The Council of Ministers approved a decree giving the company Oil & Gas Petroleum, Spain, part of Gas Natural, permission to carry out research for hydrocarbons in the areas ‘Calderín’ and ‘Horquilla’, located in the provinces of Cádiz , Huelva and Seville, permission that also covers parts of the seabed.
These research permits are granted for a period of six years and entitle the holder to investigate, exclusively, on the surface for the existence of hydrocarbons and the underground storage of the same.
The Royal Decree also establishes the obligation of the company to establish a civil liability insurance to cover any damage to persons or property. According to the revised Law on Environmental Impact Assessment Project, approved by Royal Decree of 2008, projects or actions undertaken in the exploration areas will later be submitted, where appropriate, in order to assess the impact on the environment.
The Oil Industry Act 1998 provides that deposits of hydrocarbons and existing underground storage facilities within the territory of the State and in the subsoil of the territorial sea and seabed under the sovereignty of the Kingdom of Spain are considered to be in the public domain and require an administrative concession.