SELECTION OF OIL COMPANIES FOR THE EXPLORATION AND EXPLOITATION OF HYDROCARBONS IN OFFSHORE BASINS OF REPÚBLICA ORIENTAL DEL URUGUAY (URUGUAY ROUND 3) BIDDING ROUND TERMS Page 1 of 174 TABLE OF CONTENTS SELECTION OF OIL COMPANIES FOR THE EXPLORATION AND EXPLOITATION OF HYDROCARBONS IN OFFSHORE BASINS OF REPÚBLICA ORIENTAL DEL URUGUAY (URUGUAY ROUND 3) BIDDING ROUND TERMS ............................................................................................................................ 1 TABLE OF CONTENTS ................................................................................................................................ 2 1. OBJECT ............................................................................................................................................. 5 2. SCHEDULE ........................................................................................................................................ 5 3. AREAS AVAILABLE FOR THE SELECTION PROCESS ........................................................................... 5 4. MODEL CONTRACT .......................................................................................................................... 5 5. GENERAL REQUIREMENTS FOR THE SELECTION PROCESS .............................................................. 5 6. PURCHASE OF BIDDING ROUND TERMS .......................................................................................... 7 7. BIDDER QUALIFICATION CRITERIA ................................................................................................... 7 8. QUERIES AND CLARIFICATIONS ..................................................................................................... 13 9. REQUIREMENTS FOR PROPOSAL SUBMISSION ............................................................................. 13 10. MINIMUM TERM OF VALIDITY OF PROPOSALS......................................................................... 13 11. BID/S SUBMISSION AND OPENING ........................................................................................... 13 12. TECHNICAL INFORMATION ABOUT THE AREAS ........................................................................ 14 13. EVALUATION OF PROPOSALS .................................................................................................... 14 14. PERFORMANCE BOND............................................................................................................... 21 15. AUTHORIZATION FROM THE EXECUTIVE BRANCH .................................................................... 21 16. CONTRACT EXECUTION ............................................................................................................. 21 ANNEX A ..................................................................................................................................................... 22 TYPE I AREAS .......................................................................................................................................... 23 TYPE II AREAS ......................................................................................................................................... 28 TYPE III AREAS ........................................................................................................................................ 36 ANNEX B ..................................................................................................................................................... 40 ANNEX C ..................................................................................................................................................... 41 ANNEX D ..................................................................................................................................................... 42 ANNEX E...................................................................................................................................................... 43 ANNEX F ...................................................................................................................................................... 44 ANNEX G ..................................................................................................................................................... 45 ANNEX H ..................................................................................................................................................... 47 ANNEX I ...................................................................................................................................................... 48 ANNEX J ...................................................................................................................................................... 49 ANNEX K ..................................................................................................................................................... 53 ANNEX L ...................................................................................................................................................... 60 ANNEX M .................................................................................................................................................... 68 Page 2 of 174 ANNEX N ..................................................................................................................................................... 83 ANNEX O: MODEL CONTRACT FOR ALLOCATION OF AREAS FOR EXPLORATION AND EXPLOITATION OF HYDROCARBONS IN OFFSHORE BASINS OF REPÚBLICA ORIENTAL DEL URUGUAY .................................... 84 SECTION I ............................................................................................................................................... 84 CLAUSE 1 - PREFACE ............................................................................................................................... 84 CLAUSE 2 - DEFINITIONS AND INTERPRETATIONS ................................................................................. 84 CLAUSE 3 - OBJECT ................................................................................................................................. 93 CLAUSE 4 - TYPE OF CONTRACT ............................................................................................................. 93 CLAUSE 5 - TERM .................................................................................................................................... 93 SECTION II .............................................................................................................................................. 94 CLAUSE 6 - RIGHTS AND OBLIGATIONS OF THE CONTRACTOR .............................................................. 94 CLAUSE 7 – LOCAL CONTENT ................................................................................................................. 98 CLAUSE 8 - RIGHTS AND OBLIGATIONS OF ANCAP ................................................................................ 99 SECTION III ........................................................................................................................................... 100 CLAUSE 9 - EXPLORATION PERIOD ....................................................................................................... 100 CLAUSE 10 - EXPLOITATION PERIOD .................................................................................................... 105 CLAUSE 11 – ABANDONNMENT ........................................................................................................... 111 CLAUSE 12 - TRANSFER OF PROPERTY ................................................................................................. 112 SECTION IV ........................................................................................................................................... 113 CLAUSE 13 - OIL AND NATURAL GAS LIQUIDS ...................................................................................... 113 CLAUSE 14 - NATURAL GAS .................................................................................................................. 114 CLAUSE 15 - ANCAP’S PREFERENTIAL RIGHT ........................................................................................ 115 CLAUSE 16 - HYDROCARBONS COMMERCIALIZATION ......................................................................... 116 SECTION V ............................................................................................................................................ 116 CLAUSE 17 - ITEMS RECOVERED BY THE CONTRACTOR ....................................................................... 116 SECTION VI ........................................................................................................................................... 121 CLAUSE 18 - ASSOCIATION ................................................................................................................... 121 CLAUSE 19 - DELIVERY OF TECHNICAL INFORMATION......................................................................... 122 CLAUSE 20 - MANAGEMENT COMMITTEE ........................................................................................... 124 CLAUSE 21 - UNFORESEEABLE CIRCUMSTANCES BEYOND THE CONTROL OF THE PARTIES ................ 125 CLAUSE 22 - ENVIRONMENT PROTECTION .......................................................................................... 126 CLAUSE 23 - CONFIDENTIALITY ...........................................................................................................