Clarification for additional well applications

Dear developers,

On 10 September 2017, the RGCU of the AUC published the application forms for the funding of an additional full-size well under GRMF. In this regard, the RGCU has received an inquiry from a developer whose cost estimate for the first two well has already been approved by GRMF. The developer requested clarification, what costs should be included in the new cost estimate for the additional full-size well: the costs as stated in the previously approved cost estimate, or the costs based on the prices as available today.

The RGCU hereby confirms that developers applying for an additional full-size well should submit the cost estimate based on the prices as available today, but need to be aware that the caps according to AWC guidelines apply. In any case, the previously approved cost estimate for the first wells remains unchanged.

In the context of the submission of cost estimates, in addition to previously approved cost estimates, an already published decision of the RGCU must be pointed out again: Developers can include additional ESIA costs in the cost estimate that have been omitted in the initial application, but no other amendments / further costs can be added to the cost estimate. Please note that only eligible ESIA costs as defined in the GRMF Developer Costs can be added to the previously approved cost estimate.

Your GRMF team

Release date: February 25, 2018