Title lase No. - Title to Assets Office and senice of Yotice 28 Consemation prevention of Loss and Enviromental Safety Custcn Exem~tians and Zxchtzge Control 29 Respcnsikility for 3~tge 3 4 Privileses of the Gc-Jer=ezr Xepresctati-~e 3 4 Employment Zzi-:ilects znd tke Traisixg of ZOY lezsozsel Laws and ?.eq:lati=zs 18.1 General .. . 18.2 aig2ts ec~trtlltd 5y t:zs Xgreekent Breach of Xqreerext tz5 ?over of Czacella=icx ioree ~ajeurt Local Ccntrtctors azd Eancftct:red Xzterizis Gas 27.1 ~ssocizted Gas 27.2 ~r-1 Gas Siscovery -. Confidentiality 28.2 General 28.2 Use or Disclosure by Ccatractor 28.3 Approval of the HIWISTRY 28.4 Exemption Ancillary aishts of tcztracttz Hiscellaaeocs 3 0.2 Beadiags 30.2 Entire Agreese== Assi~~ent and ~ut~srf zaticz. by tte HINISTaY The Official Text The Sig=at-i~re il2PUBLIC CF YL!N PRODUCTION .SHAIZISG AGiiELvS,XT BETFEES MINISTRY OF OIL AND XINERAL zsouacss CIYSE ZXTXO slc %??D YOXSK XP9RO YZXEY a.s PND CWJE-XXSSAU YS.V,sN 3.7 PAT Z-h'S,=-? ZiXFS (F9J?W-.UT) TIXITF3 . . C Tkis iqziz.en: LS =zae ~nl eziirei . . izi. i3 SCEE~Z s1 rke/b.l;3 & ,&JZ.[ 14 12 J corrasl;s;;clr.q ta =:f2 a 'L i-- - G y c 2. !:.H~,,,.,; - ----- - - cc.-.sc,r,zrs zke Xcreexer.s Sst-..-een =.".a :.;=;=LAC f F :Z1.:E:7 <:lszeiza -. .*--.-I, & .,-,.----.- -- ,, 5s =,-: cr "yZlqreaz.enc ; ~.-.2 /-- - 2evelc-,=e.r.t, grsc~cticn, sczzisg and trens-,cr=i.?g of Crxde Oil LZ :3q .;creenenz Xrea, 2nd pcssesses all the necessarl financial resources and ; :::@ sactniczl end zrcfessicr,al cc=;e-,snce t3 carrl cut the r'etroleum Operat,-.., cescri2ed under this Acreesent. \I .,OW, TSZ?.ZFG?.Z, tke carties kereto agree 2s to cke folloving: (2) vhic:? is tho ck-iier 6irectl-y or c of share ~"2p<'=-' ->: . --: ;.. - cezf~rrizg a r;a~~,,,~ tz -;ctes at st==>2-31Cers1 ;eetings c2 a p~r3i 3 (3) ;;hcse share capital cer;Zerzixg a najcrity of vctes at stocjc~old~: . . --. :EE~~.-.J cfayc.i c=-;e:.:r and the snare =z?it~l cczfcrri ng a j C- - - ....:. .. . . of -V-C=ES s=cc..r-.c~rars' =eeti:g =2 B ;a,r=y hereco .zze c*--z=:- Cireczly or iz=irectly ty zke ceze c=z;tzy; cr . .. (4) ;;hick Ziz~ctly or ~~ziz~ctly ==:t==Is, is c-----t -..,,,:led 5y, .=r i: ander cc:.z,on ccxrcl sic5 a Far=? herezs, Tor tke ;urp=se cf this def:-": ,..;-,cr?, tkt ~ord tlccntrolw z~zzs rid -. riqht to exer.=i-ce -=re tk2.1 i=Pt? zercsnt (50%) of zkz -..ctFz~ riqhzs st sharehcii-erst or pat-erst z~etinqs. icr the Fzrpcse d) =his Zefixiticx, =he tc,~, "2arrp herecsn r;;ear?s t5e XI?JISTTZ cr ~$4' of the cexpaniss cs:;rising CF"-" b.~ ---b- "" b3. -. 1. 2 taX~zsement" : 3all seax =:is Fr-2s-c--- -----1-x =:ari.;g Agrzenerit and azy ;or? cr' it. LJ 1.3 "Aqzeement AreaM : :-Zeezs -' ,..e area ts Cestrit~d in .\nnex zna s,i;=;:.'t cn r:te ~zp Lzkeled .:r.iiex "511 ;.hic:l 2r2 a=tsckei tc this Agreezenr. ~,53 -,,.e ir! ts===zer.cs wit,': Article 3:-.--- ares zay be reduce5 frcx ziza 22 -'- . . &L 1 b*-S .:qr€€Zex. !I . "Asscciated GasM : Associzred G+s is eke Gss xhic:? Is associa:ed -;id-d C-.~ ,,,e Oil %hen it is crc5x=ed fraz zzy -..-ell in the .:greenent Area, =: ccx 2s zc~zirod aitzr sa;errcicn ZE =.L.e less. separ~cors. The afcresz.Yl descrigticn includes all the elezents tksc are cccponents of -,= Asscciaced Gas sricr s= its ;r=cessi.-.; t5rouqh the1 ext=tcti=n cc~2e~sztit~, discillaci=z ad liq:iSirzrizn facilities. . j i - - ,.,a oo* -.- ' : LZ;;5,--< -- '& -.-• 2-----.- ...a ------- - - - L-,rerte~re =-- of s1;:=y ! 53) degrees Fznrerikeit and at=ospheric F~ESSZS~ Cf 14.65 PSIX. , < 1.5 11Csxercial Discco~erl : !a~ sCc5 ~ell ?as been te=-,sd a:: -. r+ cc=;leteS, rcczr=rzg =a the tboye. , , . i 1.3 l~c=~ercial oil Sielll' : !<"EE~s tke first ;;all cn z-1:~ qeclogictl ftzr-zzi . .C.. . . c, after tesrizg fcr 3 ;er:=a cf 2 z~r2 tkan thirt;r (3l.4 ... c===ecuti-.-e ciays ir: BC==Z=ZRCO, -;i=n -~t::5 azi 'accepted ;e---i -- -- =:.. - -. . : . . _~z;_-zs=r;r ;r=tzc=icn ;racrFcas ez= in =.'.a =;:zzcz cf tke CO:rT?$.CZfX ic-2 -. . -. ct~ejle cf ;rccxsrzq ~scrsle~x at a raza r.L.e= tcc:omicall;r jusr:z:tf t.L..t cnder.trki?g .cf ,g;g~z,.iezl YCZ~:. Tke &-Le cr' estab1ishl;ent cS..'.J C=:-yercial Oil Well is :kg d~tt =r! ;;hit? sf-,= Cf!,TX~COR~~;;ccifics :-::: . . . . ., . xI:;fSyqY tkec such ~~11 has tssn c=z;lezsZ a:* =assea accsrdizg =a :?,, z==-:e. Such xo=ics is ta =e qiven, toszck~r ;irk a reporc of the re=;-- . . - zes.;Lts an5 ctker :zE=--rsitx ava~~ab:e fz== tka ;.ell, 50 late= =kz --- : --- &-a-e - J (30) 5zys f=lLsxL=: =:la cczzl-sic: r2 s~ck rts~i;).qI j . - r -- . r1C2ST3ACTCZ" : >Zszzs tks Ctz;trry(s) sec zzrrh in E.'e ~rez==lo, . . L.CI -L; Lw -..-s A~zsezezc zz= czy cf -L ,..eir ~ssF~:ees, cs ;rcvideci fcr in Artirl i 23 zf this Bgreezezz. . .~: 1.12 Ir!2epen2ent UnitIr : :.Ie~=s ax:/ c==;=rtticx, auth=rltir cr cczzezy, =: -. . . Cizsitsrzta cf tke !-!L!:IfTZY, aut:t=rired ty the Xixiseer acc:r=i:g r ' .:rricle 31' cf , this.-..;~z~a=s?lt, . tc 2ndertz.-:e.. Lke.. zi.q;?ts and okligac.'"-. i %-.., : . cf tke !.II:TISTZf cczcarzFz; this .:~reezez=. ... . -.. . ... I I , -. . - 1.13 w3svelo~=ezt1' : 05tfl i=cl=be 2: is zoz ,~z~zed zs, all the . .. c;srscic:s and aczivitiss pzrsi;an= ta apy=z:-;ed Xcrk ,'rccrzms ~nd 2:5qe=: L .; .-. r this .:greezezr, rzc~.;J1y >at ncr LizirzB to the drillizz. - .... -. de~~enizg, aluqqizg ttck, siCe --= -,-ckizq, racrzllrnq, cczipletixg z: eqdl~3izg cf develcczenc -..-ells; the desig:, sczssc:c-,Fcn, installsci=r. . c;erstisn, se-miclzg 2nd zaizrenazce sf sq~i;zent, lines, systezs, -. fzciiities, plants and relcted =~eratis.ls in ccnnection with t* ~)raG-- -, -,,ccicn and caereti=a sf -;ells, the ;rs2ucticn, saving, treati:. ;r=cessing and hanclirig cf letroleurn; L!e takicg, saving, stcr:? tracsporting and deliverizg of Lipid Crtce Oil for export; and +"r -q unde=aking of re-?ressuriaq, recycling and other secondary reccve . --a- a 2, -; -cts. . ' 1.I4 "Developnent Area1' : weans =he enxire Gevelcszienc 3lock or Develc;r,~" 3lcc:cs ccvering tke encirs ~eologic21 str2crzre czpable of productic :. as lafixed ix a Req~est fcr Csz;rersFsrr co SE-;elr~;r,ent Area siqr,ed k.~ 5; CC:::?-;CTSX and ap;r=ved t:; =:lo, XI::ISTX'J. 7 1.15 rr~evelopmeni: Blocklf : Xeazs tn ar=s, tke ctrzer poizzs cf vhich hzve .-< be ssincldent wit:? six (6) . . xinucss by six (6) sixutes latitude ezf Ic;;qit.:de divisicns acczrZlz3 to the Inter.-.~ticnzl Grid system excfq xhers li~ited by the existlzg bcuz=aries cE eke Agreement Area. ,t R 5 1.15 ~'3erelo~xent Eqendit=resu: !/eazs all .ccscs, ex-,er.ses and expendi=-:z,& f=r 2evelc;zent c~eraticzs ;it3 tke exce?=F=a cf Cseracing Zxpenses.:;i &. 7.. 17 rr5evelopaent TerioCII : s tke ;crisd cr cs.-.~xc-,i~g 3eveJ.c;-zz- ccerzciszs cs ;rcvi? bcc;~ aar-,;ts A..-; ----.., -- ---= -..- - =>--1 .l,-,,-,~~ -,%- r Zerlcd 2s crcviCea . 1: - 032 fefizei 13 Xr=itle 4.3 =f =>is ;.qreez~:=. 4 .' 7 . . I 12 IIE&--lcrctis~ Ex3enCitares" : Xca~s 211 ,=\----A : '..- e~ , CZS~S end .. > - ex;axses ir.cm2rrea r'cr Exglcrztitn rstjvitlss after the Zffective 3a~ of =:is Agreexent. . , . . :id ,' . . . . .. , . 1.23 ."Sqloration ?erioc" , "Initial 2qlczrricn Zeriodl* and "~ecc:? Swloration oeriadt* : Means the ~eriocs of Ex~lcrztion as defined 2; Article 3.3. (a) m 1.14 l~hqloratio=l Work Trogrtm and Budgetf* : Means Work Progran and 5ud:c:j 9: fcr Zxplcrs=icn ES eefizee ix Xrtlrie 4 and described in Annex "CW. "3 4 ,: 2 , 1.25 ItGasIr : Xee~s Dry Gas and/or Xssocic=ed Ges. id 1.25 "~=;itial Ccr'ercial 2rc8zctic3fl : !li;ttF-,=" : :is Xgreanent. zeszs a day according t= :. . . Grc.?zrizx czlendar. fJ .j : 1.33 fl,V,czt31y Avercge Saily Set Irc9:=tioatf : ?:eazs =ks, total t*oicz.r % 2zrrtls cf liquid Crdee Cil~~rcbuced and szvsd frcx all the Develc~:.ez: Xrczs or 31ccks and zcr :sed ix fsr=aleua C;srz=i=zs durizg any Xczc?: 62.-iied by tke x:=er cf iays ix szzh Kcxt?. .- 1.34 II0;eratirrg zmensestt : Hems alL ccsts, Expenses and expenditcrc,: izcdrred after Initizl Ccz=ercirl Irc5cc=i=r!, vhich costs, expenses ei c~:~=zdlt~res zre nc= zcr.alLy decreeirble, Fn acccrdznce with gener~l:..~ aczepzed acccxztizg ;racr.i=es in -'= ,.., ' re~,,I~cz ---* Ixccstr;r .. L i: ' -*--- .' 1 i d - - Gceratixg Cczlgzny , ~nd =:?e Operzcl.?g Ccqazy , as appllcanle, aesqnc LS. to ccnduct Lle Petrsleun Operaticns as specified in Articles 3.1 and 7 1.35 ~roperati~g Cczlpany" : Means che cc=;any escadlished pursuant to Articl? 6 and Annex "Z!I of this Agreemenc. 1.37 ll~artiesl@ : Means Gcvercaent cf '3e -?eputlFz cf Yenen acting by + and chrouch che is sf Cil and Uizeral 3esources, and c?. . CC::T?'CTCR. : i 1.33 lfPet=sleum@@ : Means Liquicl Cr~de Oil of vzri=.;s densities, csphalt, 2~ Gzs, Xssocicted Gas, and a11 ccker :?ydrcctrTc;l substances char riay ST fcczB in, and ~roc:cra , cr ct?.er;ise c==ai.-.ad and saved frca tk: i Aqzzement Xraa acccr4ir.g to this Agreemenc and all substances that zsy te extrzcted therefrcx. .Q : < 1.4 0 I1Bet=oleun OperztFs~s~~ : :.Iezzs Sx;lcrati:x end 3evelc~;cent operaxi=;-.?? . . -&: ; ~nd all ctker c~eratic:~ d cz cczte-clated under LI.-.=~ Xczs~nenc. '-3 41 IIFrod~ction Shzrirg Oil11 : Xezzs =.'.e Cr"ce Cil to be shared beween .. . -1 j ST:,: end the CC!JZ?-;CTCX as descri=ed i.7 .;r:izl= 7.2 of this Agree~e..~.:: -. 42 tla-.a-- e oz uCelsaBzz QuzrterH : I.:err:s a eericld of three (f i-3 - cc.-.secxlve =onz.".s teqt,xlxj cz ,2.1'10ry IS=, X~ril :st, July ~CC, 2:': . > ! CC---"'~ ---=- Is= cf each Year. , . . . 1.43 "Xeqces': fc= Ccm-ersioa to Develc;=esz Ar=all : Xezns tke reqlest siqzc,: i ! hy the CCST.UCTOX and c~srcved =y =he XI!:ISTEX for the gurscse ZL-~ defining the Develcpzent Area wit5 r=ccec= =3 a Ccis~ercicl Disccvery =,i . - , . Oil. TI'=^ for. cf ruth ,-eq:est is ~zskc:sz =o chis Aqreenenc as A=;.,=: : 11 -2 11 .a . *Q 1. ; 7 . llWork 2rogrm and Suaseti# : Xeans tke ennual kucser and vork : $ ,) Eqisratisn and/or 3evelcczent under this Agreemen=. < 8 1.48 I#Year4@ or Ig Calendar Year1# or "Tuc Year" or llFinancial Yea3 periad of tselve (12) consecuti-re Xcntks, accar8izg to th calendar, starting on January 1, znless another startinc indicated in the ap~licable provisicn of =his Agreement. r* 1 1.49 iiyzz~" Or ItRoy" or USTXTEiV : Kezns 5 3EX'ZLIC OF j il~~*,~p.2yT~~ neans tke GGVZXME:?T sf the KZPCSLIC 2F YEXEX. - '* i " ? PrnZXES .y 7 -;ayzBZIES ii~i# iizw tic" iizw II:W ~irti iir 11 : \ I I I , , , , , , EZ=! "I!" rg this .:gre~nenr iL~: :a;-= err hereor' and ckay shall be cc=siderei ts i.2-;izg e-a1 ?ifsc= ..;;- -r,l tke grcvicicr.~ cr' ?>is Acz~c-zenz, ;r=-~z=ecr .- - =:at . I= .- A :c:r'lict 3etxeen any Annex and tke ;rt-risiczs ef c.42 zairr tce . . . .. .;QZEZZE==, tke ~rcvisiczs c2 =zs zaln =3sy cf ikis Agreez.ent . .. - >-azax Il3ll:Is an ill-2s==rti-;e --- ---- 5-2-m -L ... G, ,..--c-- -.., L..e .:creenent Arcf evezc of eny Fr.ccxsist~r.cy fet-ieen tks cc~te~ts of, t 221 .L4y3ex "5" =>e cc--=--- ..L-..;3 of Axex ".A" =;?ell _=rev,> - .:nzcx "Cit:Sets cct t2e Xixizcx Kcvi- ,.. Cblicezicn zna Yinimn ' 1 Zxpendit~re @bli~=zicn fsr etch of e t'io 5:: i - reriods. - ; '! AZZZX "Dm:ls the fcn cf ks2.k cx=rs:=ee (Lftter cf Cre6j.t). . , i i.2 (a) CCffRZCXX shzll 5eliver == tke :".!:ISz::.'r', -,,-itkin thr ezys ar'ttr tke Sf f scci-,*e 2zte, ~n irravcct jle Letter: 7 ia sr;Sstzr.tially =f-.e fcz attacked as Annex 'lD" (l'; :; . cJ Creditw) isszed ky a firsr clsss ixterzationzl Sanx Sy CONT?\CTCX 2nd acce~=r=le to the MINIST3Y in an -: kency Zive sillicn Units5 Stzczs "llzrs (U.S. $ 25'7 vhich ccrres~=zds ta tk.2 Xinixx Zxpen.=itxre Cklid-4 ~ke Initizl Zx;lcrtticn Zerisa. ... -. 'I5e Letter cf Crzait shtll rezizix valid 2nd effecciq 'i - b. .- <- 1 (6) nccchs sfter tke ent sf the said ;eriod, excepc '< . - : be earlier terxi~eted in tcccrdznce ziL5 Its te=s. . , . .. - < - -. - thirty (33) Bays after tke ~rld cf tke Initial EX ." . _- Zsrizd CC::T?..C:C~ shall, if CC"~-: ..,. --.CTCX has eiected . inco tte Seccnt Zx;lor=tizn Ferica, Zelivr co the ? a seccnd Setter of Cradi:, in the fc-3 and on . ccaditicns as r.",e firs=, in the enount of the .!. 