Terms of Reference
General Terms

Inherent Activities:

Inherent Activities are understood as those pertaining to oil   gas exploration and production, geology, geophysics, geochemistry, drilling of oil & gas wells, petroleum engineering, administration, operation and maintenance of oilfields, equipment inspection, pipes and other elements used for oil & gas drilling and production.

ANH:

It is the National Hydrocarbons Agency, a Special Administrative Unit that reports to the Ministry of Mines and Energy.

Colombia´s Round Special Areas:

These are the blocks comprised within the areas defined as “SPECIAL AREAS” by way of Agreements No 24 of June 30, 2005, No 46 of November 29, 2006 and No 01 of January 29, 2008 and Resolution 41 of January 31, 2008, issued by ANH.

Company:

It comprises all legal persons, including Consortiums or Temporary Associations’ members whose social object comprises the Inherent Activities.

Participating Company:

It is the company which has expressed in writing to ANH its wish to participate in the Process and that has acquired the Information Package.

Qualified Company:

It is the Participating Company which has submitted the information or documents required for legal qualification and which, following the qualification analysis carried out by ANH, is considered qualified to submit a bid. It is understood that a Qualified Company does fulfill the legal capacity qualification set forth in these terms of reference. Qualified Companies may only associate themselves with Qualified Operators in Consortiums or Temporary Associations as defined below, in order to submit offers. Each Qualified Company may only submit one offer for each block, as a Consortium or Temporary Association member.

Awarded Company:

This is the Qualified Company whose bid has been awarded.

Qualified Operator:

This is the Qualified Company which also fulfills the operational and financial capacity qualification stipulated in these terms of reference. Each Qualified Operator may only submit one bid for each block, either individually or as a member of a Consortium or Temporary Association.

Consortium:

It is understood that there is a Consortium when two or more Companies submit jointly the same bid for awarding, signing and executing the E&P contract, being severally and jointly liable for all and each one of the obligations derived from the bid and the E&P contract. Consequently, acts, facts, omissions and non fulfillments that occur during the development of the bid and the E&P Contract shall affect all companies that constitute said consortium.

E P Contract:

It is any oil & gas exploration and production contract signed between ANH and Awarded Companies.

Schedule:

This is Table 1 that specifies dates on which or during which the Process takes place.

Participation Right:

This is the right that a company, which has acquired the information package, has to submit documents necessary to be qualified, prior written statement of its intention to participate in the process.

Round’s Website:

www.rondacolombia2010.com

Information Package:

This is the set of data, coordinates, figures and, in general, information regarding seismic, wells and technical reports on the area of the Project, which ANH shall deliver to the Company that expresses in writing its interest to participate in the process and pays the amount of one hundred thousand American dollars (USD$100.000), plus VAT, or its equivalent in Colombian Pesos, calculated at the Government Approved Market Rate (TRM) published by Banco de la República valid the date prior to the day in which payment is made.

A and B Polygons:

Areas defined in Article 4 of Agreement No. 008 of 2004 issued by ANH.

Production Participation:

It means the percentage of net production that Bidders offer to ANH as a compensation for awarding them an E&P Contract.

Colombia 2010 Process or Round:

This is the request for bids process to contract Colombia Round’s Special Areas.

Bidder:

It is any Qualified Operator or Consortium or Temporary Association whose members are qualified (one of them as Qualified Operator Company) and which submit a bid.

Terms of Reference or TDR:

It is this document which contains the regulations, requirements and information necessary to participate in the Bidding Process.

Temporary Association:

This is the association of two or more Companies which jointly submit the same bid for award, signature and execution of the E&P Contract, being severally and jointly liable for the total fulfillment of the bid and the E&P Contract, but fines due to non-fulfillment of obligations derived from the bid and the E&P Contract shall be imposed in accordance with the participation in the execution of each one of the Companies that constitute the Temporary Association.

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