The Eritrean Ministry of Energy and Mines offers 11 blocks in the country on a direct negotiation policy.   Â           Eritrea - Open Blocks         Â              Basin Names         Block Name         Onshore Offshore         Block Sqkm         Onshore Sqkm         Shelf Sqkm         Deep Water Sqkm         Main Political Province         Â          Â              Red Sea Basin         Bahri         Offshore         14,722         Â          1,004         13,718         Red Sea         Â          Â              Red Sea Basin         Amber         Offshore         14,597         Â          12,579         2,018         Red Sea         Â          Â              Red Sea Basin         Beilul         Onshore         14,356         14,356         Â          Â          Debubawi Keyih Bahri (Southern   Red Sea)         Â              Red Sea Basin         Defnin         Offshore         13,267         Â          6,628         6,639         Red Sea         Â          Â              Red Sea   Basin~Northeast African Fold Belt         Gelalo         Onshore         12,287         12,287         Â          Â          Semenawi Keyih Bahri   (Northern Red Sea)         Â              Red Sea Basin         Tio         Offshore         11,326         Â          10,605         720         Red Sea         Â          Â              Red Sea Basin         Dhunishub         Onshore/Offshore         9,734         66         9,241         428         Semenawi Keyih Bahri   (Northern Red Sea)         Â              Red Sea   Basin~Northeast African Fold Belt         Gulbub         Onshore         8,826         8,826         Â          Â          Semenawi Keyih Bahri   (Northern Red Sea)         Â              Red Sea Basin         Assab         Offshore         7,562         Â          7,562         Â          Red Sea         Â          Â              Red Sea Basin         Zula         Offshore         6,923         Â          6,923         Â          Red Sea         Â          Â              Red Sea Basin         Dahlak         Onshore/Offshore         6,917         799         6,118         Â          Semenawi Keyih Bahri   (Northern Red Sea)         Â              Source: IHS Markit         Â          Â          Â          Â          Â          Â          Â© 2020   IHS Markit         Â          Â         Â   Licencing  According to the Ministry in 2017, licenses in Eritrea are awarded through direct negotiation or bid rounds. Production Sharing Contracts (PSC) are regulated by the Regulations on Petroleum Operations (LN 45/2000) and the Petroleum Operations Proclamation.  Following negotiations with the Ministry on the PSC application, an MOU will be signed with details of the agreement before the final signature of the PSC.  The terms of the PSC cover up to four years of exploration period which can be extended for a maximum of another four years.  The Development and Production period consists of up to 25 years with up to ten more years of the extension period.  The minimum work program, expenditure obligations, profit share, cost recovery and royalty are negotiable. The income tax is set at 35%. Participation of the government is set at around 45% (negotiable).  In the case of production, operators can export the hydrocarbons free of export duties, taxes or imposts of any type.  Â   Contact  Teklehaimanot Debretsion  Director â Hydrocarbon Division  Tel: +291 1 120 089  Cell: +291 7 361 305  Fax: +291 1 127 652  Email: tekleham@moem.gov.er and/or tekled@yahoo.com  P.O. Box 5285  Asmara  Eritrea  www.moem.gov.er
The Eritrean Ministry of Energy and Mines offers 11 blocks in the country on a direct negotiation policy.  