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REGULATIONS FOR EXPLORATION & PRODUCTION ACTIVITIES

NATIONAL OFFICE OF MINERAL RESOURCES (ONRM). REGULATIONS FOR EXPLORATION & PRODUCTION ACTIVITIES. REGULATORY FRAMEWORK. GOVERNMENT. MINBAS. MINISTRIES. ONRM. CUPET. FOREIGN COMPANIES. REGULATORY FRAMEWORK. Legislation Regulations Rules Procedures and Guidelines.

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REGULATIONS FOR EXPLORATION & PRODUCTION ACTIVITIES

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  1. NATIONAL OFFICE OF MINERAL RESOURCES (ONRM) REGULATIONS FOR EXPLORATION & PRODUCTION ACTIVITIES

  2. REGULATORY FRAMEWORK GOVERNMENT MINBAS MINISTRIES ONRM CUPET FOREIGN COMPANIES

  3. REGULATORY FRAMEWORK Legislation Regulations Rules Procedures and Guidelines

  4. REGULATORY FRAMEWORK • ACCORDING TO THE CONSTITUTION OF THE REPUBLIC OF CUBA , ALL MINERAL RESOURCES LOCATED ON THE SURFACE AND UNDERGROUND OF THE TERRITORY OF CUBA ARE STATE PROPERTY OF THE CUBAN PEOPLE AND ALSO ALL NATURAL RESOURCES • LOCATED IN THE SEA AND BELOW THE SEABOTTON OF THE CUBAN EXCLUSIVE ECONIMIC ZONE • .

  5. REGULATORY FRAMEWORK LAW FOR FOREIGN INVESTMENT MAIN LEGAL DOCUMENT FOR PETROLEUM CONTRACTS, THAT ESTABLISHES THE COMMERCIAL, FISCAL AND LABOR RULES FOR JOINT VENTURES IN CUBA

  6. REGULATORY FRAMEWORK • LAW OF THE SEA AND INTERNATIONAL MARINE AGREEMENTS • AGREEMENTS WITH U.S. AND MEXICO ON DELIMITATION OF MARINE BOUNDARIES • CUBAN MODEL OF PRODUCTION SHARING AGREEMENT

  7. NATIONAL OFFICE OF MINERAL RESOURCES(ONRM) ONRM IS THE MINING AND PETROLEUM AUTHORITY OF THE REPUBLIC OF CUBA CREATED IN 1995 BY THE LAW NO. 76 (MINING LAW): REGULATION ,SUPERVISION AND CONTROL OF OIL AND MINING ACTIVITIES, INCLUDING UTILIZATION AND RATIONAL EXPLOITATION OF OIL AND MINERAL RESOURCES

  8. TECHNICAL AND ENVIROMENTAL REGULATIONS • PROCEDURE FOR LEGAL, TECHNICAL AND FINANCIAL QUALIFICATION OF FOREIGN COMPANIES • PERMIT FOR SPUDDING OIL WELLS • PROCEDURE FOR SUPPLYING GEOLOGIC AND OIL TECHNICAL DATA • RULES AND PROCEDURE FOR EXPLORATION ACTIVITIES

  9. TECHNICAL AND ENVIROMENTAL REGULATIONS (2) • RULES AND PROCEDURES FOR EXPLOITATION ACTIVITIES • RULES FOR SHUT DOWN OIL WELLS AND FOR ABANDON OIL WELLS • RULES FOR ONLAND AND OFFSHORE ENVIROMENTAL PROTECTION

  10. QUALIFICATION OF FOREIGN COMPANIES • ALL FOREIGN OIL COMPANIES ARE OBLIGED TO OBTAIN FROM ONRM THE APPROVAL OF LEGAL , TECHNICAL AND FINANCIAL QUALIFICATION BEFORE START NEGOCIATIONS WITH CUPET REGARDING PETROLEUM CONTRACTS (PSC)

  11. PERMIT FOR DRILLING OIL WELLS • BEFORE STARTING DRILLING ANY KIND OF OIL WELL , ONRM HAS TO VERIFY THAT THE OPERATOR HAS ALL LICENCES AND PERMISSIONS ESTABLISHED BY OFFICIAL REGULATIONS • ONRM IS THE STATE ENTITY WHICH AUTHORIZES THE ISSUE OF THIS PERMIT

