pozo Well Precio Contractual Contract Price Primer Plazo Adicional 1st Additional Period Procedimientos de Contabilidad Accounting procedures Procesamiento de Gas Natural Natural gas processing Producción Comercial Regular Regular commercial production Programa de Administración de Riesgos Risk management program [email protected] 5

7 Programa de Trabajo [Ronda 1.2] Work program Programa Mínimo de Trabajo [Ronda 1.1] Minimal Work Program , 28.2 Propiedad intelectual del Contratista Intellectual property of contractor Propuesta Winning offer Prórroga Extension of contract period Pruebas de Formación Test well notification Puntos de Medición Measuring points Recolección Gathering Reconocimiento y Exploración Superficial Surface exploration Recuperación Avanzada Enhanced OIl Recovery Regalía Royalty Reglas de Mercado Market competition , 17 Renuncia del Contratista Voluntary termination of contract Annex 4, XI Reportes Reports (electronic filing) Rescisión Administrativa Administrative rescession Rescisión Contractual Contractual rescession Reservas Reserves Responsabilidad Solidaria Joint and several responsibility Secretaría de Hacienda Finance Ministry (SHCP) Segundo Plazo Adicional 2nd additional period Singular y Plural Singular or plural construction Sistema de Administración System of administration (of ASEA) Subcontratistas Subcontractors Trimestre Quarter year (3 months) Unidad de Trabajo Work Unit Unidades de Trabajo Work units Unificación Unitization (of contract areas) Valor Contractual de los Condensados Contract value of condensates [email protected] 6

8 Valor Contractual de los Hidrocarburos Contract value of hydrocarbons Valor Contractual del Gas Natural Contract value of natural gas Valor Contractual del Petróleo Contract value of crude oil Annex 4, 3.1 Verificación Verification (by Finance Ministry) Volúmenes de Hidrocarburos Producidos Contractor volumes 7

9 BAKER & ASSOCIATES,ENERGY CONSULTANTS Management consulting Industry, policy and regulatory reports A management briefing is available on the topics covered in this report. (832) (text/cell) Mailing Address: Box Houston TX To learn about our reporting, consult the title lists, by year or category, on or write to us at [email protected]