5-xpenditcre OSllcation f=r the Second ~xploration Per :5) I:, ar =he end cf t:e 1.11~121 L+---G~--.. ; :, -., ,.., - - - Explcrz=Fc~ ;erF=d cr 2c r3e ter=lnatica cf this Agreernen-9 as appliczble, tke CC:;TRACTCR has failed to fulfill i<{ Minimum Work Cblisaticn for the a~plicable period, and neicke'y CONTRACTOR nor tke bank under tke -appliczbie ~etter of Cro,ai: -. has-paid t3e entire amocnc corrosponding to the amount of t.q - I .% : applicefile Letter of Credit (said anouhc being the origi,?a\j - >- I_ . .' amount of said Letter of Credit reduced as provided belcu), then the XINISTXY snall be entitled to drtw the amounc cf sai* Letter of Credit and the kank will 2ay in acccrdance with it I - -I ter,s. - 1 , .J. ! ! (c) As to ezch ?erlod cf Exalcrzticn, the e=ccr(t of the Lattsr c? , . I -I . . . - , Credit shall be redcced as and ;hen each part of the ~inizd ',;>-.-< . . . , Work Obliqaticn is ~er='c,~-ed by ize ancane correspcnding t: - . i .'. - ,. such =arc as zrc-~ided in .:.inex "C". @ - *L: Ezch redcc=icx silall 4e ef,'ect~i ky a lecter signed 5y -tL.; MINIST3P and delivered to the issuix =tnk in subste~clal~- - - - - tke fcm tttached 2s Zxkigit -L to .:r,zex "DW. Prcvide-' hcrever, if =he CCSTZ2CZ:X Zeli*.-srs such a letter =a LT . =..=p; =.r { "" L' :;$.I XIfJISTX'i 2cr its SA~. ....Lr--, -r---rl-..3 -2e a2czr.t cr -.. . . reducticx, ~nd .';a C~;ECZIS~ t3 s'ich letter is recei-~eci =1 . . CONTXCTC.3 and fssuir;q tazs fr== zke '4I:iISTX'i vithin siv- (60) d~ys aitzr szii deli-rery, then ihe relevznt reauccicn .:.d be effect~d 3y CC!;TXiCTt3's sencizg to t.L= issuing bznk a cc;;.... or' tke la'Lter delivered ta the !. J s. - .;il:ex lls" : Is the fcx of the Charrsr cf the Cperating CcnFany 'Lo >? faxed as ercvit~d f=r in .:rticle 6 cf this P-greenent. Q - Xrlzss "FW: -. Is tke .;ccczntL-g Irccsfxze. ,-, . . . . . - .=r.zsx "G": i .F Is a sa:;le celc~lztic: =f Xov-;-.* _,,,,, ccat 3iL and ?rcCuc=is. - . Sharing Oil. t- r .. firi..,S "3" : , . .. , Is the fcm cf Xeqcesc f:z Conversicn tc~ Developnent Are&/,, q,r 67, 9 , Li :. 3.1. G- : G 4 Tte STAT3 hereby grants to CONTXACTOR end the MINISTRY the ex~l=si\-=~ ripkt to csnduct ?etr3leu=l Operaticns in z2e Agreement Area subject z: tks tec.sf ccvenencs end ccnaiticns set cur in this Agreement. ~k? cc:;X;CTOX, pricr to the establf sL=ent or' Lcke Cperating Ccspany, shal; ccz=xt tke Petroleum Opezacicns zncer tkis Agreement. -4 his .;grtszie.rlr shell 3encefcrth zs%-e,m all tke interests, rights 2z.t .-. oc~:;acFcr".s of the perties herecs, and =!he STATZ shall in its nzz.i-' recsin the title to tSe .igrn-ezient Area. Pxce~t as expressly provided. t. +hzs ...- igresnent, no stkzr rights or pr2:ileges are grznted to th:? CC::Y?-%CTSx zit3 sespect to tke Aqreenenc .=.ear Zetrsleua ~roducei f r=,,j tks .\qraer=s-nc Area, cr 2.1~ ==ker zineral rescozcas in the Agreezfz. :-=a .-, --. 7 - 2.2 es : ikz S~AT~ shall osn ~ne ke r--;-' -..L---=~ - • to tc%e as 2oyalt-y r'zcn t5e t==~: Cr:=e OiL ;rc6cced anb- ravsd -:re- tks- DsvelcFenz. Area Ls) and nct : ; : 2 in Zetr=iacn Cperaticzs zricr to the de&zc=icn of ccst Oil, a nr-& r=zs-.rereble azount cf tr~fe CF1 eq:z1 to tan sercent (10%) or' szch C:L:.-.. . - GI- ccg it tks firs= hrrel rrc5:cei End szvad. frc~ --' Ss-:sLc;zez= Xree(s) sn= z== :sea ix Tecraleczi cetrztiz?.s. --? &i 3 .? Tsrz : TLa -- -..- LC~, cf thLs Xqrssrazt skall Fzclude en Explcratizn 2erioa and ..:. E~-~*tlc;xez= Zsriod 2s fellcxs: ,? G (a) Zx=lcrrticn yerlc5 : nL :..ere shtil be an Initial Zx;lcraticn 2sriod of thirty (30) zcz..::g - >?? "=,- : ~crr~~encing 3 tke SI','ec=i-:e Dc=e ("the Initial Exglc,, L,- 2erlccu); and an ext~zsicr: ;erCod ~f thirty (30) xcnrhs (":kt reqzesc to tke !e disc,-very by drilling cne or ncre t~zraisa veils to detezine whe=kez s~ch disczvery is k-orchy cf Seing develssn. c=z,=ercially, taki;;g into cozsiderzzicn -,,'.,E reccverzble zeserJes azc zl?: C" " .. - : b..=- relevtnt tes.-.z~cc~ a:?d eccz==..iz fattzrs, " kq 1- h"V\ ;"s -- - I ' 1 rfl \ > c.4 TZe CONT?>.CTX shall give a r-ritten notice of a Comercial Discovery ct Oil to tke MINISTRY imeaiately after the discovery is considered =y CC!iEACTCR to be worthy of ccmercial Develo~ment. With respect to a cc-sercizl oil Well drilled after the Exploration Period, CONTXACTCR shzll give such actice cf ~cxercial Discovery of Oil, not later tLaz thir:~ (30) days following che cc=?ieticn cf the third zppraisal sell, or eight (a) JO~~FS :ollo~i~.q tke date of theaisccvery of suc.'. Cc==ercial Oil Well, vhictever is earlier. The CONTRACTOR shall zlsc hz-,;;, ciiigaLiun to cive 2 notice of Cc=ercial Disccvery of 011 aver. if t:-.= iiscsvery vell or yells are not C~~ercial Oil Wells wit3in tis c sf ltconercizl Oil Fell1' if, in rLe CONTT4CTORtS opixica, 2 ressrroir cr a group of reservoirs, considered collectively, ccald 32 ( vcr=kl cf ,_.,ercial ---- Davelcg=ent. Wctice cf a Cczercial Discover1 cf \Oil zzy te qiven ty CC::T?S-CTCR ec any ri=o dzrizg tke Zxplcra=i=z J7ey: -s 2- -- - *U . - TZ= ,C',::T?-:-C=~~ =hell zlso GI"' r.c=ice of c C=zz.ercial Disccvery ci ''1 ,,, # : - --- ;.. ---- ever.- it xistes ta xndert~ke a qzs recycling proj ecc. unless s~ck - r-,;~~t --a- is zi=ez*f a azrt oF t.'.~ 3e-:~lc;~.s.-.= of a lrevicusiy declartl . - .. , Ctzz=src.:z~ Cil 3isccverf. -La ;-- '.i L-.- -,,e cf a ~cmemial Disccvery cf Oil vill be tke ezte cn *;hick Eke C~:::;-:-C.C-CX qives vrit=~n :.c=ise :s =>e VI:;ISTZL cf '-5s decl~re=l=:. f== sxtk ccr:=zr=izl disccver$. 8 $) Fm:? -..;-- --= . - - ---- -- , -:-- notice cf Ezy CszZ.€rcill Di~i=-.'ery if sil ES FrC7L:Za --- i . 2.4 (3) of 'his Acres=~~.=, "5 !q shallgive xrittsn ;cci.=s ~3 tke .XAC .-*v" znd ellcw the CCNTr&C;,.-& accsss -Lo all re1cvzr.t .ta-La to evzlcetle t?.e cpcic2, .as zay be reFesi. ::i by t5e CCNWCTOR. TCe cze kcndrs.5 ;Erces= (100%) ?ajment shzll sot"::. rec=*;ered ty CONT?L..CTCZ. Izisdiately following sac3 pat=on= =he Sole Zisk Area shall either (1) =Even to the stat.2~ cf an or=Fzsry 3~velc~sr.en;: Area - znder this? Aqrternefit tild tkereaftsr sheil te tgcrateci i.? acccrdence with tke ter-&. ."ier=cf; or (2) alterzatkely, Lx the 'cvezc tkat at such tize tk~. X1f:ISTXY cr a third pzrty cr any cf the !-!I!:ZSTXYts Cegencent C~its arF ccztzcting Dovelcp-,ent c;=eratlcr;s in tke Sole Risk Area at its sola: .@ exsense 2nd the :-TINLSTX elects to ccntizue operkting, the Sole Xis.-. Area shall rexain set rside and the CCNT?ACTC3 shil cnly be encitl~s .T:, to its percentase cf tke 2rcQuc-'-- -,,., Sharizg Cil as sgecified in Arg; L-cr2. 7.2 below. The Cr'zCe Oil frcx tke Scle 3isk Area shall be valued in th; zzzzer prcvided in Article 7.3. In the ever.': 3f a;~j teminaticn cf L;?,Lz Xqr~enent xzder 'Lka gr.cvisicns cr' Xrciclt 3.3 (a) cr 3 -3 (b) abcve, thir .iqrse=ent shall, Lov~ver, scr.tizze -a cpfly co the HISISTKit s cgerarizk cf any Sole Risk Frcject. In tke event the COST-EACfCR elects iC pertici~ets in a Sclt . . Xisk Zroject znder %is Article 3.3 tke XINISAL?.Y ... - - make svailabla ~cr izsgec-,i=r: by tke COUTXrCTCX ail bcoks: ,. & zcn-**- t recrts , reccr:',~ znd related EocczientztLon su~porti.lg ::; '.S L:z5red prcent (100%) cf chs ccsss Ir;c:rre.i. !? - FORK ?ROCR3x AND SXFEXDITZ3ZS 3C3IXG TXS ZXPLC?&TION ?ERIC9 L g - tCe Explcration ieriods, includizo any extensicns of suck - -;*,is -s. -- - - , L..e CC:ITZ,,CTCX zqrees anf czzzits ta undertzke in the Xgreenezr' .\rat J. prcyrtx cf Zsplertci~n zczk 2s a =iziz.ux S>:ploratLcn ccmit~e~. "C A, ;;hi=;-: canr,c= =e ck2zqea cr mended ;;itkoee =he a$$r=*~al of the HINISA,7 vhick will not be unreasonably wi*held. 8 During the Initizl Exploration ?eri=d, tke CONTRACTOR shall meet iJ: ?!izi=~x Vork 2nd !-!ini=c= EqendiP:re Obliqction fcr such period 2s 5 ,his Agreemen. In tke evene that the CON^^ fc,--,k in hzex "C" cf ' . .., :i: ti=ely gives tbe requized vrittsn zstice ta the MI!TISTZY to enter *'. -3: i t,'~ Second Explorcticn Zeriod, t5e CGNTFSICTCX shall neet the additic..; :I wcr:y_ 2nd Exgenditxre Cklisaeicn fcr suc5 seriod 2s See Zoreh in Ac- :Il "C" sf this ;.grcezene. The CC!:T?ACTZX shzll kegin t?~, seisnic Frogre;. - nc= Izter than three (3) zczths fr==! the Zffecti*~e Cats. The MINIS"' 3 stall nake rvzilz61e fcr COIXXACTZZts use, free or' charge, all seisnl well and other relevzcc BZt1 in its ~cssession ~ith respect to Xqroemenc Xrez. Tke CCNP-\C:OX skell-.hrve tks rl;kz to uitkdrtw kefzre tke end cf - - . . Izitial Ex?laraticn rerizd, xi =:2s Agrsezec; shll &==' 2 written --=tics cf =zcf? ,xi=kirewal is recei.;ea ty the -en---. -. fr==: tke CC::T?-qC'ZI"3. In =:'.e -, =.., ,..e L-., A,-,,CTS.X ~ic.'?.drcws, kevi . . . . ex;=nded less n e z +zc~~~ re~~ir2d in t5e ~nlc Ex-,Lcraeic,? Zericd, an cscczt el to 5 dir','erc,r,ce becxeen s-3 - 3 nizi-,ur;l cr,ccr,c a=B tke Encunc acr,zlljr scer.~ cn Ex~lcrzcfcn cccivi-.. . . kke ppc"=: shcll 5e ;ex By ,-..A.-.CTt? =2 the :.ill:IfTZ'i at tke tize cf - ..: a, ---s,~.. ex;irzticn -L &I.= a cc c -Lke end cr' k Eecc.'.f Zxplczacicn Teriad shz. .-. . - o=A:;eee tts CCIT?S-C7CX to Fey scz.'. E'efici~zc:~ to the !?I!IISiZY v1z.g t;;= (2) !:gLcrz=i=n Kcrk ;rsqz~x ~44 Z:i~ee fcr z2e .;crtezez= Are= ssr=izg fcrzk =5e 3xslcrs=icn c2eracis: . . xhi=:-. c5e CC:;iZ;CTCX ;rc;sses ta zarry =tlz ccr:.'.; zSe ~nsaizg . , c..-: - . . .. -,-..g eac:? Zxplcrzticn 'ericd, s,cS Xork ;rccrrxs and Scdqets .- ltc;erker szzl~ ze et ~ecss ssfii:iszt to sztisiy CC!IT~ACZCX~S xiaiz.. _. 1 . . . .. . . . . ::xc=k z~d ~.--ezc',it;;rt Ckliqasicn f== =5e -=-- ,,,,ca it CSV€~S, ttkizg i~t: -- c !. 9: f'aczzunt anv-- credits fcr cvctss ;.=zk zr S:.:CBSS exser.ait~res tv '"" --. - -. - :i CC:iRACTCX in' en'y--"Zx?lcrtti=n ;srizl. 4.3 =v-:--~&:~ ,..- --,, c,bn .:dviscr.r Cc:-itLs2: -b r..e Zxplcracicn Kork Zrcqrrx ani Zcdge-c ~2211 Se ==viewed f;y a joi cc==ittee t3 ke gs--"i ,c-,lszea ' ' - * =y !.IC?S k Cc 'ft2r =.. Xf fzctive Sate. This cchittzt, hereizzfter referred ro ss =:l: nEx~lcraeisn i.dviscry Cc--icteew, shall cczsisz ai six (6) :~;$efB LLw3 . . +,-e (3) cl zhcz shall 'ze zc----- - - --,..,ad =y ICC!.:? an5 three (3) ' , CZ::=iCTOX. The ChaF-...rn cf tke Zxalorcticn Adviscry cormittee slicl- ie 2esigzzted by ?!OK2 frcx anczg =he rier=ers appoizted SY it. Sscraezry cz' t2e Exylcrrcisn Ad.~isary Cc::itt== shall be appcizteci =kt c'C.'IT?GCTZ3 frcx acc.zrj tho, xctfrs .Zp~=i.t==d ky it. The Ex~lcrazl,. ;.d-~ircrf Cczittze shall review and give such advice as it dee, a~~rcpriate with respecc to the PrcPosed Fork lrcgrzm and Suagec. Follcving review by the Exploration Advisory Ccmmittee, the CONTRAczc shall make such zevisicns as he thinks appropriate and submit th Sqloration Work Progran and Budgat to MOKR fcr its approval. Follcwin, such apprcval, the CONTXACTOR shall not scSstzntizlly revise or aociiq sai4 Work ?rc~rzx end 3uccet -dithout the e~proval cf the MINISTRY. 4. The CONTIWCTOX shail aevtnce all zecessar; fends Zsr all materiels eqzi-,-,enr, suy;gli~s, aerscznel aL=inistrazlsn snd cperatf ons to she Z~lcraticn YGrk lrogrz~ and Budget and XOMR shall 3ct -: reslonsible to bezr sr repay any of "he afcresaid csscs. The CONT?ACZC: shall be respcr;si?Ie fcr the gregarztl:n and perr'czxance of -La E~lcrztisn Kork ;r=;rtx End 3uc:ec ;hick shzll ke isgiexentee 13 ,;. wor:!anlike nanner and in acccr=ance i gc~d 2etroleuia Indcs=r$. ?r=ctFces. Tke CC:ITF~-CTCX shzll entrdst tke zcnzge=szz of Zx;lcrzrisn cgerztizz . . .. t.'e 30y to its racz.-.rczLly c=zpecsnc Iez..ersl :.:znzcer and 3e~z= Gszerzl Kznzger. lke zrze cP szck Canerel !' receiving ~ech Stncezent. j! .. d . . Xithin the three (3) !<~zcZs frcz skt dzce =f r=celv:ng such Sta=elez -kS -..- uT3v- ..-.,-S:ZY shall a?~ise the CC!:Y?-:.CTCZ i.-. xritiz? if it ccxsiders (2) tkat the ccsts cf qczds cr services su~plied in 30Y are not in IF$ with the-interxazional a pis fcr qcocs or services s: siziler ~~ality sc;;lled cn sixilar t~x.s grevailing at the r5:! such ;ooes sz ssr.*ices Yerz scpy?isi, ~rcvi'ed bcxever, :?.ij gurc2ases aade and senices ~erfc~ea xithin SOY shall be suSfec- to Xrzicle 26.2 cf =his Agreecenr: cr ' 1 I (c) thar the condition or' the =aterials fur;lished by CONTRACTCR CG.,. If vithin such t.)lree (3) monc:? 