  12. GEOLOGICAL AND PETROLEUM INFORMATION • ALL OIL CUBAN AND FOREIGN COMPANIES ARE COMMITTED TO GIVE TO ONRM ALL GEOLOGICAL AND TECHNICAL OIL DATA OBTAINED DURING E&P ACTIVITIES • ONRM ENSSURES THE CONFIDENTIALITY OF THIS INFORMATION

  13. STAGES OF EXPLORATION&PRODUCTION ACTIVITIES EXPLORATION PERIOD 1.PREPARATION OF PROSPECTS AND DRILLNG OF EXPLORATORY WELLS. DISCOVERY OF FIELD 2.EVALUATION PHASE. DECLARATION OF COMMERCIALITY EXPLOITATION PERIOD 3. DEVELOPMENT PHASE. DRILLING AND CONSTRUCTION OF SURFACE FACILITIES 4. EXPLOITATION PHASE

  14. DECLARATION OF COMMERCIALITY • IF AT THE END OF THE EVALUATION PHASE OF THE EXPLORATION PERIOD THE OPERATOR CONSIDERS THAT THE EXPLOITATION OF THE DISCOVERED FIELD WILL BE PROFITABLE ,IT HAS TO SUBMMIT TO ONRM THE DECLARATION OF COMMERCIALILY IN ORDER TO GET ITS APPROVAL • BEFORE THE BEGINNING OF THE EXPLOITATION PERIOD, THE OPERATOR HAS TO SUBMMIT TO ONRM THE DEVELOPMENT PLAN FOR ITS APPROVAL

  15. ENVIROMENT PROTECTION DURING PETROLEUM OPERATIONS LAW No 81 OF THE ENVIRONMENT ESTABLISHES ALL REGULATIONS TO PROTECT ONLAND AND OFFSHORE ENVIRONMENT AND THE OPERATIONAL SAFETY

  16. REGLAMENT FOR ENVIROMENTAL PROTECTION DURING E&P ACTIVITIES • THIS REGLAMENT ESTABLISHES THE RULES , IN ORDER TO GUARANTEE THE DEVELOPMENT OF EXPLORATION AND PRODUCTION ACTIVITIES FOR OIL AND NATURAL GAS , UNDER CONDITIONS OF SAFETY AND MINIMUM INFLUENCE (POLLUTION) ON THE ENVIROMENT

  17. ENVIROMENT PROTECTION DURING OIL OPERATIONS THE CUBAN AND FOREIGN OPERATORS ARE RESPONSIBLE FOR ALL EMISSIONS AND DISPOSAL MATERIALS DURING PETROLEUM OPERATIONS IN ONLAND AND OFFSHORE ACTIVITIES

  18. CONCLUSIONS • IN CUBA THERE EXISTS AN AUTHORITY FOR REGULATION AND CONTROL OF E&P ACTIVITIES : THE ONRM. • THE EXISTENCE OF A CUBAN REGULATORY FRAMEWORK FOR E&P ACTIVITIES ENSSURES TO THE CUBAN STATE AND FOREIGN COMPANIES THE TECHNICAL FOUNDATION FOR RATIONAL EXPLOITATION OF PETROLEUM RESOURCES • THE GOVERNMENT OF CUBA REQUIRES FROM CUBAN AND FOREIGN COMPANIES TO TAKE ALL NECESSARY MEASURES TO GUARANTEE THE DEVELOPMENT OF E&P ACTIVITIES WITHOUT ANY BAD INFLUENCE TO THE ONLAND AND MARINE ENVIROMNET

  19. NATIONAL OFFICE OF MINERAL RESOURCES (ONRM) ACCORDING TO THE LAW, ALL FOREIGN COMPANIES WORKING IN E&P ACTIVITIES IN CUBA, ONLAND AND OFFSHORE, ARE OBLIGED TO FULFILL THE REGULATIONS ISSUED BY ONRM. WITHIN THE LAST TEN YEARS ALL DISPUTES WITH FOREGIN COMPANIES HAVE BEEN SOLVED PROMPTLY AND FRIENDLY

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