Application Procedures

Conditions for Participation

The Application Procedures have been defined in accordance with the Decree of Application of the Law 2019-03 of January 29  2019 which is available on the Ministry of Petroleum and Energy and/or PETROSEN web sites. (http://www.energie.gouv.sn/.  All documents will also be available below.

Companies that wish to participate in the bid round must send a letter of interest to the Minister of Petroleum and Energy, with a copy to PETROSEN.

The Promotion Committee will record their interest in the 2020 Senegal Licensing Round Register.  The Bid Package is sold at the non-refundable price of US$15,000 per package. The Bid Package will include:

  • Non-Disclosure Agreement to be signed by PETROSEN and the interested party
  • A list of available seismic data in each block together with access conditions  
  • A list of existing reports and well reports, together with access conditions
  • The legal framework in connection with the bid round as stated below:

* The Petroleum Code – Law 2019-03

* The Decree of Application of the Law

* Petroleum Operations Regulations

* Model of Production Sharing Contract

* Model of Joint Operating Agreement

* Tax Regulations

The Bid Package will be available after the opening of the Licensing Round on January 31st 2020. Only companies that have already bought the Bid Package will be invited to attend a data room by PETROSEN, in Senegal.

Applications

Companies that satisfy the technical and financial capabilities required, will be able to apply for more than one block.  Each application must consist of only one submission and should contain the following information, a summary of the key terms of the Decree of Application and Model PSC:

  1. Name of the Company or Group of Companies: The full name of the company or group of companies applying for an Exploration and Production licence
  2. Juridical Form of the company or Group of Companies: the nature of its business and the place of incorporation
  3. Up to date Certificate of Incorporation
  4. Addresses: Address of the head office and the main places of business
  5. Legal status of the Company
  6. Names of Managing Directors: Name and qualifications of the members of the board, specifically managing directors. Authorised agents and legal documents proving their authority to engage on behalf of the Company
  7. Board of directors List with information, duly certified
  8. Annual Financial Statement: evidence of the financial qualifications of the Company or Group of Companies, including copies of the audited accounts of each company for the last three (3) financial years
  9. Technical Qualifications: Evidence of previous or existing oil and gas activity
  10. List of shareholders: list of the ten (10) main shareholders or shareholders who own more than 50% of the capital
  11. General and Special Auditors: Names and addresses of the auditors for the Company or Group of Companies
  12. Name of the Block:

Surface: …….km2

Coordinates

 

 

  1. Duration of the Exploration Licence:
    • First Period – maximum duration of four (4) years, with minimum work programme and financial commitments
    • Second Period – maximum duration of three (3) years, with minimum work programme and financial commitments
    •  Third Period – maximum duration of three (3) years, with minimum work programme and financial commitments
  1. Surface Rental:
    • First Period – An annual fee of US$30 per square kilometre per year
    • Second Period – An annual fee of US$50 per square kilometre per year
    • Third Period – An annual fee of US$75 per square kilometre per year
  1. Relinquishment: Percentages of the exploration permit area to be relinquished at the end of the First and Second Periods.
  2. Training Fees: An annual provision for training of a Senegalese agent. This provision will be during both the Exploration and the Exploitation phases
  3. Promotion Fees: An annual provision to support PETROSEN during the Exploration phase
  4. Duration of the Exploitation Licence: The duration of an exploitation licence is twenty-five (25) years. It can then be renewed for a period of ten (10) years
  5. Cost Recovery: The cost recovery is defined based on the geographical location of the block:
    • Shallow Offshore:       60%
    • Deep Offshore:            65%
    • Ultra-Deep Offshore: 70%
    • Onshore:                       55%
  1. Royalties:

 

  1. Profit Sharing: The State share will not be less than 40%.  Profit sharing is determined by the R Factor as:

                                        Cumulative Revenues                                            

                R Factor =   --------------------------

                                    Cumulative Investments

 

 

  1. State Participation (PETROSEN): State Participation will be through PETROSEN, the National Oil Company of Senegal. It will carry an interest of 10% during the Exploration phase and a working interest of up to 30% following a commercial discovery. 
  2. Bonus: There will be a signature bonus and a production bonus
  3. Income Tax: Income Tax will be at the rate determined by the Senegal Tax Regulation at the time of the signing of the PSC. Currently it is 30%
  4. Exportation Tax: A levy of 1% will be applied on the value of exported production  
  5. IT Equipment: The Company will provide IT support to the Ministry of Petroleum and Energy and PETROSEN
  6. Social Responsibility: The Company will provide social funding to the neighbouring population in the area of operations

Completed applications should be submitted in three (3) copies. Submissions must be in sealed envelopes and delivered, two copies to the Ministry of Petroleum and Energy and one copy to PETROSEN.

All Submissions must be delivered by 17:00 Hrs on Wednesday 30th September 2020.

Terms of Reference

As many of the parameters are already determined by law, the following terms should be offered and will be considered in the offers:

  1. Production Sharing Contracts: a PSC per block will be signed
  2. Duration of each Exploration Period: The exploration of hydrocarbons over a total duration, divided into three (3) periods, any period of which cannot exceed four (4) years
  3. Minimum Work Programme per block for each Exploration Period: to be defined as:
    • Licensing existing 2D and 3D multi-client seismic data
    • Reprocessing exclusive seismic data
    • The assessment of oil potential
    • The acquisition and processing of new seismic
    • Exploration drilling
  1. Signing Bonus: the Company or Group of Companies should offer a Signature Bonus to the State of Senegal, and a Production Bonus in the case of a commercial discovery
  1. Minimum Amounts from the Training Budget:
    • US$200,000 per year during the Exploration phase
    • US$500,000 per year during the Exploitation phase
  1. Minimum Amounts from the Promotion Budget:
    • US$200,000 per year during the Exploration and Exploitation phase
  1. Minimum Amounts from the Social Fund Budget:
    • US$200,000 per year during the Exploration phase
    • US$500,000 per year during the Exploitation phase
  1. IT Equipment: the Company or Group of Companies will provide IT Support to the Ministry of Petroleum and Energy and PETROSEN.  The minimum amount is US$150,000.
  2. Social Responsibility: the Company or Group of Companies will provide social funding for the neighbouring towns of the project. The minimum amount is US$250,000

Evaluation of the Bids

Prior to the end of the Licensing Round the Minister of Petroleum and Energy will implement the Evaluation Committee. The Committee will evaluate all the valid bids, using the following scoring grid:

Following the evaluation of the bids, the results of the tender will be announced one month after the closing of the bid round by the Minister of Petroleum and Energy.  The successful applicants will receive a formal written offer of the terms of award and a model PSC.

Successful applicants will have one month to accept or refuse the offer in writing.

The evaluation report may be sent to any bidder who makes the request.