2eriod, MINISTXY has not advised 4% CONTRACTOR of its objection =o any item in such Statement, su8- statemenr: shall be considered as having received prelinin approval. If within such geriod MINIST2Y does advise 5 CONTXACTOX of its objeccicn to any such item the Parties shal attemcr: to rezcn a solucisn for such item which is nutca satisfactsrj, either' by tke~selves cr with the assistznce independent e~ercs, buc the re3aincer of the Statemenr: shzll ccnsidered zs zccrcved. ~ke CCNT~~CZZX shall ccr.r^zr ;-it:? Jr.2 in ccznec=lcn ~ich zny crc3" 3 t.",xs sres~zttd, arrd t.",e ?arci=s kareco =:?ail atzez.pt co reec;? . - se=slesent ~hich is ziucxally szz:s=cctory. r$ At G.e end cf tke Initis1 Zz:;lcr=ticn 7eriod the CGNTXCTCX sk . (t) La.-- - r relinq~ish a tctal of - percsnc (30%) of he Acrreenant Area Zrovieed ttzz i2 crigi; the CC:ii32-CTCi? do~s noc elect.' d - - ante= izto tke E~cczci Ex;lsztri=z reris5 cr zke extezsica see fcri i ;rr=itle 3.3. (a) , . then =:le COT2 skall reliz~~ish . . rezaizcer of the cr~5:zel Xgrsezenz Xrsa zcz =ken cczvercea t 3evelcz=ent Ars2 cr 3~velc;=r:= Xrees. (b\ .;t zke 2nd cr' tke Secczc Sx;l=rztizr: zsriz.5, the CC.VT3S-CTCR shz$:. a -eliaqxisn clle vhcle cf =ke X.;z~eze:t. Xrea zcc rken ccnvertea .. - a Develc~:enc Xrea, zrcvid~i r:ltt the CO."iT=CTCX ;ill relinq~ir .- . b L..e h uhole A~ree~ent Area, 1=. =z.-.e,rise, the CCXTTG-CTZR has acc : any Ccz=ercial 3iscc-:er:*. - - .- - - 3. L i-c,:=terf .-..elir.clliskzer.ts. -L 2 C aay voiur.rzrily rei all cr any ?art cf 3- .;qre~zien= Area sc=j ec= ts F~lfilliz g all or' its cbligztlons uric, ,,,,,,e % y-; -1 4.1 of this Agreezent. Any vclczrary relinq?~ickxent shall tt . . crt-itea tc-,,-ard t.1~ ---s-- ...c,,-GLcr'y reli~~~~s~zezzs req~irea ucer Article t=c-:a. ,.. .. .. - .... . . >, 3 3s.r~; rezents fcr =eli-ni=i- ,..... S?.~S. .... -1. r..e ;ise ir.5 shepe ct the reiizq~ist-ants zada u.-.der =>is re ke tetecized by xutssl acrse!ze=r; srcvidad tkac., unless cckeriz- . . aqrsad, all areas relizq~ished skzll, at a z:arz:x, be ccntiqdcus EZ- retscnzbly accassible for, anci ta~able cf, ftlztker Zxplcrzcicn 1' 3e\'eio~zenc. Any Fart cf t?.e .:gree=..enc Xrza shall be ccnsidered subj to relinquishiient, including any such part ccrrespcnaing to a geologi in unich 3etrslecx zey ke ;resent zr has teen deterxined to 5 fety~re -:$> ---c=-~c af--- ' 41- i ----= . ,=, cr,,~-ncj 1 el; ;r=vided thee, zct-iithstenaing ?cregoinp, ',e CC!J=\CTCRshail zoc be cbiiged +a relinquish any I;& of the Agreement Area corres~;cnaiz~ to a Csvelcezent Area(s) or 20 Zk scrfzce srez of my geological fscrzre ix yhich a ccczercial Oil Kef; f=ss =een eszeblisked, unless the tize ;rcvid€a for nt least thirty (30) days ~rior to tke date of eech relinquishaent, tkq CCNT3ACTOR shall sutzit to the !ffNISTEi'l a report of its ccmpletek zxgicraticn ac=ivities ~3 rke area FZC;csea to be relinquished 2nd tk! ccordinates cf tke cczzectFzg poiz=s or' tke koundzry line of suc;? are259 (a) Zpon a Ccmercial 9iscc-req or' Oil, !%!a and the CONTMCTCR skeliLi ?om in t5e ROY an werating Cczcany ;.hit:? shall be nzned ty xur~z: Agreere.?= ,"ec;san !/C:.L.3 end CZ::T?-XTC?. Zle C;~rarir;g czzpany shz ;,, be smjecr to ;rcvisicr;s tf =:'.is X,-reszxzn': znci the C."iar':er ,-h Gperzttng Ccz~tzy. 3 (5) The fc-m of the C2~zter ef Czsrrsing Ccxytny is heretc ~ttzc3ea.t Annex IfSff. a. Kitkin thirqIr (20) 5ays az'iar =ke date of the fi::.? Ccmercizl Disccver-7 cf Oil ike C.L.zr=tr skall be ccnpleted ':.:.. sigcei Sy t5a !.'I!elf and tke oecszd hsl? sf the succeedina Xcz-& . exprsssea i.3 in:;zd States Zci?ars havi-3 re:erd to iLe ~s;rcs.e::j . - 3ucger. SZC? os=lz.zte ~3211 take Lnrz ccr.s~zeracicn a:y ceg. exl;ec-,zd to =e cz~ hzd at :-:c.?=:?, end. ,7a>x~nz Zzr the a~;r:gris'c: 7ericd or' szck :/czrh sf;alL 5e xeCe =o tte 5znk designccea -?$ Article 6.1(h) 5elcv cn the first jist) day and the fiZtee?.<.j n h (15tk) day respectiveiy, cr -' -..e :ex= Scllc;;i,-.g bxsiiless iay, 1: such Cey is xct a tzsizess Sty. ?.> :: 5 (5) The O_ceraci.-.g Ccz;=ny is ac=5=rired =a :.-.eep a.r: its cxn dis;csSJ tbrcad in en ECC=-L% sr accczzrs ccez~i xi=k en izterzzcic~zl 2e:I or kezks reascza=ly zccectakle to tke Central Sank of Yexen, =:% f oreiqn funds advancsd by tkc CO:lT?S.C:t3. 'w'itkdr~yals s'rzx sa :- accsa:= shzll Se xsed fcr Fz:=efic fc= ~cc5s and services zcq:?irrr fcr --=-s=-r-- ---.. -=--La.* -- =a ~OCZL ~ZZ~S abr=es 2nd . .. in soy the ZSG~Z+:!, anour;zs to ,€€t EY-enbitxres 13 rezezi =xr==ncy cF Eke @;erttfr-!: 'I ... Ccz~czy in cc~zsct~cn zit3 irs acclv==ss cz=er =his ~~reezen;-a \- .. .. .. ti: The Cceretizg Ccz;tzy sktll ksve the ri~i=t to const?:ct end =?err- - faciiities fcr tka crznspcr=, szcrags an5 shipzenr of =err=la:.x -$I the ZCY, zi k I skall rrz5tr rll tssista:cn =a :kc 3 Cperatizg Ccz;tzy cn zatters izvo1vi:q YExSY lav. h 'L . I. (f; If, Ccrizg '124 te3 cf this XGrfenenz, CC::T?..CTCR 2nd tke !.CISIfT:bj agree that =ke Ccerztixg Cc=;zny hes zo fsreseczble need fcr pcr: Crude Oil szcrzge 73 or all of tSe unused cepacity cf a pi~eiine, sxpcr: ter,i.-,al Eccility fc~i-7 ;ar= =f ?rtrcleun Cgerctiszs, z:d -bat in CON=.CTCXts api~itn sucfi ct~ecity can be used f-- operetions ccncucted by the XISISTXY ar znyone ac~ing on hehalf =: the XIYISTXY, i.-.cladi?.q perszzs hevizg rl~kts under azy c=k~-:'? Proetleticn Skzrlzg Xqreerner.=s in 'ISKEN, yithout interferhq 2ir.j CONTCTORt s and the !!INISTXY ' s operztions under this ~gree~e~e. I . \. 1s ."Pi.. . i: . ,.'.-A I. C .) I. - ! . . IG Y @-"J- ts A- . I and if the MINISTilY deternines a need for such part or all of suc.:; b umed capacity fcr such oparrrions i~ YZYES, then the MTNImY shai? so aavise cGNTRACMR, and the KINISTXY and CONTRACTOR shall meet tz- negotiate mrtudlly satisfackry tenus mering such use. The terzs fez? the use of the cbove-rrrenticned facilities shall include reasonzblc, papent !zy the user, lkitzticrs on tte period and extent of such use, ard pision for am by =be user cr' t? ccsts ard W-n- ty r-&son of sucb &e, grcvidd alb=ys 2-t t??e GpxatL,ng cmgmy shall hzve cricriq to cse rke &me-zenticzei fzcilf ties fcr the ~etrzle-k' . . ~f CONFACTCX should deterziize 2nd edtrise the MIYIST3Y thzt =:k$i qerating Ccz~zny needs :art =r all of the unused capacity in a =i?elir;e, Cr2Ze Oil storzqe sr eqcr': ta-nizzl fzcility in 'I'EXE:Q ->hich is not sujject 23 this Aqreo-men=, =he !.II!:ISTXY shall, to 'L-3': L-.r' - Y b enenr ~32~ it k2s c!!e rignc =o do sc, cizuse such cnused cepeciry to be szde availzble for the Cseratizc; C=zpznyls use fzr etr=l=::: .,k Cseraticns on nur~ally satFs2=cz=r;r =s-T.s, izcluding reascna~~.,::, gz~enc fcr such use. t% Szbj~c-, to tka auditkg ;reqrisicr.s z.-.=er =2is Agreelenr, the CC:lT?$.CTZ?. -. =-.d e\----r'; '..-a .8-q skai, reccver all czsts, ex;ezses ,., . s izc~rre? 2cr zi, 3 Za---. , .L :; l leu^ C;eracicr.s ccr er' 2r.d t= =ke extt== of a z.;axisox of t;;enc-,'.& fi-;2 zercent (25%) ser Ccarcer of all tke Cz-ie Oil ;ro!%ce.i tr,= S=-"-E= f=== =ke Aqreenent Xrea and zct csed ia 2ezzzleux Caerztions and =f=z@ Scytlt-( pa>:encs to tCe STXTS acc=rdinq YO Article 3.2 cf "'':I baa-.. id Xqrcczent. Such Crdde' Oil is hereizafter reZerrea to as IfCcst ailff. A11 scch ccsts, expeases and expezZi2:res eLall --. ke reccvered frcx Ccsz oil ix the followi~g zzazer: 'Y ,4- ... (a) ccerztina Excenssc izccrred and ?aid after the Czts ef zit?-:'::-. . . .. . Csxaercisl ?rc&:c=i=n shall be recct-err=la in =ke l~x Vezr iz k-h~... such ccscs 2nd expzzses ere izzcrred EZ= gziZ. (5) ZmLcrz=ic?~ Zxze??dit':res iric1~9ing, kt 2ct lixitei to t5csr zccu=.~ic=ed zricr ro the ctzzencerent cf Initial ~c:zerciz~ cf tvency-fi-.-e Fercer.d ?roduc=icn shall be reccverzbls at the rzte (25%) zaxisun per Yezr starting eitker in eke Tzx Year in uhicr. .such experrditures are inczrrad znd ;siZ or =ke Tex Year in xhic:?, ickever Is '; ~-,e laze=. j Zcitisl Ccziercizl 'rcdcccisn ctzmerxes, xh (c; 3eveIccaer?r Z>r=.'e?~l=2re~, c.. , dr .," A,,, -,, -- --- - accmulated xior to 3 czzencenent of Initial Cc;~slerciz,B lroduction shhll be reccverzble at the rate of twenty-five percer..s (25%) maxinun per Year stanixg in the Tax Year in vhich suck expenditzres are inc~rred and ~aid or the Tax Year in which Initis Commercial Production commences, whic3ever is the later. (d) ff all costs, exFenses and ~x;o,nai?~res that are reccvereble in zny Quae+r, inclxdinq, bcc ZCr lizited =of such ccs+s, expenses 2x9 expenditures carrled fowara from previous Quarters pursuant :i$ this paragrech (d) , exceed t:7e valce cf the raxi=um anou~t sf Ccs, (nXcxi3ru Cost. OilN) thet cen be taken ty CONTRACTOR in szc? Oil Quarter. cs prcvided in Ar-icle 7.1.1. above then the uarecover.3 excess anount shall Se czrrisa fordarci for reccvery in the >ex@ succeedizg Ccarter cr Quarters cntil fully recovered, but in :c case sbzll they be recovered after the teninaticn of =hi,*) Agreement . iiovever, if snck recc~trz5le cests, ex~enses tz~~j . expenditxres Ere less tkan Zk= valce cr' the 'Vzxixun Cosz 3i1, the vaize cf tCe Crde Cil rake2 es Ccst Cil Sy CONT?S.,CTCR sbal' te equzl to sqch reccvereble CZS-S, eqenses tnd expendit-res. -, 3 d'if2ere.n.c~ tec;;een t2e Vzxiz~zi Czsc Cil. and the Cos= Oil act-:rll- taken =? CC::PACC3 Zurisg szck Quzrtar shzil ke included in zkt r'roducticn Sharing Oil and teken end cis~osed of sepzretely k.j XINISES and CCST-XiC:C3 ;ursueat to Xticle 7.2 below. . . .. .. -- - . . .. i .,.; & Ccsto~ ~Zditi=n t3 eny ZC:~ reccverzbie csrzs ~:d ~x;sndi'..-res ;rtvidad fcr in =kis . . t:te ~nZzr :enticzed ces=s ax- & cr .;;:=X 11:" cf ~2~s Agree--- -...sl,~, expexsEs tro .:== zec:-i'erable Ex3 CCSZ 2il cz c=:?e,r;;ise x:Zer =.?is Xgreczxzzz :- +.+ : $ kgrsezent Xree. < g 3. E.~er?ses incarrei, paid, end czrrizd f=,--ard, _srFsr to ...-- Effeczive 3ate cf =his .%qr+erien=. . L 4. Taxes in Y'vt:r cr in ctker cczztries except as s-,eci~i=a-~&i *- . , prcvided for ix ckis Agrsszenr. .. ,- 5. Zonuses said ta the .STATZ. 7. Interest, fees and coixnissions on loans and guarantees. '14 a. Expenses or payments for education and training pursuant tc.i this Agreernenr, except for costs and expenses for trainizg sf ROY employees of CONTXCTOZ and ROY employees of the operacism Cca~any srcvided such cssts and sxpenses are included in er; appoved iiork Program and 3udgec. .. 1 9. 9 Sqenses ixcurred ~nd ;aid for tke carketing of Agreenient Area Tetro1eu.x outside Y2EN anci the ccst of trznsportinq, stcrizg,;B handling and expcrzinq cf Setroleun teyona the point of expcrz in YEAEN. 7 10. Foreign exckcnge lcsses. -3 ~r.2 Cyzde cil reztizFz= 2fL=- ,,- 6e+-'-';- -. ---,,..g ..-.c~aity - EZ~ COS= Oil ~ZCX -26 - tczzl C,~de Oil ;rc+~cea en3 szved 233 c:^,o, .:.greemene Area, and ;;GC In ;etroleua Operacicns, shall 5e ttken and dispcsed cf separately, cka XINISWf and CCNT.%CTCR in acczrdance with ttt sample calcal~t:zx iz Xznex "G" and as follcvs : LL (1) Tcr b.2 por=icn cr iscre=er.r of $roc-cticn 2p to and incl.'dl.-.$ (25, t 0a: 3+rr=ls =r' Xczckly Aver~ge Zaaily :;er -Lwenty-f PJ~ tks'~szzd ?rodaczion: H i Y seventy-seven lerc=n= (775) ts Xinistry 2nd tvency-Ciree aercar.= (21%) t3 CC"")' .i 1 - ---L "-" - L3 . 2 g (k) ?or tk2t edditle~ai ;c--:- ,L--n cr incrtzen-, tr' procrrctif.? ~-2ic?&d exceeds t7er.cy-f2.-e =.",ccszzd (25,003) Sarrels of Xonchly As.era~= Daily Set ?rcCccsf=n up to 2nd inclxdlzg fif:? tkcusand (53,SCO;$$ 3arrels cf Mc.?c;?ly Avezege Daily Net ?roducci=n: ,;> r g seve~ty-xlne ;ercszt (74 2) 2,- !C!JIS,'i'r' and .ca L ... , Luent','-cne perccn= (210 ) =o tC!\'TZ-CTC-3 i' '-. ii .... . ... . (c! ?or tkat ~~CLZLC:~~ ~crtiz.7 sr izcrazent 2 grocucticn ynL--7 exceeds fifyy tkc';se:= . - (5#3,220) 3arrrls cf I.:cztkl;r Averace I=2i1:& Net ~rcducticn cp to cna i~cl:ding se;-ency-iiv.-e thocsand (73, SZG 74 3arxels cf I: -C :r .I :> .I :. , . . .- ro * I ;T , ;.. .. J . . bL (c) For &.,ex aadcitF=nal _=crzicn sr ir.craaent of producticn ~hlc. exceeds sevenri-f i*;e chczsand (75, COO) Iarrels of Xonthly Averog I Daily Net Proauccion cp to and inclxaing one hundred tkccsanc (100,000) Sarrels cf :fcnzSly A-~erage Daily Xet Producticn: W eighty-three percenr (83%) to MINISnY and seventeen percent ( If %) to CCNTX'CTC3. 