exploration contracts

Exploration contracts are agreements between a government and a private company that give the company the rights to search for natural resources like oil, gas, or minerals within a specific area. In return, the company invests in geological surveys and drilling to find these resources. If they discover commercially viable deposits, they typically have the right to develop and sell them, often paying royalties or taxes to the government. These contracts define the terms, scope, and duration of exploration activities, ensuring legal and financial arrangements are clear for both parties during the resource discovery phase.