In early December 2018 the Republica Dominicanaâs Minister of Energy and Mines signed USD 1.07 million contract with a consulting company for the evaluation, planning, promotion and execution of a Bid Round for the exploration and exploitation of hydrocarbons. The model contract which will be used for the bid round will be the Production Sharing Contract (PSC). The tender to hire consulting services was first announced in May 2018, with nine companies from five countries presenting proposals - Â âThe country has to make the leap to reduce its dependence on oil imports in all ways and one of the most important is to promote the exploration and exploitation of hydrocarbons, especially gas, both for its economic and environmental benefitsâ, said the Minister Antonio Isa Conde.   Dominican Republicâs Minister of Energy and Mines (MEM) Antonio Isa Conde presented in late August 2018 the âInformes de Trabajos 2014-2018â, which reports the work that has been done since the creation of the ministry in 2013. Â The Base Nacional de Datos de Hidrocarburos (BNDH), the national digital archive which contains geological and geophysical information for the country starting in 1903 till 2013 was developed by a third party and presented in 2016. It has 21,500 km of seismic lines, 1,490 maps and plans, 805 seismic profiles, 212 wells â which the ministry estimates it has an acquisition cost of USD 145 million. The MEM identified six potential zones for hydrocarbons, the basins: Enriquillo, Azua, San Juan, San Pedro de Macoris, Ocoa and Cibao Oriental.  The first hydrocarbon exploration and exploitation regulation was issued in 2016 through the decrees 83-16. The contract for exploration and production of hydrocarbons was issued in early May 2018. According to the contract, the exploration period of the contracted area may be up to six (6) years following the signing of the contract and may be extended for up to four (4) additional one-year periods. Modification of this term and its extensions shall be authorized by decree. The exploitation period of the Contracted Area may be for up to twenty (20) years and a maximum of two (2), five-year extensions each. The first extension may be requested upon reaching seventy-five percent (75%) of. the term of the contract granting the rights for the exploration and exploitation of Hydrocarbons, Oil Reservoirs or other Hydrocarbon substances, while the second extension may be requested when fifty percent (50%) of the term of the first one has elapsed.  Background Information  In early June 2011, no additional information had been received concerning a possible bid round in 2011. In September 2010, the Industry and Trade Industry's Mining Department director, Octavio Taveras, announced that the Dominican Republic planned to launch an international oil exploration round in 2011. The announcement follows reports of a new oil seep in Higuey, La Altagracia province in the eastern part of the country. GHGeochem in the UK analyzed samples and reported that the oil seep is better quality than that found in Azua province. An assistance agreement is being finalized with MDOIL whereby the company will help characterize potential hydrocarbon bearing sedimentary basins in the country including the exclusive economic zone. The declaration follows a late 2009 announcement made by the department that Madrid's Complutense University found traces of natural gas in marine sediments in an area known as the Muertos Trough offshore. The Directorate is waiting for authorization from the president to sign a contract with MDOIL which hopes to expand the study to include all the basins in the country and to correlate them with the previous data.   In early September 2010, there were no tenders planned for oil and gas exploration. Interested companies can approach the ministry directly concerning any of the seven identified basins. The onshore areas that have been outlined as potential opportunities are in Bahoruco, Samana, Azua and Maria Trinidad Sanchez provinces, and offshore in Ocoa and Samana Bays and Banco de la Plata. However, the country's 1958 hydrocarbons law must be updated as the regulatory framework is not clearly defined and does not attract investors.
In early December 2018 the Republica Dominicanaâs Minister of Energy and Mines signed USD 1.07 million contract with a consulting company for the evaluation, planning, promotion and execution of a Bid Round for the exploration and exploitation of hydrocarbons. 