'P (e) For that additional porcicn or increment of groaucticn xnicd exceeds one kznarea tkousana (100,000) 3arrels of Zonthly AvercqE 9ail.j I:E~ Ircdccticn a? to 2nd i.7cl:ding cne hundred end --- 52rrels of UoZi-hly &verage Daily Net tkoue~,?a (150,000) eic;kty-r'ive ~ercent {as%) to WII:ISTZY 2nd fiftsen perc~nt (152) to CC!;T?"CTCX. (f) For tkac a2ditis~al pcrtlcx er ce of prociaction ~hic' sxceeds cna. .&vereSe thcusand (230, COG) eight-f-sever! ~errszr (27%) "La Xl!;ISI?..'I znd -.---* *m- thirteen perceat (13 2) to Ck., i:---Ci -3. . . =Cc;c- -r ----=-=-- . . :s: For tk2t eccitiezcl , ,,,., -- 1..- -,... ,.., =f 2rcdcctlsn B i exceeds t;-o hu-dred ;kksar.~ (223, CC;) s 02 Vonthly AverzJ 3aily Set Trsf:s=rtz. vTl;-""' --- ni~ety sercerit (902) to ..,. A=,.,: =..: ten gercent (10%) =o CCSi,2AC?C3.. - , ::=l==-f cz ci Cr!~de Oil : ?$ ; 4 - & @ 1. AL is eke Izt~:;: cf :?e ?artit-s :?at 2:e vai2.e cf tke Ccst Oil (e ... CC:;T?S.CTOXf s Zrcdcczics Sharlq Oil 9cr r2s ;cr?ose cf 3CY Zzcczc ?exes es - ===vided ;x -.r-G-i e 9*1(~) bel~v) shall reflect ~3 -- - ,,~vaillr.g zarket rric~ fcr Cr~te ZiL. rcr. tke ~cr~c-ee ?: svalctcizg tke ;rsvaiiizg zarket vel:~ cr' t:?e -entity of Ccs': 3i- to xhich the CC:;TZ=-CZCX is er.zisled kersur;cer Zurizg each Calencg~ . .- .;; .$ Qucrtsr, the veigh=ia svarrqe ;rice rsziizea is freely converFl&-d currorrcy, frcx T.0.3. 33il.t cf ex;cr': sties to non-Affll~a-. ,-. ?II!JIS=Y or the CC::I?.\CYf3 cr.5er all sxch Cr2Ze Oil sales af r Xgre~zeat Area Cr:te Oil tke3 f.? efzsct, kt excfrzcing CrzZe C sales tcntrtcts iz-:cl;rizg karzrr, v;7Fc:?ever is higher, sk211 f r xed. lrlces shell >e a~;re;rf=tely aa'l-c- ,,,,cia - zo ' credit texas. Q . . if - - .a sroviding fcr ;ak"enc xizkix zkirt.1 (20) lays from the date cf hi-- of lading. ~zrrencies other than United Stctes Dollars shall te ccnverted into linited Staces Dollars at the rate for buying United States D011zrs it such clrrencies as quoted by Naticzzli iiescxinster 3cak TIC, Londca, at 10:11 a.m. London the, cn i.2~ bill of lcdi-3 iace for 2r.y such sales, and if this is r,cc 2~ banking Czy ix Lcnccn, cn cite nexc sccceeding 3ankir.g day izjr Londcn. J . . It is :;ldersr==z zhzc ia eke case c5 C. I.?. sales, Ceduc - ;rise tl -La baa --L.IS '8-= --.* AS: zzc CC!;~?-~CYCX. W X :: At 1 reascr.cZle =ize ;zicr Ca tLe c=~er.cc~.~zc 15 Initial Cc--5--'= . & - ---.- i- C--i.-' C-"tll =.-i-;- i-- be. 4, - ---, ,-,n, L..e l,_,s;;L-..q r-...=--., -.. -- ...-, -,- csnsiderzcicn ';a --. . ---- ---!I CC:;Z-\CTCR 2nd tts HIYISrsr a ~rcceCzre 5:- sc.'.=&.'lizg tznker lifti-75 =--- --- ;-,.., che agreed :;oz aoin:(s) ;f erzcrt =..; shzll -. zegc=iria vi-3 -2s :; and CC::i?"\C=CX acct~=cble ;rcvisioxs . . e CJ cnderLiftiz:?T ; ,. - .gj e~f ;~erlittk.iq-=s p5=5.~c%i3rj.,.. S.1~3 prty:s:ozs strll inclcde ?or-,, . -.--A . i. 2nd lees', ct~t;e-erly se-,rle-er.= ;f ~vezlifts BT.~ .-nder11~~.s- 12 CS :... . ,,-,.----.. - - c= in kind at eke t-,=ltr! cf =.-;e :.A..L:LSZ. , . 2 : r-,-,321 ?arc>ac= ci Cr22e Cil 2.e .u.IBISTS~ shall 2rve it= cg-iicn, to be esescisea :?on et l€est zi.-.e+4 -@ (SO) days norice =a CO?TiT;;.CTCR, ta snrchese :=ox CCSTS-CTOX C? to fif-" Fercznt ( 50%) of cc:e ?rctcctic:! dhcriag Oil p~rckesed fy the WINISTXY sh~l., 9.- ---. m,.--. . .$,$ be 2s 3ue:ally E~ZZE~ "y tie X1r;:;ai and =he Cb.h~~-m2. If 10 . .' .t) / .! G id .r. aqroo,nent is reach~i =hen she :rice apzlied snall be the weis;?te: B averzge pries by CC:IT~CZOR fcr :ts sales to non-Affi1iair' Cc=;enies as calculated in Article 7.3.1. above during the appliceblq Quaxer. ~f there have been no such sales then the price reached undez/.f Ar=F=le 7.3 fcr the a~giicajle Quzrzer shall agply. ? ~11 yrckases by the XINIST3Y purscant to this ozticn shall be cn cre6:- ' -- Id t~,--,s srovicing 2o.r salzenr virkix thirty (30) days frcx the bill z= &=zker s;?i;=lencs, 2nd. frcx invoice date fzr Izdizgdzte Icr sales ty -' ~-b. &,.er sales. q & 7. .j zr-2.. ----,ctlan - ~creczst : . m T.Z~ ~perati-g c;zpcr,y sball ;repzre end fzr-ish to CGXTXXTCiL 2nd t.'.~i y a Yearly ;rz2cticn fcrecest re;rrt se" LCi~g out the tc==i- a~r.-.tity(ies) of t5e Perrclet2x ttz': re C~;~racizg Ccxpany esti3aczs ctr. be rroduced, saved, and traxsscrt~5 eccsr=icg ta =?is X~reement ~=rl:z?! f- .-- a Year e3d cuartzrly iz acc=rtzr;ce vi=:7 scc5 ?=tr.clecx ~cdc-c=riz =rz==:ces. F- - Tt-= ~:~~~zti_~ C~y,sazy ~ktll ::=s its =fP---- -- - ---,- -s == ~=:-r?duce -=.'.= f 31P-C2{# .... q~:~zsiVy cf szch Qzcrser, zs c~5c3zi frtzi =ize z3 =ke. 2s "eratlr.7 Cczsany skeil, in ece=rZance ~ith z=ci Io,tz=le~x l:ixstzl'~ --- --; ,-;-,,ces, stzre tke Cr2a 3il in st=ztza tazks cc-s---• .. &,,c-Lei e-fd rr.ei,=ai~ed ky the Ogerzti~g Ccz;arry in =:le .\qreezenc Area = e~c;? - ;e-e ;~+=olezz ~-SF=-; a CC::=\CZOX in ccz.';~r~i=r: "' -' ,,,,,,,ns czrried cc= tk- the i r e i Ccz.=a:': - - in ~ccczd~nce ~ifh L Lcllowing: (1) Laxd shall Seccze f::e ;rc;r,rr',' cf ",ks !?I!:ISTXf as sccn as it is j-zc>+sed cr ottrir.eri, szb j ec+ to CCSiXAC7CR1 s use, f re.. of --..-'* .. . j$ cr sexes of 2cy . s> The book valce of scck assets ix eac:? C21e.r;ezr Qcerter snzll '-- -% cc=.=cnicated Sy 'he CCNT3dCTCiZ end tke Operacing Coapzny as applice4L1:,:: . . ..; . , to the XINISTX~ witkin =hirY1- (30) days afttr the end of each Calendzkz GusA--er. -,---. q 2.2 ~crir;g the ten of this .\qrc,ez.c.-.t, =he C.-..-----.CTS3 as QFeratcr 5ef=r+g f=r,aticn of tke erg Cc an5 e C;erccizg Cczpany ZZE -. er.ti-,1.=d to the fcll Zce cf all =I>:& sc5 ,=-.*t=lr, 2ssess referrei r- atcve in conzecticn vith the ietr=lc-a Gperz=iozs kereuncer or under : @ ctktr Petrolem O~eratisn entered i:=o 3y =ke ?~r=i=s. The CCNTXAC:,'; . . 2r.d 'he Cperatixg Cc=~z.?y shall 3ct iicpcse zf tks cane exceFc with =.--.u L." ,--,en : - ay_=rcval cf r:le !.:I!:I,C?ZX, sx5 e?;r=-:'l ;;ill r!ac be ur,zeascn+=lq ..: -.--- A -.-.e~d. :; ,? .k& a. 2 Tke CO:ITX\C=OX and tke Qpereting Crz.?eTj zcy freely izpcrt into tke ?.3? EZ? cse tkerein tad frgely ex?tr= rr =he er5 sf c~eh xse, zitcklnerg r~:? : :. eq:l;xent xhic;? t:tey elzker rezt : lezss isl zcccrdance vita qczU -. . 2~rraleux Iz+!s=ry ;rzc=ices Fncl-tizg 8c= zz= ~:=zsed to tke letsi:; cf =czguter Sardvere tad scftvare. P-, .I) , , ,. , ... ARTICLS 9 ~4 TAXES 3x9 SCSUSZS :? ,1 9.1. (a) CCT =ha11 szy a fixed ;er=azrace =tx ("fixed tax",;-z equivalent to tkree 2srcnzr (31) 2 211 its 2x~lczzc:.-" : a E~enditcres ixczrred i 5 ir! ccr.ecctlng its ?ec=al-. -. C;eratitas. ">is flxeci tax ski1 ke ;sici -..-i-,:lln three (3). XczCc.. - after tke Ttx Yetr Fa 'n-hich tke ralevz:= Ex;lcrzticn rx;endi2crz,~ ara Izc:rred ~25 zal5. Suc? ;r)=enss ~2211 ts ziade =o tke ZCY authcri~ies and shell 5e acc=:paniea ty scasazents aut5enticzse= by the !.II!JISI3Y sestizg cut =?a zelet.t:= Ex;lcrscicn Sxpendit'~zc,f,- I. k'i-in one hundrei and fift-,- (130) days eft== tke end of each Tz:; i Year fcr vnlcS t3ls fixed tzx is paid, =he XZSISTXY shall fcrzis+ to CONTXCZGR official receigrs evilezcl~g tke paynent of such =EX. *. ? ) Zx~atriate ex;loyees of CC!:e=;= frcx all persczal inccze tzxes ani sizilar rases in =he o cn all inccxe 2- reizkursenents ;a i5 Sy CC::T?.ACTCX the Cperztixg coxpany , an8 zkei - - / !. i2 + -. - 4 .' . ,\ subccntrzcrcrs cnd cx all icczze frzz any sources outside of =kt& ZOY. ~ll non-3OY cczzrzcczrs and sukc=zcrzc=zrs of CON~CTG;Z ar.d Operating Ccspany shail exenpr r'ron all taxes whatsoeve? aeasured by inccze, srofit turnover cr othewise with respecc t:zi all paynents xaae to them CONTRACTOR and Operating Company fcr ser~ices , equir:enz rnd cerials jrsvided in the letr3leu; -- Operzticns cncer =>is Agreezenr. ri 9.1. (c) Inccze Tax a ?y . , ay and all taxes t3 ;;hi& CCII'TIZACTC2 is subject ancer the lcvs c::.:. .Q.i the -SOY that are seasured Sy inccze, prcr'it or turnover are hereinaftzr rer'errsd t3 as llXG'f Iaccze Taxesn. For =e pu~ose -= . -.m 2OY Incczle Taxes, the total taxable inccme of CONT,XACTO~ zit::.:$ respect to any lax Year shail be en arcunt czlculaced es fcllzk-g.4 i q . The total valce (d~te~ined es cr=-;ided in Article 7.3 e=~ve)..>$ &I of all Crdte Oil recei-;ed ky CC:;T?S.CTCX in sac3 Tax Yc-ar . - - pZrSC2hK to .;rtrc~e 4, less e ccszs end excesses zf CC:JTaCTCX ;:hick rre reczvered ky CCNTZ:.CTCX in the Tax Y:. '8 under Arcicle 7.1.1; 212s --.. - -:.% ii. Pa anccnt c,,~al to CO!~TF>CZC~~ s ,-..i/: ~cczzo Taxes. 3 -. ., -L ~r the sctal val~e =? szch Cr,ee Cil r~cei-.-ei S > &.+' C@N=CTCX as s~z czc in =>is -%.rticle 5.1. (c) Fn any lax --*a=- ---- - - < i. akcve is eq..al == zero, than CC::TZCTCX shall :c= be r~q~Fre5 t3 ay any SOY I:C-=? - ... -.<: .: .. :' .I Taxes fcr suck ?EX :~er. . .. ;2; T IS :;ell ass:z.e, ;~y :.-.a clst;tarse cn behalf =f~~ CCNTX~CTGX, CC!:" A~--.~ACZ1~ ' '" G IZCZZ,~ Taxes cut cf 'L~,:. ----. , MIXISi3Y1s sh~rt c2 ;e=z=leua czZsr this Agrecae~z. .,; .-q Within cze and hur.Cred flf* (IS"; 5eys aZtar the end cf uec.,:; . -:: Tax Year, the XI!;ISI3Y =hail fzrzish ro CC::TXCCX cf2ic~zkd receipts evizencing thz ;ayixezr af CCSTX=-CT3Rts 30Y Inccz.e Taxes fcr sue:: Tax Yaar. Scch rztei;ts shall be issued S'J t.L.c-.< praper tax z~c5crities zzd shall scars =he aniotict and particulars czs=zziary f=r scch rzcsi~ts. =I* tx 9.1. ;f) In calculati.'.; its Z0':: I.-.c=~e :z>:c,s, t>= !<~!:~s~yi sh=ll .. ., -. e~~itled 23 =e=xt= the zcy Icc=,t 'raj:es cf CC~TT>-C=CX -2 =--b. + i :.: -2k.b the !~I!JIST~'I: cn CC::~?~.~~CX s ~~221 f . , - 9.1. ;;) The COCT=CTC3, its f Czzzanies and tksi:' sukcontractzrs End s?ers=izg Cczzrny and it's sub-ccatrsc==rs- are exenFt frzx all of =he taxss and related raxes of a::? -. nardre ;:hecscever zith =he excecsicn of the rlxed tax ts' stated in Article 9.1.(=) and =ke 2OY taczxe Taxes as strce5, in Article 9.1. (c) tbcve. i; . I, /- ?.1.(>) "axes Stzrer!azrs 0 S1 CONTRACTOR ,ci;all rcs-ite rhe s=ezeaen=s cc.lcerzing the calc!21atft: of the fixed tax scared i.l Arzicle 9.1. (a) above within thirzy (3 days after each (;.;arrer ccme~cing after the Effective Date of Agreement, and shall 2rcvide stztements concerning the ROY Inccze Taxes accardizg co Arcicle 9.1. (c) i. abcve witllin thirty (30) dey. after each Tax ?ear cczae?.cir.g after Initial Cccnercial ProZxc=i=z3 9.2 Bonuses: 9.2. (c) Sicnatxre 3~:"s: c0NT"nCTOR shall ;itkin ren (10) cays frx tke Effective to tle MINISTZI as a signzrzre boxs the su=l of United States 9cllars (U.S.S. 7,000,000). CCNPACTOX shall ;ay to tks XI11IISY3'i the fallcxizg _~rc"~'c-'-- -- ___.. bcnuses. Tke ~t2t-s -= ,, ---".---'- ,,--,,,-, 3 szecl2isa kelcw shall nct ir;cl::'m zrod~ction frsa a~y scie risk ~rcjec-- = of cis : '-q =f 3 r-^"" =3 -...a 2-4 11 * ?- .-;cr: cszpiezi -.-- ------a. -- c-, el , the Opere- : - -L Ccz;=ny shail ini~x eni repcrt =o ... e !- fc,~.s prcvided fcr thzz puqose. X repcrt to thac effect zuss z>& .!I sckitted Caily. Czily cr veekly sretiscics regzr9ing the ;rc . . SyS .ZeV3 F.:.EG';f>-Tf OSS . . 16.2 . fl Zxcegt fcz vhzt is prcvieei fcr in -': -.*AS >-~z=e~azt, , the CC:?T%.CTCR ~i.i ; .Ah= . . Cperatiaq Cczzzny shall te SC=;EC-, == all tte laws of YE2<5:; zzk,? rerzlzt isns issued for tke i=;ler,ez=zricz =kerecZ, inclcding, vithczz --Lo sac--.- , -. li=ritttion,. cny raq~lz'.,i=r.s fcr -..- '--L~, kealth, lzbcr and affi=L~-z': erfs=ance or' cperati~zs carried cct purs:ez= to tkis Agreenent ad f=::., LL *--e ccnsentecion cf the ?et==ls:zi rescxrces. The CCNTXACTOX, Opercciz; sk2ll be scbjecc 20 the provisiczs cf. Czzzany and their suSctztrac==rs &t.. -.-zs Agreement-hich affect =hex, and to all regulations which cre d21:; issced ky tSe GCVSX\?ENT frrz tize =a =i=e except tkcse regelaticzs tkez zre izccnsisrent vith this X~reez~z=. If :. -= a -* . -----11 3-3 y:'-S .tCroe~'-nc, --- L .-:=,?Zs cd**------d - 7 ,r.rc,rtscs, ri~kts a=i c,;li;atfcr.s cf t!?e CCW.'E?2XENT tkat are re;resen=s: j ky tke YINIS'IRY end cf C?e CONEACT2R cz=er this Agreement, shall 5~ ~~1217 governed by =he ~rcvisic~s of this Agreecenc and may be alt~r:~~ cr acended only by the aucual aqreemenc of the Parties to th,, 5 Agreezent, which Is stipzlzced ky the ratification of the GOVEXhENT. RIGETS OF rZSOUISITION 7 ,J 1.7 ==Se cf zacfczal ez.src;=nc'j, tke G. :-(.as the rich= zi req:lsition to all cr 2 or' the Perralecx produced r'rcx ---,-- -:. =? Develcpnent Area or ..\reas dxring the peria5 of such exergency, and Issj.