8/14/2019 Norwegian Oil for development in Nicaragua

1/2

Nowgan Pou Dcoa

O i l f O r D e v e l O P m e N t

2006-2007

46

6.9

N I c A R A G U A

Project:

Assistane to Petroleum Setor-Phase IV

Cooperating institution:Instituto Niaraguense de Energia (INE)

INE is the state organization whih is responsible or regulations, norms,

ontrol and taxation o the eletriity and hydroarbon setors. The main

ooperation between the INE and the Norwegian Petroleum Diretorate (NPD)

is onneted to the Department o Hydroarbons in INE (Direion General de

Hidroarburos, DGH), whih is regulating both the upstream and downstream

ativities. By 1. Marh 2007, the hydroarbons division o INE has been trans-

erred to the Ministry o Mines and Energy, and Vie Minister Lorena Lanza is

in harge o the division.

Goal:to ontribute to the eonomi and soial development and poverty redution

by identiying and developing new felds in the use o the ountrys natural

resoures,

Objective: to ontribute to seure an environmentally sound exploration

and possible exploitation o petroleum resoures by reating apaities,

at Niaraguas government level.

Project period: 2005 - 2007

Total Budget: NOK 2.25 mill

cOUNTRY FAcTS:Ofcial Name:

Republi of Niaragua

Capital:

Managua

Chie o state:

President Daniel Ortega

Saavedra (sine January 2007).

The president is both hief of

state and head of government.

Population:

5 570 129 (2006)

Petroleum sector, key fgures:

Average oil prodution: 0

Annual gas prodution: 0

Organisation o the sector:

In 2007, the former INE has been

transferred to the Ministry of

Energy and Mines (cNE), whih

is regulating the hydroarbons

setor

8/14/2019 Norwegian Oil for development in Nicaragua

2/2

Nowgan Pou Dcoa

O i l f O r D e v e l O P m e N t

2006-2007

47

The programmeSpecifc objectives are:

Updating o the petroleum database Implementation o the monitoring system Analysis o new seismi data Updating and improving o the national

ontingeny plan or emergenies related to theexploration and exploitation ativities

Training to INEs sta through seminars,work-shops, and ourses abroad

New promotional ampaignMajor risks:

There is the possibility, but with a low probability,o external risks related to politial unrest.

There is a low probability or institutional risks,suh as loss o qualifed sta assigned to the

Programme and aeted reurrent osts as a result

o budget limitations ater the end o theGrant period.

Contact:

cNE: Li. Lorena Lanza, Vie Minister, Ministry

o Energy and Mines, lorena.lanza@ne.gob.ni

Ing. Veronia Artiles, Head o Petroleum

Inormation Department, vartiles@ne.gob.ni

NPD: Mr. Fridtjo Riis, Projet coordinator,

ridtjo.riis@npd.no

cooperating Institution

NORAD

Brie history o the projetThe institutional ooperation between the INE and the

NPD was initiated in 1989, as a part o support to the

petroleum setor. No petroleum exploration had taken

plae in Niaragua sine the 1970s. In the frst phase o

the programme (1989-1995), it was prioritized to organ-

ize and enlarge the existing data base and to evaluate

the petroleum potential in order to prepare or renewed

exploration. The programme has been prolonged in

order to ontinue the institutional ooperation during

the liensing round, negotiation phase and the ollowing

up o the new lienes. The liensing round is based onthe reent Petroleum At, whih was elaborated with the

support o the Inter Amerian Development Bank, and

approved in 1998.

The main speif objetive o the phase III o the

ooperation was to assist INE in their frst liensing

round in 2003 and the negotiation o exploration and

prodution lienes in 2004-2005. INE entered into

negotiations with 4 ompanies. In 2005 one liense

ontrat has been signed with one ompany, Oklahoma-

Niaragua SA (Indoklanisa), in the onshore Paif.In 2006 urther three ontrats were signed with the

ompanies MKJ and Infnity or 4 areas in the caribbean

Margin. The Indoklanisa onshore onession is now

operated by the canadian ompany Norwood, whih

started a drilling ampaign in the end o 2006. An oil

and gas disovery was reported in February 2007.

The situation o the onessions in the caribbean is

presently being disussed by the entral government

and the loal authorities o the caribbean side, and

there has been no exploration ativity there.

The urrent programme is a prolongation until 2007o the institutional ooperation between INE and NPD.

The ooperation ontinues with tehnial assistane and

training. The ontrat or the ooperation will be signed

in 2007

Ativities in 2006In 2006, there was no NPD ativity o signifane, sine

the politial situation prior to the eletions has not been

lear. NPD has been in ontat with INE and with the

embassy to ollow the proess o establishing the new

phase IV o the programme.

Costs 2006

No osts to be reported.

Plans 2007The Niaragua projet is awaiting the signature o the

ontrat between cNE and NORAD. It is expeted that

the projet will start up in the end o the seond quarter,

and that it will involve training, assistane on updating

o the data base systems, assistane in monitoring o the

exploration ativity and setting up a ontingeny plan.

It is expeted that the projet will need approximately 4

weeks o assistane. A urther delay annot be ruled out.

6.9