Concession
Definition
Concession in the energy sector refers to a formal agreement or contract granting a company the right to undertake exploration and extraction activities within a designated area. This typically involves extracting natural resources such as oil or gas. Licenses for these activities are granted by governing bodies to organizations, allowing them to conduct exploratory operations and potentially develop full-scale production facilities. The mapping of these activities is crucial for management, regulatory compliance, and strategic planning.
What is Concession in the Energy Sector?
In the energy sector, a concession is an authorization that allows a company to conduct exploration and drilling activities in a specified geographic area. This includes both the discovery of new resources through exploratory drilling boreholes and the extraction of these resources once they are confirmed to be viable. Companies are required to obtain concession licenses, which delineate the rights and responsibilities regarding drilling and extraction activities. These concessions are often mapped to provide a comprehensive view of a particular region's resource potential, including the spatial distribution and status of boreholes and related facilities.
Using Geographic Information Systems (GIS) to map these concessions and associated boreholes is a critical practice in energy management. These maps enable stakeholders to visualize drilling locations, analyze spatial data for resource planning, and ensure compliance with environmental and governmental regulations. By integrating data on topography, land use, and environmental considerations, these maps serve as powerful tools for decision-makers in the energy industry.