* tte right to instr~crl the CCNTX?XTC2 anr',/cr the G~eratizg Cozip2r.y Is bW,-'=.. iz=rzcse the _crc=sctfcn t3 tke zzixiz~x rra-, ec?ievaSle in e~---~-- s -a Yy vi:2 cod Fetrslec~1 Inf=strj praczice. ::.- GO:'EX!CWT hes also axci3 rl=kt of reqfsitlsn to t:?e 3evelc;:ent Arsa itself end any rslzzz, .-. fzc~l~ties dcrisg the serfsf cf sxck ezer;ezcy. n -. 7 .,. = , 7 ,-La ,.., ,,,,LA,XENT - -:-- hzs the ri$t cf 2 fizz1 r~y~isiticn t3 any ~evelcpze'::~~ Arc= Lf It is 2zcved to the C-C*.~?:IXSST tkez zk6, CC!iTs-CTOX bas cause8.. i-~ - _ its neqligence cr r;isc=zZ-ct, 2 .tz=rFal znci s-=scantiai dtzage LB e 1 fie o y ~2 zcilitlcs in t2e zi:cremeriti=nea ZZS~ . . ---.. - - = ,-.,, ed that scch CECSE~ +-. &j .. . 7.5.; - %. .i 7.. ---= . . . -:'0 ,.. ,.., even= zf tr;y ~E~:LSISLC~, OXSE;S a Zizal re~isitisn ref~rred -. ArrFzLe 19.1. the C-3yi'EF:Z!cz=:? fcr the CONTXACTOZ1s share in 21- e extztc=== y tke T less the Xcyalzy !, !?INIST3Y s Irodcc=icn Shsrizg Oil, end the cperating ccsss s: ' such &.< The CONTRACTOR cay nct , $ (except to an Affiliated Cczpany) assis3 to exy., person, firn or corpcrztion notahereto in whole or in part, +ny of its rights, privileges, mles or obliqatTons under this Agreeze~:? wirkout the written ccnsenc of the MINISiZY. The CONT2ACTOR st~ii;,~ guzrzntee tke perfc,--,ance of such assignee, - acccrcznce with the t= ,..., in of '.,,",is Agreener.=. The CC::T?ACTCX shall ~ive to tiie XINIST3Y a rrcrr.;-, zotice of any assi~zzeni to an Affiliated Ccz~eny. -. y-3 5 20.2 .- sS The ~INISTR'I shall si-.*e a;grcval to the assicr.,enc f:~ the CONT7GCTC3 \=fi," . . . -:d 211 cz part of its ri~kts, srivileges, zztrzs cr c5ligaticzs cniy IZ the followi=g ccz6itlczs are xi: 3 . .. ( 2 The cbli,-atF=zs cf a=si=z=r ne=r-:~z- &-a "-- this -qgree=e??= =xs=.~ have been daly fclfi2le.i as c2 ti:= fr=e such reqJest is =z&e a:$ . - renaln r2ifillti cn r::e c~=a sf =kt zssiqzz~zt. . W - . k\#-&J (b) The ?rcecsed essiqnee or assi$:cr xust ~rcduce reascr,t=,= evidence to the Ii oZ 2s assicnee's financial zz= tectniczl ccz;et=zce. 2 (C: The instzzzent cf assisr.,~.r.z zcsz izclxEe ;rcvisLcr.s sh-:i:y praciseiy tkzc 3s assiczse is kczzf kiy 111 ccvanan=s cc~~slz~~& -. -. in this Agreeaenr: and any =ca:r~carF=r.s cr ad5iticns, in zrFriz;, ! .$ that zp to scc2 tiae have keen r.ade. ,u A craft of the przpcsed assisr.zier.= axd 211 relevant aocczen-,~ su~pcrting the req:e,c-L, sha.il =e szkltted to the MINISTRY p:icz?? t to the date of the crcszsed assF;r;zer;t, fcr the ;ur;css .zzL..$ off lcial a~;r=val. ; "S (.5) As long as tke assi.qzcr skall klZ any iztezest uxder. =kt=; Agree-enc tLe assigr.or tccerher -;irh eke zssiqnee shzll td jointly lieble Zcr 211 3ctl~s eni ='=I, qaeiczs of the COXi?-:CYZZ ? 3 under chis Xcreszen=. <- .J Any assi~,zer;t 'zy CC::Z;At7ZX cz' all rr strs cf its izcerests!~. :.: this Agreenez= (ccksr =?,en t3 rn Xffilizced Cczpeny) shall ~ze prlxent tl =Lz H1:;ISTB.I of %enry-five cerca.-.?lf subjecz -Lo '' ttb (252) of rSe ::et Srles ?r=c~~&. 22 tez. "Yet Sales Przceeds neazs the az-,cc;:t resu.ltlr.g frca tke fzllowizg calc=laticn: f7 . . ': : (2) The tctal cczsiC~reclcn rrz t=. .CC:?TZ:CZC~ in cc;lve=t:-? --- ='; -G :I currenc:~ in tke f=-3 cf cask, cheq:~, er ctker re~aily zegcz; ,c--= ->: - ins---.- ~,,e.r,t fcr any i.?-Leres= in tkis .;gre~,aenc shat is assigza~~',; to any person, fin cr ccr-,=rasicn ncr: a Fa=y hereto cther skzz; i to an Affiliated Cczganv cf CCNEACTOi? in accsrdance wit3 tt:?l"-- - - =rcvisiczs cf '-,his Arcicle ;Of less z:?e sux cf (b) (i) and 5 (iF; Lelcz.. :.. !; .' - ----- -- --..--, - LA.- . -- - - zarxre n1.c soever inccrred t -,.* -L ...e dace af 5 request of saa 2=r iateresz tkereon to the tize s: (b) lii) ~ll taxes of my nature vhatsoever (except the said -end five percaaz (25%) cf h'et Sales Proceeds itself) of any taxizc authcrities k-ktzszaver ',.L,zr: are inczrred by CONTXACTOX ;;it? : "-- resgecc to said ass~~ .~.~ex. ,I The rfcresaid tuenzy-five ~€rc€ni (25%) of !:et Scles 2rcceecs shall :qT ep;i:/ to any ccnsicerzcFcn receivei by CC2iTTXACTCX fcr said ass'igr,ne:: ;her= such ccnsi6erz=icn is in t5e zature cP uork and/cr expendit:r&d cr to 5e rerfcz-zed and/cr ?aid ky the assignee with res2ec: ~erz=xed to =?is Agreement "p : rc , .< .$ shall, ~ith tke r;~r=-.~al of the XIN1Sz.Y have the risht tt ... security inceresz ..i respec: to its interest in ??;;A -. . . fcr the _=:r;=ss cr oztalzrng fizencizg Zcr the ;ecrzi~i~'.~ - vhicfi tssiqzz.f.-.= sktll 2s ;;itkc== ;rej--;;- -,,-e ra tke !<3!:IST3'r' 'id ri~trs unc2er this XGroerezc. AZTICf 21 . . BXEXCS OF XGF!EIXPYT ZAP IGFS4 OF' C>3TCELriZ'IC!? . .. .:=J :< .. * 12. (2) Z5e CCi'Z?.,XEIJT has =:?e ri;;lt ta czacel =>is Acrernent Crcer 2: a ?residential 3~cree, zi3 respec': to ks CC!iT=.CTCX, in -Lr.v - - .'. y =all - , C..: w-.L~ - ~s~EXES : < L .., i -. If lincwingly, it has sztzittoi tny falst stztez.ents to the ?!inis==-. . - .*.hiC17 ;;ere of a -----: -1 --=- ------ -- &% ;< \! ...c~=--=- C-..---E~CLL-., 9cr t5e execution cf -..-. 1 Agree~ezr. . .i , .- F s-y =:- -. ,, it eces act c=z;~y --;-' -... ,-.. al y Aqrsenez= =r ui=kczt axthcrit.,: zf -&L-Z c..- . - ;Ot~?.~XENT, axcerr scch excrr==icr.s zs zay ;3e cctvorca3le ts =5,'1: result of ogertriczs ccn5~c=ed hereunder in acccrcance wit' i acce~tsd letroletzx IzEixcry ;rzccices 2r.d z;7Fc;7 shall be ncttfie., to the !. Ct:;T?ACTCX and the C;erazizg CC=;ET;Y sf r.g KC ~ncer ,..,.. .A .:qreezenc skzil 3a exczsei if, and to the sxcer.= thae; such nzr: =sv=-- The aeriod cf azy SU+ - ,-,,,zr.ce cr del~y is s~:sed ty 'CZCB Kef=---~ ----. . - . . . zc:-zerfcr-trice cr =slay, tz~etkez ;;l'cn SXC~ ;erisd ES r,ay be necessaz:$ fcr =ke res=sr=cicn cf zny Czzage ecne eurizg sxch 5elsy shall be z6dd z3 the tize given in this Xgreezent fcr the 3erfcrz.a.rlce sr' scz: c5lisaticn 2r.d for =;la ;erfcx.tnce sf zzy =tliyzticn dependezt tkerec'? zn5 conseq!!ently, to t5e ten cr' tkis .\qre=z.ezt, but only if -&,? C.. e 2 e>:,=szsicn cf tSe te-3 cf tkis ;.sr~e=cnt is =titvzzt to tke ~erfc=~zc! cf suck cbli~aticn. 7 $ . , it. 2 "'trce !!ajeure1I, vithin =:?a netni:; cf ^" ,..-s ;.gr=ezent, . shzll =e rniP - .. a"",', ,-) cr2az, rey~1atisn cz 5i==c=izn cz =ze CU.:---,.,,~;T, cr (with res;ec= r- CC::TZ\CTCR) or' tke -------- =,. =,.....en= e= rtc c: i:: xhic;? tny 3f ~2': ccz;z.rlies ce~2rising CC;;i=CiCX is ir?.ccr;ertred, ;;hetker ~rczulgz==ds2~;.:' the fcm or' lzw or cther~ise, cr azy act cl God, i.?surrecticn, ri8. ;;a=, strike (cr cther Ickcr 5is----'--- ,,,,,., ce) , fires, flcods or cny ce~.".~ -.a- 2';e KO t2;e fa~~lt == -gclFcenca cf ^,ke -.I--.- - .." - - - -- i:vsking : crce ~a j euzzq - *;.ether -- or ncc sizilar =a zke fzre~ciz~, ;r=videi rkzt t~y scc5 caxsU is =eyond tke re~sonz=ls ssztrcl cf the ;rrty invcsizg Zcrce Kzjet:r=. P rr 't udice to =he rjcve 2nd excess as nzy be otberdise trcvF<= 3 GOVEX?Z!iT shzll izczr -3 res;=:sijilit-y uhatsoever t3 zk? end the C;erati:g Ccz;~-y fcr tzy tZ~zages, restric=icns cr - , . lsss arising ia conseqence cf scc3 czuse cf Fcrce Xajeure, exceFC +::* l L Zaze~e cr lcss caused 2y villfxl acts cf tke GO\ZX???ENT rel~ted ta -'a - rcr=e Xajeure. *-- -q ~ $ 22-4 ye -- --- -,e Zcrca Kajeure event occzrs 5sriag the Initial Explcratioa Peri=5 -- -, zr.y extensiort =hereof and czntinues in effect lor a period of six (6)q ?!c.-.=fs rhe CONmCTOR shall have L9e c~tion upon ninery (90) days ~ricr 1 ..-. --- .lb ,,l,,=n nctice to the EI2iISZ.Y t:, tarzizare its cSli~a.iricns hereunfer wi-;- ,,,G= fxther liability of eny kiza. '? 23.1 In ==se a dis~tlte arises znder this Xgreeaer,r, the tvo parties to ck+ - - dlssace snzll use their 5006 ,'tit> ~zz~rts to settle t!!eir differc,:cas'.: -s.J - -.. ...-caal agrec,z=r-t. (ye- b..crc;lse, tkt t;;o -,trtias shall suhit =keiza dis;:se te ar=ltrzticn rs ;r=vlcad in this Article 23. - . qg --3.2 :he ar5itzrcicn shall be held in 3trls, :rznce, 2r.d ccnd-ctsd in :L ....:& - -. tr.y:~sh 12,r;~:age in ecc=rlt:ce ;.iz!\ tho Xules of Ccnciliation e::.:::. Az=irztticn of the Izterzsticzzl Ckzz..er =f Cszzerce. 12 the evezt zf, -- ---1 . . ..- sics aexg :eke in =::ES= r~les in cerrzin cares, tkrrR . . . . L. ; p ~r=~==~=i~n ==l=xzal sk=ll os=:=li=h ~k~ir CY~ ;==c=e~=e. 23. j -L.= -.-- =.--:----:- =---n =>all te izitFet& k-,r sFt:-.fr ==rsp 23 t.h.e zi~t-==~ ("?ir,c= ;zrcyN) qitrizg .~crica co =he cr;ter ;ar=y ti -,>s dis~xce ("SBCCZ$. . .. 3 ) =:-.a= it eleczs to refer =:a dispzcs to er=~crz=fcn and 52s -a_-. -L - . . ~,,-L..~ea e2 arSizrztzr ~ho =hail ke id=--;=' -..---~eo 2.1 stid norice. Tks 7. ce.--- --y< -4 -.: 7 - --.A ?zrzy shall zczi2-- Fks~ ZerC2- .~-~~-nq xi=:ix Zcr~i-Zi~e (4~) .- . -.--. .. drys i8er.t:zy~ng tile tr,'itztrcr ,..=r I= ;?as selected. c + -- . TC -' , - --,- -, -.-e Se=c;;d Party does zc-, .as;=izt its ar-i--=--- b--LI.-t bL LI.e =ivs= --- =----? a .-- _. =i =: 'l - 5 -..--, have tke riffit t? ezr1-y E= tke Czcrt cf .\rbitratlcn cf rkS:2 - ,L2-G ~z=arzaticnal Chazber =f Czzzerce to rcpcinr a seccni ar3itrarcr. -..- b31- -. &.. cn 3 arkizz=S~rs shall, xithin -*-: ,..,,,, --*p (30) days, selfct a 'vs . .. ---.-u ,? =-----ator ftilizg ;;hich tke t5ir5 =r=itrzzcr shall te aljcointed by rk=, :,. Ct,rt of Xrjitrttion of tke Ir,terzz=lczal Ckt:,;cz =r' CcrrEerce st ?--A r*.-..-ei - f:. --=-=-b Ci SFtk~z ~ZZ~Y. -- , . = -Ls -+.-+ -"--;-v---v --.- --.- --.1,-. S--rL-~Lrr sktll zct ke 1 tftiresl zf tts R3Y cr sf a ~hich any cf the cca-,enies~cczprisi:g C81:TF&CIt3 is ir;ccr~crarec, T.3 - in . --1-&4- shall be a citizen cf a c==;'.=ry ;.:tic5 kes di;lc-,a=:c ,,,=,--ns uitfi =:-.a . .?P aZ=rasaici czuztrles, tnd s:l.all xt 52;-t azy eccnczic izceresz in the cr-:t t=si:ess cf =he ZOY cr sf sny ;rr=y zo the dispute. ; - - u 2:. 5 Ths ;ertios hereto s:?zll extsni o the tr2itraticn tribcnal al;'? 2ezilitfes (izclsiing accsss to =ke ?etrolaun operaticns) for obtainiy! 2r.y Fnfcxa-,izr! rewire6 fcr the ;=:;E= dete~,iz~=f~n cf the ~iis?xt=.e -L ,..a rksezce cr iefzul': =f azy ;=r=*: so =he zrSitrz=Fcn shall nar t2 " -;&& ,e-,.-,-ari rs rzevext cr 2i:ter -,he zr~F=rtclcx ~rcceeaings in ariy cr el::''. !;.H 40 t , I .- I. 4 . . : F -, i c . , -.-. cf L=s stzges. 22.7 Pending the decision or avard of the arnitzation tribunal, tkq operations or activities vhich have given rise to the arbitration need.? ncc =e discontinued. In the event the decisicn or award recognizes thk.e= La. ,,,a ccmplaint was justified, ?rovisicns zay be zade therein for sac;? re~errtion as may be as;rc;rietely zade in favcz cf the conplainent. j ;i the awar5 reneered =ay be entered i,? cny Cotlrt hzvizq cr ap~licaci=n Gay be aade co scc:? Ccurz fcr jua,-,, the .ip: award and r;1 cr&r sf enfcrceaenc, zs the czse nay =e-u 23.3 T.L;= ;ZSV~S~CI?S cf this XgreeIient relating c3 arSitrctisn shall cc;;=izr: =q i,? izrce ncY~ithsttndiag the teminatic,? cf this Xgrcenent. - < -- - L.4 -~.,3 Tke carties hereto bass tkeir relati,czsnit, under this Agreement c,? zkz -- ces . - of goodzill ani cod fri-* . The interpretation and fi $ k ai;licaticn of the crc-~islczs cf =-?is Xqr~enent wi-Lh respect to tkt 'd =, .--- : ,,,,,, lcr! shzll 'se in acc=z5tz=e ;;i=S tke \,'ez-,s:i laws char art C..-~ ,,,,, : - ;ed in Article 24 cf =5is Aq~~~~~~~. . .#I -. -. &J 2;. 1 1kFs Rqreo-=en=, its :-;lze:*:es, and ~zy zc=l==rcesicn, ;.ill be qcverzea ez= inze-~retea acccr2ing z3 Ye LEKS excqz tke lzvs which zr* - ---- I..,-..sistezs zit;? chis Xqree-~zit. :: $ . F .u ARTICLE 25 ,2 - - STXTCS OF PXRTIES ir -2.1 The rights, duties, cSliqzzicr.s a35 liE=ilities sit;? respec= to t:te ,,I..-'-. . . f azd the CCNI3CTC3, shall be rsverzl and o ;OLE= c:::3 czllcctive, it being ~.~co,rst=oC t:at tkis Xqra~zent shall zct . . cz~scr~ed es ccnstltxtizq an Eassc=:zr:cn cr ccrp=raziz;1 cr 2ert:ershi~. T.:? ? 25.2 Tke C0,XTRACFOR cos~znies enrll 3e s';=jsc': to L..- LEVS of the ~lzce w>;---a &L ,..ey are inccrporated r~qzr2iag -k -..s~z legal status cr creatii'. .- cr;tnlzatic3, ckzrzer HA 5y-laus, sltrekclciizg cad cwnerrhip. n Tke CCSTFACTCR cc~sznies resceczive 5:larts cl ce-,l=al xhic:? are c,?l=irsl~~ :?elf ajrczd shall zct Se neqctiaS1s i,? ika ZCY a~r! shall zct be offere;, - - .=..- ,k, -. ,tSlic sukscrl~cicn in 3OY. . . ~a.3 .:.11 cc~pzaies ccx;risFzg =>e CGIii?..