1. n. [Oil and Gas Business]

A grant extended by a government to permit a company to explore for and produce oil, gas or mineral resources within a strictly defined geographic area, typically beneath government-owned lands or lands in which the government owns the rights to produce oil, gas or minerals. The grant is usually awarded to a company in consideration for some type of bonus or license fee and royalty or production sharing provided to the host government for a specified period of time.

2. n. [Oil and Gas Business]

The geographic area in which the government allows a company to operate.