05.07.2009

These regulations set out the minimum experience required in order to be granted an offshore petroleum right, including that of contractors who must have experience in carrying out offshore seismic mapping, necessary drilling experience, etc. The regulations also stipulate that an applicant for an offshore preliminary permit with priority right must have proven financial capacity to cover half the estimated cost of executing the work program to be approved for the license. Under the regulations, an applicant must also relinquish at least 40% of the area of the permit area and will be entitled to request a license under the priority right on the remaining area only. The area of an offshore preliminary right permit with priority right may not exceed 4,000 square km

To carry out offshore drilling an artificial drilling platform must be constructed. This artificial platform can take many forms, depending on the characteristics of the well to be drilled, including how far underwater the drilling target is. There are two basic types of offshore drilling rigs: those that can be moved from place to place, allowing for drilling in multiple locations, and those rigs that are permanently placed. Moveable rigs are often used for exploratory purposes because they are much cheaper to use than permanent platforms. Once large deposits of hydrocarbons have been found, a permanent platform is built to allow their extraction.

In 2000 offshore drilling cost approximately $100,000 a day. By 2008 this figure has increased to $300,000 – $400,000 and even reaching above $500,000 for deepwater drilling

The term offshore indicates a portion of open sea and, by induction, the activities carried out in such area, while onshore refers to land operations