EDA (Exploration and Development Agreement)

An Exploration and Development Agreement (EDA) is a legal contract between a government or landowner and a company that explores for and develops natural resources, such as oil, gas, or minerals. It outlines the rights, responsibilities, and sharing arrangements, including how the company can explore, extract resources, and what royalties or payments are owed to the landowner. The agreement ensures both parties understand their roles, minimizes risks, and promotes responsible resource development while providing economic benefits.