The Ministry of Energy and Mines (MEM) reported that it awarded the first auction to develop the hydrocarbon industry to Apache Dominican Republic Corporation, a subsidiary of the US-based Apache Corporation. Apache Dominicana is authorized to carry out exploration and exploitation for oil and gas in an offshore block in the San Pedro de Macorís basin. The particular contract needs to go to the National Congress for approval.
The Minister of Energy and Mines, Antonio Isa Conde, examined the favorable expert report with the assistance of geologist Osiris de León, advisor to the Executive Branch on Geosciences.
The shared production contract guarantees minimum participation of 40% of the attributable benefits throughout the life of the project, i.e. Total Oil Revenue (TOR).
Apache Corporation is an oil and gas exploration and production company with operations in the United States, Egypt and the United Kingdom, which in the third quarter of 2019 reported a daily production of 451,000 barrels of oil equivalent (BOE).
“We congratulate the winning company, Apache Dominican Republic Corporation, for its decision to participate in the first hydrocarbon block auction in the Dominican Republic, a sign of confidence in the country and its investment climate. We welcome them on behalf of the Dominican Government and wish them success, as their success is that of the country and the nascent hydrocarbon industry,” declared Minister Isa Conde.
The official said that as long as there are areas available with potential for exploration and exploitation of hydrocarbons and interested investors, they will continue to hold auctions under the same terms, rules and conditions followed until today.
The Dominican Republic’s first oil round opened on 10 July in Houston, Texas. The 14 blocks on offer across four basins both onshore and offshore are Cibao Basin (6 onshore blocks), Enriquillo Basin (3 onshore blocks), Azua Basin (1 onshore block) and San Pedro Basin (4 offshore blocks).
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Listin Diario
Map Stand
28 November 2019