Petroleum Licensing and Contracting

13. Prioritisation and timing of awards

The host state should also evaluate how fast the extractives sector should be explored and exploited by deciding on the timing for awarding new areas.

The overall objectives of the host state are:

1. Gaining information at a reasonable pace on the petroleum potential and resources of the national territory by organizing sequential licensing rounds.

2. Petroleum profit maximisation, by seeking out the best options for the state, negotiating favourable terms and conditions for extracting non-renewable resources and encouraging local and foreign participation, while taking into account the infrastructure constraints, or social and environmental risks of extraction. A further consideration is the availability of geological data. This is a key factor in determining appropriate award procedures.