=.C'"3 stsll 5e $oiztly znd severelly ?izk!ls for the 3ertc-czcs cf the o"yicr:ic-s cf +lie CCNT?&CTCZ ;m1er: : Aqreezene as -3 '*= h#T*-----*- ~~7 ,. . La.- ..-ex -- -*.a . . '-'-.7/ b . P. 25. .I '=,",is Agreemen-, shall c=nsriz:te -,he authcriry fcr CC;N~CTO~ ta c=r.=:== ell zctivities as are necessarj ta czrry out the Petroleum Operz=;--c es ccntemplated by chis Agreenenc. --"91 41 The CSIl=CTGX cr the C~ereriz? C=z.;a. ly, as the czse zay be. and =kzig s..-~--- ,,,.,cractzrs shail : Give prisrity iO l=czl ccr.=rls=zrs eni scbc=zcrzctsrs iacl"Cir.3 #Om's De~endazr 'c'nirs as 1=z; as their perfcmance is con-,arz,ili: to interzattszal sctzdzrZs azi qua1iq-y and tke prices of tksir services are nct hisher tkcn =ke ~rices cf ccker contrzctcrs az= subccntracrcrs =y aore tk2.1 fan Zercsnt (fCt). The CCIVTs.CYZ* cr the Cp~r~cizg CCZ;BI.'J 2s a;;lice5lo, shall, follcviz-_ . . -. a consultzcicn ';it' Xf!:IST'i'l, rr.-.-:re q~e~~f isd '3~~1 cczcrzccc=rs f=r . .. biddf-g vnen i= raqLes=s =l=s f=r aZ:J req~irsi se-rvices. 8 ..:.a Give ;referex= to loczlly =anufzc=:=ed ,a=erizls, eqai~zez-. =lachi.-.e,r;r end cc.-.szzables so lzng es tkeir q~ality and ti=.e ;-i delivery ere ccz;zrzbls -3 ir.=crr.a-,iozally availeble -=cerirlsq eq~ir;=eni, xec5izery and ;t~s..-ables. Yc;.avor, scch za=eri=ls 2. . . 9 emiczeac, - - saczzner2T and z==scza2as :ay be izporzed f=r -. cperaticns ccnecc=ea zerec~ftr if =kt locrl ;=ice sf szch i=~=q? at the CCIe .:.ssocitt€d Gas, then the STAT3 rnd CCN~CTOR shall zest fcr the 2cscse of rezching a zxC:z. aareenent on the texs and ccnditfcns of establishiag a ?siz= venKxre cc'-,ctny cr ctkar fcx cf participaticn fcr tke said jciz- venxcre. Any szck zqrtt,.'-fzt sliail se kesed cn the fcllz;;:::~ 3 * ~rinci2les. . . (1) rke SiAiz1s =:;~r= Lx f.:= ;:>:= --------a .~i.---- s?c?_~ ZC~ 2.- LESS z~L:? sixty pcrcenz (56%). , . - . 8 If ~n A~~cez.sz= is zct -==,-- ----..€a BS ccr.t~rr.;l~ced a=sve ;it::, . six (5) cs frcx k Zirsz zeetir.g cf the STAT3 a:. . CC!C ss cfcr~seii, -2xless scc5 tize is ~xtc-zetd --. -9 2:t;ral ~gr'eaz.E,=, the 2.2 1 =e free to c,..--- -e5c- ; - - 2 -- ;A ,,= ,,-.. s ;i 2 t:-irP =e=-,y fzr E agre~m-nt cn c?.s .-. --L-u .--a , - -2-2 -- -- ----------.. cf s=;c:l Associrte5 Srs zarj,et&yg ,- e .-,- ---. . -C ::ell :-.zve -Lke ri~kt, . . . . a~c~k~r 32rty, =3 s,=z:= z ~EV =Z==CSZ~ - ts zke sfXTZ ~CZ =z cCp--: - cf 2 joizt ve=t,re zit: tke STATE. $2 27.2 cr: fes =k, ~,,l-~,,,e zszl-,s end c=zliti=r.s c,' khis X5rezaent. 7 .a 12 CO!:C?ACTC3 and tkz ! :.< . \ + F 1 .. - . -. - ,-r=-::==a, :=;;e-,?er, 5.7~ z~sclcs~rt XZ~ET ;tTZ=~t=h (=) (i), cr (5) ;.B .. . - - . . . 'P =icve shzil reqji=e =he =kir= ~zzfy =3 Fa1C3 ck~ clfclcsure is xzc= CI zgree ia rig 3 cz 'cks s+=e c=,fi5eztitlity reqirezez-_ z==lie? - - ta CCST3ACZCX tereuzc~r . f! - - .-- . c'U , This Article skzil :== z;;ly t= t=y i.tfcr=.ttic.l y:lic:l the CC!,+.---. ,- ccq2ired cz +~~:ires frz~ EX~ SC:Z=S ctker :?EX frc7 the =~rfc=z.r.-.ce : -. -- =his Agreerezt cr fzcx tke S;.-.A; tr vhich Is cczsifere~ +a te i.; ~3 ?z=lic eczein. &, - - .Y -- * .-- . . -. .. c;pr=val of t2e GGvr--JZe rvail+=l= cz= zty fs = . . Ecr =;art=iczs .zT;~E~ .. . . . Z9.2 :+&is, telsz5cze 2 ctksr cc--,=F;ttic:: f~ciliri~s =az.-.za:zEc 3i:i CC:;~T-;C~C~ cr.d .--=---: *L--= &-..= -- gc-~= ...--... -: -..--- ,a-,; 1 1- -, -,- =,, l=s exclzsF\-e cse z:., _ .. j: -. ,,, . -- ,,-es - e sf jts +~-t.;li'~ . . -. ,a Z2.A - - ,- L-GS x.1Cer =:,f .;grt~,f,=, 95211 =e scbjecz ' p-.---- -I=-..,e:tal re5xlctic.t~ ezd s.-.z-- . .- Se tq.-ailt=le fcr recsczcble =- c-- = --* esf=.gency :se kv tkt GC.-.'EF..\XZ!;T E=QZ sf -..,,:-. S:ch iacilities n:-.c:n be so CC-~--.---- -- -5 ~22 =;e=fze zf =c= :a i=-,E.rf==~ sit? =i~il~~~ : -=- ..,,-/ -..-- . . -Ls ---. ec. - -..-Ltll~ti~r.s ;.:lic:l exist cz --• - --.. -..- := -... L--:-x cz the :P, C;=~rr- - -- .'-----• >, :' - - - --LI..z * -...- -;..r =:7211 :?ti-8 the rizkt to -2-s& . . . . . - - ..----..i -- --=es -~itzia yz.:Z!r r; = "&b.---- ==l:.E=z c== 23 z scf2 r.z=:Er, e:n:is=::- Y --- . - - ':. s-cz-1 -{- =-=lFc --=a -= -'-s ---Sa- ---C-V..C- ,e -..., , -- -- I ,-- *- -..- -=-= -..- L- --"e4i 23 zizi=zzizsa i i a,.--. --- . q e>:cs;t f.i1=:? zctes cs tke CL.\,.---.~-,~ cz :ZBZC=~=~ C==;t=y Z.CY v'-? - -a -.s ---can= =f tks, I.iI:;I,C,;.y ee=lz-= == f=r i=s e>:cl-dsiye ;ri-,?zr= -2-e. ,..- --..- .=..'-A tr- -'. ="---*- a G -La - ------: a - a cW---%V-.--' -,.-b, ---; --- - . . - -..- .= ---- .------ --.S.--I.A..- ~-~..=rities, -.-- .--. - - - - b- 9 CC:.,--,C:~~ 5r.i cpezstir.; Ccz;a:y a a;. e CSe rnd cccr-,a+L+n c.yg s"-s 'p . . ,.---e r=;.==s cf -5s :rzts tnd =-iliir,gs cyned LY tke GCT~EZLIL,?F&:T i:& Yz~y vhich =he Z..E~J rezsc-zbly rs~~ire fcr tkeiz saeraticzs onler =>is >.q=-=nenc =:=jcc= -3 13 iqread cyo:. rental pzlzen: vhich shcll zct 113 1055 z+~cr~bl= =>an e\-ailcble to a=? cth~r interzati2-21 ccz~+.-.y. h3~3 l~nd, surfece ri-hts ;r is re~ired by CC!ITXCTOiL fcr its -h; = c=gra=icns -:fer la.-- ;-gr~~z~fit 212 ;ri-,-z-ely acc~;ied cr ci~1e1, i=q .-..--i lerso cr cleczzzce rkzl!. =e hff;c=zd ~t %I-s to h= r.eqczie=ex . - ky CC!:i;ACyCR ;it> t:le ;::.er sr =c=.l;ie+ ZX= such t€-s shell :.C= te :"? p \ --- * ccnr sc==tanti,~ll;J -=== czerc.;s to CL..,;-=L.LX =.'.en these :cxclly c-Sfezo= c.--e--~. 1 5" =i=ilar :rz~sec~i=rs in =be 1cczlit:i cczcerr.ed. I?? < 1, -;=n =eqzz=r =y Cz::ir&C=t3 essis-, i: t.L.2 :~o=i.ilti=:: i ..<--- -Le c..---,- tL n b La. ., cccxzi~r tad s.'.tll :=a tke ;c;.er ;t en:z~r.= 5~r.ci.' . .- - ,:;,n nect,sscrj in cc=;ellizg ccsfs. -L ' v,,l--Z --=- 30.4 Cc:si&eriz; =.'.,E-, z:te 3~r-,i~s ;:ere,-,= =lSe ~..el= - --c-,,.,,ai3 czier -"' Tt ---:$ Xsr~eaent =a scsd -;ill cad $003 f=i=k, the 2crtles hereto ccree =kc= ,.. bL ~..=se ~rcvlsicns cf this Agree=enr =nere a Perry hereto is repired =z cttain *e ccctect, cpprcval, det~r,iaaticn, or cgreenent cf the ct2c.T ?2rcy hereco, cr of the STATZ, such ccnser.t, eczrcval, detemixrticn t.,j zcraesent shell not Se cnrecsonzbly vitliheld. A.ZTTCZ.2 21 > . + XSSIG)r?E)rT ?&3 ZDTECXtt>TfGN 9Y TZ3 "fXSTXY ?-3 < . . ,'7 31.1 Tke xz:JiSi-yy resenVes tke rigkt t3 csslcrr ccrr cr the vkcle cf r=>~rn -: ,,z..bs ma-L 2nd cbliqcticas in this Agre~=en= to cny es=z?lisk~z=, ccetrztl=a, euthcrity, ccz:,pe.-,y cr azj Ce;c==ent %zt kelczss to it 1.q ' tke 2CY CzrFng cny sariod ;;;te;l chis X~reeziezt is ix effect, and reszr.-f::.i - i & ' , &f L..e richt ta reatcre ell cP its ri~kts a~d. its ctligcticxs ct cny &-... = -:-LA ' it iesirEs to ,so ---= 1.;- v~;<-c---- :--sz L=S b..- i-z..L 73 ESS~C~ CZ~ ~E;;~=F=G 2-, =o e>:sr=ise its ri~:?ts s -=-- - . ; a"'! --- =era =.'.ex =zs E----... L &::.+ cklic;cti=>.s -L.lf €= this Xq-c -- --- --""-- -"- - . . :.$ - -=...=..- -..----..--- a te stzy~s == zzsd extc:=ica cf tkis Xgrecz.Ezc. *-..sucIT;---=-- . . .. qB -%a. --G~:S-=- ~f zL~:?=s 5:: ==~:TE~~=zs s~zLL ZC~ ke ZLZZLZ? ; . .$$ . -. CC::TG.CTO3 szd ike 0;arati~g Ccrr.-,tzy czti!. :::e XINISTS'i has deli;-e,-.-: 1 . . . ... to CCST7dCZC3 c,r.5 the C;ercr:.l; C:=;tzy t::e Cc='~:ent effecziy s.;,.: i--- - -- =..szer. 3 . ~, &$ AZiZCZZ 22 c y ---.. "-TP-. - r- .- : ~.zs- -.-- L: 2 ------a 5 17 1 -.-: Ls .*.=: -- - . .. . . - : ----.. --. - -..-s X~rea=tnt . --,=r] zrl :-:t Xrrzrc tza - ..,--- 3 L~..=-~TC-S t=th =$, . ..- : -* .. . . . - -..,,a skzll hrve eqc21 LSSZI E=ZCB zzf sf2et=; ;z=-;L=EQ, .:c;~E;-E=, ZCICZ:! : . --.. . . --i.; r ,.-v=. - ~=*.-~=~~<~~:~ az=>cr?=is= =:= =:= ---=--- .=-- 1-3 =k=ll 22 zGf~rzz~~ ' -. -- ~3 iz=s-yrszizg tkis .;$zeeze:=; zzi in zzy ~z=L==zcicn ;===sea::; .---a- -L; .--=,=--- . -.A, L..-s .=* ---... =..- -..- .~c>Fc szf Iz~lis.5 -.-ersiczs shall 2s =.=fsrr=+ *. - -; f ta ~x ~zzar;r=ti-? =:in Xgr=~:ez=. ,. ., + , Z 7 Certi2jing the foregoing, the lasties hereby sign this Agreec , on ae date ;hi& appears in tke E:recr&le of this Agreement. T3S XISISTXY OF OIL 23 UI3T?ASS 2BSOuRCPS . :. tl-7' ---- : ~~;~~r xi=.is=e= TIT" . . -;v=c-av -__- --- 4:; <. - ,. '. zG?:ArbT.z : , : L?' q-r.-----~ . - -b-.-p.- b.Td . h r4 L-L !R ./' i: $ ' . i ,G 2 ) SCXSA JYZZO YE?.!?? a. s F? =v ,: - - : Tcr 3jcrxlf 3~~5 -' . .... . . 2ZSC313TIOX OP TXE frGXE.=YT AXEA JOTiAXiY!3 XXZA ZLOCX 32 - ~L'LAT-AUT GGTZXNORATE REPELIC OP YZYSX .F The .:cre~nen-L Area is 5cz3d c3d =tztriaed >~,y tke straickt li.-.es .> ,, .) ., , ccz,-.rctiz=; tlo, ~cizts A =Zrc:z:? 3 ezd clcsixg et X xbare tkese ., .< . . -8 ~ciz=s zre defizea 5'1 =?eir folL="'-- -;.., Cc-cr=~z2tes xhich Zom ax iztscral part cf tkFs Xnzex ".%ll Ff c~~--~~~F~~ ~t ;oiZz 11-\'1 CL. -'* ~. 17 ie~zers GO 3ztft:2=: =izx=cs CO SCCCZ~S !;czth (-0 19 e=c=ses -; ..A-..-trs -.- ~=:$Ft_:s: 510 sfcc.?Zs last .;:z=x 115" iz EX il~-fairl=~-.-s =a:, 22 =:12 .:e=~e,ent Area ;-hfch c;z= 1.1 T5e Initlrl Sqlcratfcn Zeriod Is tfiirty (30) Montks Seqi~?iag frc3 the Effecz??e Cate of this Agreement. -L -. -..e CCRrn.cZC3 Is cjlisated =-rrnq tka :xiti21 Explcr~tim Zsrlod, to und;ertzke tke ex",er.=it':re c2 Ynited Stztes Dollzrs ttr;enty-five 11 ('J.S.S. Z5,CC3,ZGO) as a zinixzl, Fzc1'~di:q tke execzti~n cf the 1 Sxplcrzcicn ---"I ,-,,,z--es. Tke ccsts ere estizzted c=szs ~hich zilL be use4 =C.L LL --, 2u~cs2 cr' dr~wing ir=x =:a Szzzar sf Credit. Ccst Zcti=ztl,(iJ.S. $.!.2?) -L 2. l 1.1 ,,,2 =ver,t CCNTZCZCA eleccs to enter t5e Seccza Zqlcraci:~ ?eriod, suc.5 ~eriod shall last thirty (30) Xccrks ce--enchg ct the end of t!ke Izitial Sxplcrrtizn lerf od. If t>e CCI:T?ACZCX enters t5e Secczd Sx$craticn r'eriod, -. tke CONE-iCXX uill cur2z3 such 2erfod >e oblisated to L2e mini=,= ~qer.aikre cf 'Y'nited Staces Dollars nizeteen ill rr;d five kur;dr~_i tkccse~d (U.S.$ 19,500,000) includiag t5e exec*xtka cr' tke fcllcwing Sx~lcrtticn 5. Drillicg and ~val.ia=i:x ct =Lzee (3) -dells/ dJ CC:;Z.C'103, the cgerzciz; Cc=;ar.y zzd their stlbcsztrzctcrs shall have thz right to export free of Cus=c=s Duties and related taxes e. azcerial, equipnents and goods xhich sere iapcrted to ROY fcr tq pcGsse of the Petroleuz Cgeraticns irrespective if they were exemgc si ncz frc3 Czstoas Duties End related tzxes acccrding to this Agreexenz prc-~ided CON~CTOZ or tke Oper+ci.?g.Cc~;tny notifies the MINISTRY =R ,? 8 suck exportaticn. A$ 12.4 T.?ere shall be no license req~ired, and CCXTZCTGX and MIBISTXY tkeir restecti7e custczers shall =e exez;= frcx any duty, tax, fee eny ct5er fizencial izaos= in reszect of tke expcrt cf 3etroleux L.L. Subjecs ta z~y cSliqzticn xnder this Agreement ta sel: ,.,:s Xgreezsr.:. Fetraleax to the STATS, the CONmCTG3 shell have cke right =o (except fcr tkse fees znd charges ~hich ere norxially paid GC-.ZR?EST fcr actuzl services rendered =y. the GCE?mZNT) expcrz ax cell the Ccst Oil end its snzre cf ?r=ccczrrn Shzri~g Oil. , 9 - rh= CStJ??L..CTOR, the C>Erfting C=~;2.ly 2-5 their sukcc.?tr~ctcrs skal- --.- :.=.a the rigkt after zacaivizg a~;==-;el fzt= the !3INISlZ':! to sell a;) ----r; ...=, =,,als cr eq~igzienz =r yccfs :hick Kers dtzegc-ci cr :sed, and tker=+ i;ectze ~ca-se~~~c=a~~-s; *,i--.- - -' .S CL..I-%%C=C~ -.---. ~1: %e.. Opest: -: Cc=-,any cr their .Affiliatad Ccz~ezifs res;tccively clzssify as scrz? .' +..-: ,,...< , in tle 3OY withczt 2ayir.g C-sz==s 2;ltic,s 2-d reletad tzxes. 5 .. aels, eq~ir;rrer.t i~d cooes, tr -st2 kt servicerble zeterials$l 12 3 %---- eq:iprr,e-c ex2 yccCs, that erl- s'~r;lzs c3 =:lo, ;errclex-, Cgereticns ccder L.i ,.-- : c Xgree=en: xay be s;li ;z=sida -.k= BE aErr tke !I.ISISmY1s ep;rcve.? fcllcving c,xscrtzcicn cr zay =e sold zit?Fn the Z3Y ;rcviCed tkac f~:~ e-y sale in the 20" the ;xrc:?asar shell zay t:le crpliceble Czstcz.~ D..-: r,,,~, ,= taxes cr izpostr, Ir . - eny, SXCL;~ if sold to !:c,zi;tisr: as CC::TG.CT!R. 12.f 1: =ke ev=n= at rzch s e re 22.5 cr 12. 5 ebove, the prcceeC-2 .z--- ,,,... such sales shall te divide5 ia eke fellc~izg ztr,r;er: . . 24 Cf!;T-:CTS3 =>all ke er.ti=lsd to r=:zc,rst-z=z= of its xrlreccver~d CCSZE, . - ? r= sy, in sc a z 2. rz5 =:la excess, if any, ~5~11 =sJ . . - - "= ." ,,,, to !.SI.'FIfiRY. CC::lL;CTC2's ,;lreccvara.i ccsts skiell Be redxced,*::' --- . . C- : ,.., azcc:-.-, sr' scch rei,-Jt-zrsarr.=z= ;z:= to C3:;T?-ZC:C2. . . .. .. .. . ,-.