Briefly
The Minister of Energy has introduced amendments to the Order on approval of model subsoil use contracts (the “Amendments”). The Amendments have introduced significant modifications to the existing framework of model subsoil use contracts.
In details
The Amendments have been applied to the model contracts governing various activities within the subsoil sector. These contracts encompass:
- exploration and production of hydrocarbons;
- production of hydrocarbons;
- uranium extraction operations;
- exploration and production of hydrocarbons within the scope of complex projects;
- production of hydrocarbons pertaining to complex projects.
A notable stipulation of the Amendments is the imposition of an investment obligation on subsoil users who are engaged in the extraction of hydrocarbons from fields that are nearing depletion. This obligation also requires additional financial contributions towards the socio-economic development of the respective regional areas.
Furthermore, the Amendments stipulate several critical aspects, including:
- accountability measures for subsoil users who fail to meet or improperly execute their contractual obligations;
- modifications to the rights afforded to subsoil users;
- mandatory conditions to be adhered to by subsoil users seeking an extension of the exploration term.
Are you interested in this topic?
- We would be pleased to discuss with you the above amendments and how they can impact your business.
- We can analyze and implement possible steps to ensure compliance with the new requirements.
If you are interested in additional information, please contact PwC specialists working as part of a group serving your company, or to any of the persons listed.
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