Contract/License Periods
The term of a license agreement or contract may be 20-30 years with the right to negotiate an extension thereafter. It is normally divided into the initial Exploration Period, and if success is achieved, it is followed by the Exploitation Period, during which the field is developed and production takes place. A Reconnaissance Period may be allowed by Operators in advance of negotiating or bidding on one or more blocks. The Exploitation Period is usually divided into a Development Period, during which the field is planned and constructed, followed by the Production Period.