-s raties 12.; Pcr =he ;.J,?cse or' i;;;ple=er;tizg czls Arcisle, tko, CS--- a e i,;cs=s end tt~es ,(e>:ce;= zhcss fees end c>arg=s ;;hich zz= ..)a- ..,,.,ell;r ;aid ta the #ZC-:Z3SG!E!;T frr -sc=zal ser.*Fces ren2ered =y rks . .T -7 C-S'.ZQTlzrti.ig (or ex-,cr=izg, ir' t;?liczble) the sels; ? : I zie=arials, scr~ipent end ~cods. LA , , 12.9 The CONEACTG3, the C;serz=ing C=z.;za?, ez5 =heir sz5-cczcrectcrs 2rE: ; ex€--- ...,- f=zz =tll need =a cttair; iz;zr= 2r.d ex;crc ;emits for equi;r;ler.=.'-' en 2nd gcocs raq-:ired t:r tkeir ac=ivities znd they vill =E, . . sxe=;t frcx geyicg cc:cc,ssFcn rzyeA=rss =a 211 Yezeni ccrgoracicns =I ccz;231es.. ! i 9 ;'- \iL k\+ ;L w- \ \ 6 '.#. -- \ '- ti? :very foreisii em?lcyee or' e CCI;ELhCTOR or is Aff---=L, ;---=? Companies or its subcontrzctors are permitted to import frczai abroad, exempt from Customs Duties, a reasonable quantity of household goods, ersonal belongings, and a car to be used only fcr his personal and fazily use. khatever an employee imports mcy nc-lj '3 be sold in the ROY excepc end after Custcms Duties and relacec taxes are ~rcgerly paid. -9 ~k In order to iru;le=enc the ajcve sarzqrz;h (1) cf this Article, '..-. understanding cf the custc=s fees scated in Articles 12.: 2nd 12.5 of this Agreezent zust he e;;Lisd es ~211. "B LL LA,^ Operz=izg Cc-,~t.r;;r The CONTECACTOR , and their subccntrr ccztrols ix shall ke exexct frzz fcrel~x EXC~CZ~Q the SOY, 2c- ,,vities : uzder this respect t'o their Xqreenent. &$ . . cC:;T?-:,exts. &.i c COll=;CTC3 =?all kzve =he rl;k= =a ?=ld Znitsd Statss Zollers cne other freeiy ccr.ver=l=le c:rrcr.c',t in s =an.% ~cccuzc in t3e 3OY iZt 9 a bank see,-:zc cf tktt : required Fc =rizg i~to YEEEN sxeh fzrelcr: exckange es re%ired 'I=: 5 meet =>el= perscnel living and other expenses in YE.XEN.;/'v *A 2 IL; .: , '4 1.- .- -, I . (4) CO::F,CTS~ shall. 5~~9 Eke -;-" ,,,.., t3 receive 2nd retain e,'=czd 2z. freely use all fcrics received =y FC zbroad, includingt ;lit?.zx= limitation, any sales ;roceeas frcx an authorized assiqxlent -3 its interests in this Agreement, the proceeds frcm the sales c'; its share of Petroleum exported, and proceeds received ~y' CONTTUCTG~ frsa zny sale sf epi;cer,t, ;;laterials and cozd+ penitted as described in .=.rzicle 12.5,12.6 and 12.7. . : , l2.10 (5: MINISTRY or GOVlZh?i3ZiTt cr -. zkeir desiqnateci surchasers in XG:~ shall ~;ay CC!:TFZACZCX ~brcza 1.1 C:i=ea Stzres Dollzrs fsr czy letrcleua pcrckased frcx CC!;T?.CTC.2, inclucizq ?etroleu;;l =?.at 5-.? requisitioned by the GG\X3XZ!IT surszzzt to Article 19 belcv. ~2,' +. v ,ezx llebrczd"t zs ~sed in rkis Agreazezt, aezEs cxtsiee tke 20:. T5e CCS=C:@~, Cgertting Cc=;axy zn5 tkeir sctccntractcrs -.- 3 -.q . . ? pay Yemeni Ccntrzctcrs and ss~,-iiers zf ziaterials aancfzcr~red 1: : the -TOY ix Yemeni ccrrency. The Pezeni ix3crters of eqcisxezz! . . machines, and cczsc~zkle ~GGCS, vni2:l zay =e cStaixed acccrclz--- t3 ~re=lisicx cf Ar=Fcle 12 .:3(1) cf this Aqzee=ent shccld he ;zi ' by fcrei~n cxrrezcy fsz =kt :=ti cZ ser~ices z:d ;rscarezezt. j ' '7 CGNTILZCTOX axd the caeratizq Ct=-,az;r ar;5 fcrei~n ccntrzcrzrs ri. , : subcrzrrzctcrs cf tke CS:;i?-\CTCX =:5 the Ozeretizg C==;zr;y, .s 1 well as their resieezt fcrti~x st~ff, snall hzve access to t'. duty free shces in tke ZOY. .. . The CCNT-XACTOX zzd tke Ccerzri~q Ccz7az:~ as ccsliczble shall eet? mainczin zt their 3usizess sr'fices in the ZC'i bocks or' ~cc=-:= .. - in zcccrZzzce vitS tke -;cc=-z:ti:g ~rzc~2are In Annex ItFw of tki : kgre=xen= and actsr5izq t~ tke ccca>ted acczcr;ting przctFcr- generally ~sed in the ?etr=laca InC:ssr=y. They =us= keep s.;c:-. atktr Socks an5 rec=r5s t ZE~ ke .-.ecesse~~~ to shcz tks ycr' i perf ==lr.axce cncer =?.is Xgrzt-c:t, iz=l-zf izg =ke zzcuzss -.-al:, of all Pe=rzlenx ;r=d-ced 2.78 szvea. Th= CCNTZ\CTOX 2nd. =kz Operztizg Cczpznjr shall ke53 -'a; -..-,, - -b,ks '--- cf ecz=';r;t aria acc,-z;l~i.-.- reccrss in L'zitei Stzczs Scll~zs, xkich =>all Se the ccztzsll5r. -.? curre2cy cf this Agrza:s:= 5tz =tsz ZECC-.-cry, tzxes 2nd cc.t.;-' . - pc~cses, 2nd in '1'ezeni c=rra:c'j f cr ~nrc~t=icn. The C~erztf.. .? . . -,.- --. Ccspzny snzll f zrz~sn :o e . sr its represencztr . j' ~onthly re sf-..c~izg o cf Tezr=leun crocuceci a:::.:.; saved. Scck re=zrzs shall ,:e -,rc,?ared Fn the E=x rey~irec =.J :kc MIXISiXf cr its r=;ress~zzcF-:t ~nd shall be si~iied Sy the Generz,': Hanaser cr by tke S;ec~t'~~ Sar?ertl Vzr.rcer cr a Zuly desiqr;a=r de~zty, and eeli-brersi to t:lt XINiSiZf =r its representative wifki..- thirrjr (30) dzys eft== -% - i i retzr?. . . e == -..e Xczt:? tsar covers tke The afcresaid Zcrks cf et==czt =the= =ocks ~nd =ac==-s refezred to zbcve, skail te rvailztls zz 211 reasonzble ti~es fsr inspactic;l Py d'lll;, ec-,?,=ri=td ,-a;reser,=atives cf the !4II:IST2?. The CCNT?!ACTC3 and the C~erttizg Cszozny as appliczble s;?z accurztely pre?are and keep at all tines, while this Agreemen= in force, the current reccrds of their respective operaticns the Agreement Area, acccr=lzg to this Agreement, - .$ The CC!IT?S.CTC.2 an3 =ke C;zratFng Ctz7any as tgplicajle skalS furxis;? the MINISiXY cr i~s repres=z=a=ive, in con2 cr,izy ,..-ir:: zpplf czble regalz.cic.-.s cr rs =he X1l:ISTfl'i cr its regrssen==rl-:, ? may reasonajly reqdire, i;?fcr,aticn and data concerning t:?ei3 respective c?era=icns ~iidez =,ils A5reesienr, The Cperziizg ccz:.-,rzy will serfom the f'i;r.cticzs indicrred in this Article I: :- -L 7g accordance with its ' res-,ective role 2s specified . in -.-,... Agreexent, U The CCX=,CTSX zr,d'=;?n_ C2erztFng C=Z;ET;Y shall save end kec-.s ?=?" a rezscatble seriod cf zF=e a reerc,ssr;tative ?or-'- -,-a ci - - - =z-d - ..$.. & - sanple of c=rcs ~nd cxtri.l;s taker: frcx trillizg yells, ~3 rs -. ..disgcszd cf, cr fcmh-~r=c,3 t3 t?e 'x'"' ..~..iSlrtY cr its represenrcri-.-= in the sznner ciiracted Sy 2:s !fI!:IST;:r'. A11 sxc;? szn3les zetzi: by the C02?TZ\CTC.X and/cr t:1s C;ercri.-.g Cc=..sar.y fcr the ?et . . .. . 0perzticr.s shall 5e ccr.s:=ersi availr5le fcr Fzscecrica at a:.: '.-- ,,T,"---" rezsczehle ti~e =y ;.., ..-- 1-2 ,.-.r tr i=s re:reser.ratives. ty =ke "T~--C-" .--.v~I-.?f I Unless =ti,er;ise zzraed i3 CZSES ~f €x~=zz~=: any rcck sazplas =ztsL.fa r2e -ZCY, sr=?ies eq~ivzlezt in site zz' q~ality s;1211, >eft=e =--c> =------=---- -A?-- r--L-.. , =e delivered. to ,,TI- ..,. \;S---..r --.-- j? Origizal rtccrts arc rr=;er',iss cf =kt GGYE?2Z'I!.,'T. They can ~'.?ll -%a >.rT8*- be e~crtaci ~i-Lfi zks ;~-rz=issFzr; =f -..- .--..1S3i srcviled., hcxev~rfl tha: ziaq~eric :a;ss cnd cz2.r t+ci vhich -IS+ 5e ~rccessai -2.i analyzed outside the 2C'r zay ke ~xpcrted ir' a zczit=z =: ccr;arr3le reccr=, if cvailrkle, is rr.ai-tzizea Fn tke ?OV s2-l . - - .,n provided =kzf scch sx;cr=s sra~l be rep=zriarea t~ tka ~,~u -. prc=;tly af%r ;r=cessi,? =r zzz~ys~s. L. . . During the perisd the CC:;T?;.CTC'i oerE=r-s ~,?e Zx~~crs*::~=~-~ ogerasi~ns , , :I tke L.e! s 1 re reqresent.zti:'es jg employees shall 5ave tke rigkt 'La f-211 azi ccqlete access ta ,. -= Agree~ent Arez at a11 rsascza3ie tiz.=s zith =,'.,e rigkt to oksa:-I:, 3 , . the cseratic,?s. =exg ccr;5:s-,aa ST.:! -,z izs;ecr all assets, zzc=r= and data kapt y t.ke CC~C CC::TX:CT@R shall ncr: = respcnsible for 2.7~ l'iakiliq resultizg Ircx :he injury =1 dezth cr' cz dzl=zgo, zo =:7e ;r=;erry =r' any s\;ck recresentazi;.es zcq emplcyees, anless =a=sed ky iie~lic~zce cr ~illful nissead.:c= =:g COXm.CTO3. The CO!iI?J.C7OR s.iall ~roviCe the UIHISTXY wit3 rcpi=P . - of any and all dara (~r.c~:Ziz?, ;?u= r.2: lixited to) geological rxf geo~kysis>l regcrts, LC:= ::d el stlnPeys, infcrzetica , .,. . , .., ,..=-. infczz,aticn in C9!TT3ACTZX '& interzretztion cr' szch data, 2zi ciL-- posscssicn. :: .: For zke cur;ose cf ct=aizi,~ ze;; zEfars, =fie ! y i; PRIVILEGES. CP TXP GOVEFJYEST ?2FBZSfNTATIP3S .. 5 :sly au=.'.;=ized represezt~tives cf the CdiZ?Jh?E:T shall. have access r; zr.3 .=.gr~eler.= .=.re3 anci to tk= crera=ic:s csziac=si t;-.trecx. S~cn repr~ser.zt=F-.-z- --. - ...c exa=i:e the kccks, regis=srs and r=ccrZs zf -Lk= CO:7T?GCTSX rk1 F.- ,,e-=,-.., ,---:-- Cc=l;zry and -eke a ro=sczcble r..;-jer =l scrveys, drewin~s aad te: ;J 2cr the sxqcse cf enforcing this Agreezent. ;hey shall fcr this ~t~3=;'.. ze ezti=lsd to make reascnz3le cse of tke zachixq and instraents cf ti:; c3::TZAClZX cr the Cgertzir.: Cz=;zny cn the ccziitizx thac no Casger 2:- izpedi=er.z to the cy;~retfcns kereunder zhaL1 arise directly or ir.dizec=l-i!f . -.ti frczl. szch use. Scc:? represex!.tative shzil be zi-.-sn rezsoxable assistrr.=o 2:- --a ,:., egezrs 2nd ez;lcyees =f tke CC:TT?-\C/CX cr tke Cperztinq Ccz~any so rkzr zzze cr' rke acti;rfti=s shall exctr.qer sr kizcer =:?= safety cr the - tz -': -,-,-.. -: =--- ,s: e -= -l. .. 3 ,, ,.,e c;=racicr,s. The CCNTZ.2783 or the Cpertring Cczzany shell cr'f~r s~c:~ r ,-~reseztazives = 211 zrivileqes and fecilities etczr5ed to its oun ez~leyees in t?.e field 2nd shall ~rcvide thein, free cf cktrge, theuse of rezsczaSle, cffice s;ace of adeqately fcrziskisd hc:sing ~hile they are in the fie12 fc:; < tke - ,~,,,se .-- cf lacilitzrizg =he cSjecti-.-e sf =?sir zssiq~z.encs. CC~T?>.CT~?:~~ ' --"; - . . shall .-.== be res~z;lsible fcr a:;. 11=--~~~, rss-:ltir.g frex -Lke 2n32r; rq ccr eetzh cf zr eenage to tke srszert-j cf tr.y such re;resentetlves cr ezFlsyet-s,:T zzlsss czusedby tke ?eqlisezce c,e vilfzl nistczZxcs zf CONTrdCiCX. : : -9 :: AL . id It is t2e Pesire 'cf ~..e ?.IIYIST3?Z and tke CCNT?ACTS3 thzt cpera=r=r.s -=we.. :.-,,,ndar be ccne~cr:ed In a kusizess-like tna efflcienc zanner: ' 1 ? . i Aminizun or' tt;er.ty-Cree (235) gercezt cf the ccr;Sir,ed salzr~ss2 and wages (exclc5ing rks lezve pay and ncn recurring bonuses) cf each cf the reoieenc ex~a-LrirEe adxi~istrative, professicnal E=<: tecknf cal ~ersczzel explcyed ky the cONT.RACTOX 2nd iti ' . .. subccr,tract=rs or Qpertting Cczpeny =hat zre residenz ~n :=sr.=?! shall Se aid Xc;;t.?ly In Yeneni c.;rrer.cy.',._ RY LETTER OF CEDIT .&&---:- .%L-=.. ---li: - 3.e: Cz= ~==zcc25le Letter cf C=zr-ii= 50. . .. =./ ,- --;SF ,,,,, sf scr zli~.-.r, (!:a=s cr' C;=EZ~] . . - I,,-?..--=: --- ., , (k~ztiz~ftor zeforzt2 Z3 2s tzz kb..---.C-.-.-. , , se ::zr==y ~s~z~~is~ ---:- :-- . - ,.., = ,,,evccz=:e Ltr~tz =f frt5ft !;c. i-7 yc-cz a--= ,crCT ~CZ -.-= ---,.-- -= L?SS -s=---:..s -- b*.- =...---.L -- . =;.-=!-I-. - -.. ("t=?= ~~~ztriye 32~~") 2.1f dyr .- ,,,.., -- -- a= rke eerlitr sf sztk cf=e as cke tc=tl zed:crlcx xzeer ;trt~rz;5 2 ZsLcv e~ztls the ~JOCR~ cf tkis -. Lcr=gr rf crsdit cr six (6) Z.CE~~=S EICeT =:'IS €~d CZ - LL ~..2 - ~3l~;r- .-:%I , 3rr:r.4 ..--=I i.-= - - -------~-ua --,-re -..L-- \r..r ZIIC=':Z=LC;I S?~=i.lrj .>CZB€Z€E~ (2S.Y) .. . "./ --- """ ders= - =..- -= -.. =€z y=xz :is ,t;c=, -L -, - !.:c,=ks aftsr ths Effzczi-:= 32~2 ;the ezi C? =>e c;x (Z) ----L zzieizl E>:slc=~=i=; ;SZ:=~) 21:s -- - ...-.,b.. s I 2s Z~C=ESZ~~, .. - . t~ai.-.s= ycxr sF;:'lt frrf', ra;;~ =X :sf 5s tsscr:=ea In =.'.= f=:" . -. -2 zXi:--;h - ------- C.. ,,,L , c\r,zc..=.a .';BzOt=. 2. =edcct'.-- -.. -.= ~=~~~~ ~-br~~:~y= ~~-~~:~~~ pbll 52 ==ez=s...i ~~==~~~:==~~-; - . . ky etc:? - ---.-- ----- r...c,..r =bG~=a 1.1 yccr si~zed E==:CSB, rs tescritea fr: - r>e fcp, cf z>ih:=:= .. . II ir.2~ "req:~st") sit: z?.e 8 a=ccz= cf tk2 =====ti=: 5~~525 =>er=iz r--2 c~rzi~yi:g s!-+zt,/?. (ii) tke ?!I!lfSZ?:i 5Fd .?Ct cSf PC= t3 t2e reqzest withi,? sixty (60) tcys aitsr such deli0rery 2nd instxcting us & effscs tke rsc=cricn stated in said reqcest. :>is Letter cr' crzdit ;ill be valid :xi1 the earlier of : a. Six (6) zczc~s after the end of the Initial Explcratizn lericd cs tescri=ed in tke Trodccticn Sktring Agreenent. rrL 3. i,e ecte xken tke tctal zczzt cF tke Tstter of Credit . - has teen drr>';1 cr red'tcsi as SEX =~t Fn 1. 2nd 2. abcve. ne heraky enTtge ;;it3 yoa =kt tll Crafts erawn by you in acccr2r.-,ce vith =>e tezs cf -" ,..,s Latter 3f Credit will =e 6;1ly tczcrei 2y --s ;-i-L\i-7 b ,on (10) <:,eys of receiving ycxr zctlce. . . - -3:s Lstter =f craiit is =-=:fc= t3 t>e Y-J~~=X c.~stczs 2nd Izactices fcr 2oc==eritary Creiits (1432 ,?evisic.?), . . Zztsrxeti=zal Ckszr,"er cf Cc=srce Iczlrcztlcn !;o. : 00. . . .