Revenue from services related to the exploration and extraction of crude oil is recognised
when the crude oil is delivered to the Parent Company customers and is determined as the
price at which crude oil is sold by the Parent Company net of certain costs allocated by
the Parent Company as follows:
- Royalty at 20% of gross revenues.
- Fiscal levy at 74% of gross revenues net of royalty, scaled according to production
levels and crude oil price.
- Marketing fee at 2% of gross revenues