Practical issues in structuring seismic licensing and acquisition agreements

Some issues facing the geophysical industry in the area of licensing and acquisition agreements are discussed, focusing on a very large business segment of the industry called 'non-exclusive' seismic data (commonly referred to as SPEC data). A historical perspective of the industry in the Gulf of Mexico is presented, highlighting some important aspects of data licenses. The benefits of licensing three-dimensional data to the exploration industry include: (1) economy of scale, (2) 3-D is more affordable, (3) reduced barriers to entry by independents, and (4) improved success rates and reduced risk. A list of 'SPEC' companies in the Gulf of Mexico is provided and the data licensing process is outlined. There are two basic types of seismic data use licenses. The first is for a single, one-time transaction, and the other (which is more prevalent), covers multiple use licenses contemplated over a period of time. This paper briefly outlined the meaning of some important terms usually found in a license agreement, among them ownership, rights of licensee, term, disclosure to third parties, and transfer. International 'SPEC' programs and the requirements for a successful 'SPEC' program are described. The requirements include: a stable host government, reliable, competitive system of concession offerings, long term scheduled offerings, clear, consistent, and acceptable concession terms to oil and gas companies, and consistent, fair and timely method of evaluating bids and awarding concessions. 001CA9901758