Companies which are interest to participate in the Bid Round, must send a letter of interest to the Minister of Petroleum and Energies and a copy to PETROSEN to express their interests.   The Promotion Committee will record their interests on a register book open for the 2020 Senegal Licensing Round. The Bid Package is sold at the no refundable rate of US$15,000 per package. The Bid Package will include:

• No Disclosure Agreement to be signed by PETROSEN and the oil company,
• List of available seismic data in each block and the access conditions,
• List of existing reports and well reports and the access conditions,
• All the legal framework in connection with the bid round are stated below:
  • the Petroleum Code – Law 2019-03
  • Decree of Application of the law
  • Petroleum Operations Regulation
  • Model of Production Sharing Contract
  • Model of the Joint Operating Agreement
  • Tax regulation.

The Bid Package will be available after the closing data of the Roadshow, February 29^th, 2020. Only companies that have already bought the Bid Package are invited to data room by PETROSEN, in Senegal.

Companies, which justifies the technical and financial capabilities, can apply for more than one block, and each application is to consist of one Submission and should contain the following information, which are a summary of the key terms of the Decree of Application and the Model of PSC:

1.Name of the Company or Group of Companies: The full name of the company or group of companies applying for a Exploration and production license,
2.Juridical Form of the company or group of companies: the nature of its business and the place of incorporation,
3.Update certificate of incorporation,
4.Addresses: Address of the main Office and the main places of business
5.Update Statute of the company:
6.Name of managing Directors: Name and qualification of the members of the board, managing directors. Authorized agents and legal documents proving their ability to engage the company
7.Board of directors list and informations duly signed,
8.Annual financial statement: evidence of the financial and technical qualification of the company or group of companies with copies of the audited accounts of each company for the last three (3) financial years
.9 Technical justifications: Evidence of previous or existing oil and gas activity
10.List of shareholders: list of the 10 main shareholders or shareholders have totalized more than 50% of the capital,
11.General and special Auditors: Names and addresses of the auditors
12. 12. Name of the block:
• Surface: …….. km²
• coordinates

Duration of the Exploration license

• 1^st period of a maximum duration of 4 years, with a minimum work programme and financial commitments
• 2^nd period of a maximum duration of 3 years, with a minimum work programme and financial commitments
• 3^rd period  of a maximum duration of 3 years, with a minimum work programme and financial commitments

Surface rental:

• 1^st period: an annual fee of US$30 per square Kilometre per year
• 2^nd period: an annual fee of US$50 per square Kilometre per year
• 3^rd period: an annual fee of US$75 per square Kilometre per year

Relinquishment:

Percentages of the exploration permit area to be relinquished at the end of the 1^st and 2^nd

Training fees: An annual provision for training of the Senegalese agent. There will be a provision during the Exploration phase and a provision during the Exploitation phase

Promotion fees: An annual provision to support PETROSEN during the Exploration phase.

Duration of the Exploitation license: The duration of a Exploitation License is 25 years. It can be renewal for a period of 10 years.

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%

Royalties:

Profit sharing: The share of the State cannot be less 40%. The Profit Sharing is determined by the R Factor as:

State participation (PETROSEN): The State participation is through PETROSEN, the National Oil Company of Senegal. It is a carried interest of 10% during the Exploration Phase and a working interest of up to 30% after a commercial discovery PETROSEN. The 10% carried will be during the Exploration and the Exploitation phases.

Bonus: There will be a Signature bonus and a Production bonus

Income Tax: The income is defined through the Tax Regulation at the date of the signing of the PSC. Today it is 30%

Exportation tax: A levy of 1% is applied on the value of the exportation production

IT Equipment: Company will provide IT support to the Ministries and PETROSEN

Social responsibilities: Company provides social funds for the neighboring population of the area of operations.

Completed applications should be submitted in three (03) copies. Submissions must be in duly sealed envelopes and delivered, with two copies to the Ministry of Petroleum and Energies and one copy to PETROSEN.

The Submission has to be delivered to the Ministry and PETROSEN before the 17:00 Hrs, Friday 31 of July 2020.

Ministry of Petroleum and Energies address: Ministry of Petroleum and Energies, Building Administratif President Mamadou Dia – 4^e Etage – BP 4021 Dakar Senegal

PETROSEN address: PETROSEN, Route du Service Géographique, Hann, BP 2076 Dakar – Senegal

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