2,2.2 Exploratory Drilling 



Exploratory drilling is the major activity of the exploration phase 

 of the offshore petroleum development process. This activity follows 

 the geophysical surveying of the offshore field. If the exploration is 

 successful, it is followed by production drilling (Section 2.2.3). 



Exploratory drilling occurs after seismic surveying has determined 

 that a commercial potential for oil and/or gas exists in an area and 

 after a Federal lease-sale, in which tracts are awarded to oil and gas 

 companies on the basis of competitive bidding (See Figure 10). The 

 lease award gives the lessee exclusive rights and privileges to drill, 

 extract, and dispose of oil and gas deposits for a period of five years 

 or as long as oil and gas may be economically produced from the tract. 



Figure 10. Exploratory drilling - project implementation schedule. 



INVESTMENT COMMITMENTS: jite Purchase 



Site Option(s) Taken 



Start of 

 Construction 



YEARS ••• 



PERMIT ACQUISITIONS: 



Drilling 



Acquisition of Use and 

 Location Permits 



Operating Permits 



Preconstruction Permits 

 (Includes EIS) 



63 