---=- -L - ,-I==,= je ,&;ised ==rz ;-a E Z; . e et=-;a n . . ==fe=s~c=d Lec=zr =f ~rfdit zxd t::zC: (ye=e cf '-----a- ,l p-*-- - :. :i -. . . ) jtke -~C) kt5 zs-L ccz.;lc,rs5 . . - its c=l:=rrls:s 1r.5zr =?s ~rrdxtzizz 5::rzizq Aareezezr, - !:OTICP C7 3EDGCTZ2Y C9 LZTT93 C? CEDI" SO: (!:6,2 azd address c? -.. -:- .- - ec;li+g Irz=vc=:tl= --...- --- -.. - ---=- - ,,,,,, sr' crtalz) . . by t.42 CC::T7-kC7.L?3 =5 f:e ;;crk zcrro-s~cxcizg to eke . . -.-a ,.., ,-...=- ----l tL-~n --2 :- ---..-- = .,,,.., st~-Led >el~~. Yc:: Ere her==? ZC',~CZ~ZE~ 2zi F.'?s';~:c='LB~ t3 . - ---..- . . . . , ,:,,, L.,e ,,,.. t cr' Lecttr 32 C,-s~=:r 3'1 tke EZ=:Z= =i L'SS =--- -- -7C=ifiT "- -..- -d &..e CE:Y?-4CXX cr' =his ==&:C=~Z:. . . 1.1 .\ Zoizz Yeizxz~ Ct322r.y (kersiz referrsi t3 as the "C_=erttLz: - -L e Czertzlr;q Cc=;a.-.y -:ill c tcs Ec- L-,-L-e~ : . .: : ky t::~ =rcvisiczs of '3.e X~reazenc, end this Ckrrcer. - -\r 1.; e C-,erati:g Ccsczz-J - - s:telL r=ze z ~xFsience cn tko thirtis=h (30th) dty z=--- ,,=, she 22=2 cZ z Ctt:trciel Sisc=v€r{ . . . . =Z Oil zs delizes 1; Xrziclt 5 cf zzs .=.;ZCCZ.SXZ (::less XC?? ,-.--= = P--- - ---a 3,d =:'.P_ C-.ll.,.~--=. ct-=- C=k5r:EX;CYXX,?X C' YE- = cCxz;-Yy b " -.L The Cperztlzg Cc=-,z?.y skzll ccnduct tke Zx;lcraticn end Zevelcgnent cperzticzs pursuznt to Work 2roqrzcs and 3udsets apprcved in ccc=rdznce with the Agreezgnc. The Operating Ccz~tny shcll keep ecccunt of all ccsts, expenses end ez-~enditures fcr scch o~eratfezs cnzer the tex.s of the Xqreezent ad .:.nnex "F" =hereto. 3.; The Cseratlzg Cc~pzzy shell nct engeze in 2r.y t:si;..e,es cr zc- . '--i -- Scycza tke ;erfcrz,er!c cf said ,.- -,,dertake EE~ . . ccerz-li=~s ;~rf=z.=d fcr r:s KC2 3r.d t::e CCNT?>.CTC3 ceder the Agreaxent, unless stkeriise ezrsed ;= ty %OX3 n t2e CCN'EG.CTO3. . . 4. The C;eretiz; Ccz;e:y zend els:-.sr the CC!:Z?-;CTOX cr tke MINIST3Y, or Sc-th, racy aqrse azcng ther.selves ccr;c~rr;lr,g . . ,necessery cr zesirzble ~r?ce~~ras for cc.-,e:czizg t1p.e ?e=zcLexx Cgerzticzs. - 4.5 Xhen c~n1';cti:g the Z~trcl~cx :!;freilc=s -;ear ike Aqreer,c,nt, the Ozeratizg Ccz.sazy shell ke-~e tke ~rivileses szd exe,;ticr.s -2nd =>all bide ky t::e r=~~lcCic:s axci r~qcir~zierits ;rcvi:pzndit,zes i~czrred, exd ;eid t:~ tke Operztkg Ccz.ceny to czrry c~t EZ~ cc.';fzcz ell Its Zx;?lcraticn end 13evelc~;r.ent =;=ra+ic=s shall 3e fizezced ty CC!JT?'J;CTCX (or, vith ras-,ect ta a scle risk grcj~cr c2 !-:C?X, ly tke XC!C.) end recc*:ered 'by CC!;T?-;CICX cr >:5'C!S ES c!ie csse Zey 3e frcx the Ccat Oil zccczdiz~ to tke 2~~~21 !xt~ec zrsp~rei Ly tkt C?erztlzg Cczszzy zzi st;rc-.-~5 2~ the :card cf 2irectcrs a2S rzrifFe9 Zy tke MI.'\'iSZEX ix ac==zitzce vi=h tke .\qreaze;:.': E:S Article 9 cf this Ckrrter. 6.1 ike Cger~tizq CC=;E.-.:J ~5211 .~ct cia czy rizkt, Title, Fztezesr .: 1 . or esttte i3 cr cnZer the Apree=ant cr Eny Sevelcy=e?t Area - - crearai tkereuxder cr ia any sf rke 2errcleuz ;roduc:.':f=x frcx ii any Develc;=ent Area therecnder cr in any cf the zssezs, eq-ui~zenz cr ccksr jircparty cbtsined cr xsed ix ccxecricn ,, . . therewizh, and skeil ncc te ck1i:cted cs a ;r:zc:sel fcr tke .. 3 finezcizg cr serfcz.tr,ce cf a:? sf tke d*--' of eitker XCX3 or tkt CC.'V'T.T.'zCXX ,,,es cr c3li5atic:s Se fazccicnizg as En Crerezcr xly. 11 Zperzti~g Cc=,Far.y shall CeciCe, tzke zccicn CT zake a ---- - prcpcsal and tke like, it is cnderstocd that such decisicn or is t,3e result cr' the eecisica cr judgenent cf the j udFent MINISEY and/or CCNT,4;rCTC3, 2s zay 2e required ky t2e Lsreement. 7.1 The Operatixg Cc=?azy shzll hzve a 3otrd cf Directcrs ccnsis=lng cf aisiit (8) ;;e*ers, fcx (4) CL YSCX shall ke F? 5 Zesi~~.zced ky the ! . The CCai,=zn shzll te desisnatad ty the HIXIST2Y end shall also be a Kanaging Directcr. The CONTRACTOR shall ,? Cesiszete the General VzzEger vho skell elso te a Hz.rlagi;lg ,: .. 3irectcr. &a 8.1 Yeetiaqs of t!ie 3cerd of Sirectcrs chzll to, valid if a sajcrity of the Directcrs ere ;resent end any tecjsicn tzken at such zeetin~s =csc Scve the ef fi-~etive vcte cf f iv (5) : ' .. . cr zcre cf the 3irac-Lcrs; trc-:r=aa, :".czzb9ar, t?ac any Direc=cz 3 zay 4e rc~resez=si ~zi vcte ?y ;rcxy :I-;en =a ~n2 exqrcisea a =y enc=ksr 3irectcr. q 2.2 X11 rezsc;la=le cccts t:d EX';E:SES cf t:lt Z~~EZS cf tke 3~2~5 .: .X or' Direczcrs ix ~sr5=,~.izg their dztizs as r=a?kers cf ti;e u 3ozrd cf Directcrs skrll te said 5y CC:;T:d.CTC.? 2nd re~s-~-ered 2s Gs~reting Zcseases. No fee cr ct:ler ccz,~e~satic~ shzll ke Q .: 3 S - LI. _said to tke ze~zers cP tk9 Scerd cf ~~rectcrs fcr ~,.e ..: BB~ 2 ~erfcx.ar.ce or' their dutifs 2s ZE:~Q~S CL the =card cf Directcrs. g 9.1 3carC c2 Xrc-ctcrs decisic;:~ shall he rttif isd ::J tke !AI!?ISiEX cr his re=reeeatzti;-e vitfiix cze Kcnth frcz tke dtte cf recei;~ tt his cffice. 1.1 czse cf :o ra2ly frzz the !E;I!JISiTX cr his regreseztttive 6cring valid tad cc;lsiCered rttified -. 10.1 The Operating CczFzny shall esploy sersoznel ;?its fcreiqn zaticnalities to czrq cut the 2etrcle9a O2erztioxs in czses where there is a need for specialized technical persoxmel which can not be found uong the Yereni perso~lnel. The Operating CcnFzny shall, spcn its estzblishcent, set a scnedulo- for specialized traizing of 'i~neni gearscncel fcr replacing fcreiqn perscnnel. S~ch sckedxle shall be scbnitted to the 3czrd of Directcrs to b.e decided c3cn 2x3 k ,,.en t. sutxitted to t5e MI17ISTE3 fcr his ep~rcvel. 13.2 -\11 Yeneni 2erscz:el ~n2lcyed by tke C;erztizg Ccr.;any shall ke paid salaries, -..-aces, benefits, 2nd allcYazces ccz;zr~ble to the cczpensztion ~ald to ctk~r '.'e-.eni eerscr.r,el xorking ix &L &,e Petrolesz @;ertticzs in Yezen rho kave ccz.;zrable skill, -.educaticn, aiid experience 2nd. ~ho 2re ~srZcr=.ir;g services xits ccmerable duties 2nd reszccsi=ilities, cr sx5ject to tke . - . . - -ie~eni lzbcr legislaticn zs;l~cz,cle to zke 2ei~~l~:: . . c;erztFczs xhich ever :s zetter. ARTICLE 11 . q .. . . 11.1 Ix all ctses, t5e C;srztizg C==..;zr.y s:-.~ll q:-.-e pr2cr:ry 23 lccal c=ztractcrs ~zrl to Icczll:? z.zncitcz':rea zzterizls ~ncer the tees of Ar=icle 26 of the ;.greez.ez=. 12.1 Tke CperttSzg Cc shall cltai-. =:le ;r=;er izs:rznca a~air,cc Icsses and d~z.eces ~Sich rr.2~ te ctxsed 'zy exalcsiczs, as vell ts ot>er tyces cf i2scrtzce 2s kecczs Z~CESSCT~ azd ac~rzved ty the 3c~rd cf ~irzc~crr. ZEOOL.XTICSS ... fl 13.1 The Sozrd of 2irectcrs =>all Etcrcve t:l= req:ltticzs cc-;erir.g G the tees ~nd ccndikic-s . . cf ez.~lc*~~,er,t - - cf tke cerscxel cf tke r 7 Operzting Cczptny ezplcyed dir~ccly ky =he O~erzting Ccz;~zy -. - cnd not zssi~~ea thereto =y :-:C:.Z cr t?e CC!?T?;.CI03. The Sozrd ~5211, in 2ce cczrse, dr~v :? the 3y-5zzs or' tfie Clperztl.-.g Cczi;azy 2nd such 2y-lsvs s.'..all he sffec:i*.-e cccn 5eing ;;izh the srs-~isiszs cf ;.r=icles 3 and 9 hereof. 13 Cgerating Cocpcny shall te The durction cf duration of the Xgreenenz limited to a 2eriod equal to including any renewal thereof. ?:either C0NTR;iCTOX ncr the HIziIST2Y sfiall assisn. sell. cr cther~ise transfer its interesc in t2e operati ag 'Cczipany to ,ection with a party not a ~crty to "he Agreelent except in conn acccrdance an assignzent of zn iaterest in tke bqreenerx in vith t5e ~rcvisicns cf tke ;.greeae!it. 3ATICL3 15 q 1 TE?-VISXTION OP TE3 CCV52hhY 13.1 Tke Cparzting Ccr,~ar;y -dill 2e ~e-,.izaizd ;;ha3 che Agreenent is te=instad fcr eny reascn as prcvidad fcr %erein. .: 1 XXTTCL3 15 ...I 3 b. K03Ilf CATICY C? FX3 CFJ-ZTSX 15.1 ?ke MPXiSiX'f and CC!?it>.CTCX skrll have t.40- rigit ky z.ztxal agreenent to xodify cke tex.s cf this ckarter Frovided t5ac such r,o8ificatFcn *;ill zct be in ccnflict vith the provisic~s 73 cf the Agrae=act. :: . i.4 XIXISTRY OF OIL AX3 U-TZX.L XESOTZCES -.-. The name of the operzting Co,-.?any Asreed cpon by the MINIST3Y and 9 CC::Z&CTOX is : - b , i' HISZSTAY CF OIL MD KIlZ?&L RZSOURCZS . -a , . e definiticzs czszElr.ea 3 re 1 cf the Froducticn shzrizg Xqre€z.e:t s;:zll E;;l;r r3 =his Xccz~;;cizg ;=cc&---= -, - 22a hzva rke seze :eexiz:s. T 1.1.3 .';o charge ri.=LI =e zzee =r actc,=-,ad fzr t:-.e ;E~=c~E:~E 7\ A C;ereticzs zz125s I? is rel~t~.? ~o 2 ;err=l~:z .. , -- ., - -- . ~;erzciczs c=.rcrf.2 -a -..= .-.fr~~z.fzt. .y ? -L i,,e CC.';T;-=.CTCX =:?all, re a . - rt: ,,,e -7 13 of this --- - r.S;.L, t3 ;;hich tkis .ZLr.z€x is a ;er= cf EZ..~ hefsre . . Zc,--,i;;g =:ye C;ere=lzq C=z;~zy ecz=rii;..g to Article 6 cf hL ,..,s : .;cre~z.er.= rer.Per t= z::e XI!;ISTZ'r zitkin thirty (20) dtys after tka ezd cf ere? Celfz5er Guercer a Stztezznt cf 2~3-4; ...I ..b---- ----2 ref lectiz? 211 c>arpes cr cr=diis rsaatei t3 tke ;~crziaz, C;zfz=:=r.s fez =k2 gerizi, stl,:arisei . -. . .. ty ~r==.===i~== C~~==~Z:;~ZF~=S :==~ctti-;~ cf ~at-~re - - tkerecf t,-c,=r:;s= -.,-i=:7' e:-.e --..,..c,, C----- -9. cf ~llch i3fc~.t~icn cx a c..-., ,...,, 1 c,,.e - - 2.. ttsFs fr=, =ke SZfstzi-;a 2tte 2s yell as Yetr to Ztt~. - 1.2.2 :sllcvizg its f=r,ati=-, =ke P-c--=b:-- -=-- - LI..~ CC--- . - ~:'1211 raxder to 2s !.IC.:.3 ezc =::a CC!;T?-.CZC3 vic5in thirty (25) cays efter tka 2 cr' c Cczr=er a St~tezfnt cf . . Cavelc-,:ezc er.3 Zxplcrs=i=x ec=lvltic,s ref1fcri;;g all ckar~as E credi's rslztsd =a rhe Zevelc;z.ent czd Ex-~lcrzticri c;=r~ticns fcr thei C-q=-A -,,Ler s~::.xericed =y a~crqritta clcssificscit=s izeicrtive cr' =Fie net\lra Ah ,..ereof ex-c~;= tk=s+ iterr.s cf cc=tr=ll~=le zet€jiel znd ..-..C . . . el chzrgfs ac', crez:ts shell 2e datsilec.;, / /C C3erat1:g ~c,c.dy =.ha&, ,s &as-- ---- -- ...,.., ,, --.- CC:;TydCzCa !/czz>iy czsh czils c=-~eri:g escizaced fatcre expenditares ~csaraing ta :he a~zrcved Kork Irogrea and 3adqt=,t. "e sstteruent cf esti=z=ed ex?enait;lres shall (30) days pricr to be sent to CONTidCTCX at lrast 'hi-" LII-- LJ the 3egir:ning of each .;':arter, tnd a co~y of such statement yill be transzitted "c the :/INISTXY. The estineted ~x2enditures t!~ =e zaie in each !-xent f zr lie5illties izcxrred Curing pr~vioes Ko?i=ks. The estizate fcr tke firs= such Xcnth , ,,on, cczs- ; ---'a shall, at the C7erttcr1s c:" LI~r~- a resest fcr -L acvznce. r,.a estizat=s fcr th= secczd afid third succeeai.-.g Ikztks shail 4e ter.t~zi\-e cnly and zay i=e . . r L revised in tka su=seq:e:z s~=:,:zzal. -..e afcresaid stetenezt shall. indictte z::e czrrszcies in -*-kic;l suzs are needed fcr zke Feezziec, :;srtzi=zs. After the first CCZZE~~~Z~ Oil 3iscc-:sry is zade, fcllcxlzg its c=zir.g Iz== ei:ist~:ca 2nd zcc later tktn t>Ae L,c.,L,eth (2Gt::) day =f e~c:? :.:c,?t>, :fie Cper~tizg ---- *-.I Ccz;ary s:-.eil ;;rxis:l zs 5-.2 CC:.-.---.LAC~ ---;:o vill sec:=e the finazciiig cf t11 r~.~:Frci ~zc2r.t~ fcr 2::s Csevelc-,;;.e;;% bL . and Zxploreticn rc B~riz; t:ls r of LAIl~ . . --c,...2ts cf its tctal cash Xgreezi~st, 2 ~rit=~x =c-'- -. . . req~i=eaei.t fcr e>:;cr;srt-re fcr tke flrsc half ad tSe . . seccnd .".,=if cf the s:cc=~=:zq I.:cr.t:1 e>:;rsssed in L';.itea -- a ~-,;=cyed 32Cqet. States 2cLLtrs h~-.yiz~ zs;zrf -- -1.- ' . . -- c,'C;I ec' c...GC s ti-:s 3 scx eny cask . .- ax7ecte.i to te as-- \.cil~t~a =!J t:1s .:p.eratizq Ccrr.~a;ly tt Kc~th end. I~y,szt fcr =::a Ep;rc;rrete ;dried cf such Ficzth s;ieil te :eka to tka corres;cz (13th) day cf the :.:o;;th . respecti.:eiy cr tke :e:.:c f~llc-~i,; =:sizess ezy, ;I such dzy is zct a kxsizess CE~. 1.2.4 In cese ,'::5s src-:iSeci ty J'he CC::';F..:CTC; fcr t;ke civen Xczth are xc= sufficie:= za ccver =he c~sh rec-~ire:ezts (uit!iix =he lizits cf t::2 I;F~c..-E< 32Zq~c or txt5crized overrzzs) , tke O~eretizg is;peny sk11 trtzsxit to tke CC!;T?&CTCZ sits a c--'. ,,, .fa tke :.:I:lISl;'J s\;~?lezentary A. stztezents skcvizg s ad;;"-- 1 ezaczts L Se advznc~i, 2~2 the dete t::= 5~~2s Ere re.q:ired. 1.2.5 Cperatcr =?ail :i:ee? rec=rds c: 2s zt-.vtr;ced ezd expcneed in all ccrrexcies 2r.d sxtzit a stetex~zt to eack ;arty kereto ~hc-~izg szch zdvantes ~nd ex~enditures. 1.2.6 Within thirty (30) days tfter O~erztcr shall schit to atch tfis end cf each Qcarter, ;arty kereto a statezezt . . ... of the charq~s a3 crc=:rs (1.;c~-~irzcj 2zy calr;;.er,t for liabilities i;l.czrred I:ring ;r=viccs Quarters fcr - - Zxplcrztic;?, e;praisal, I~t'elc~z~.azt 'end cther Fetrolecx O~eraticcs ix sa~d Csertsr. Suck szttez~zx- skall te ix Yeaeni czrrezcy and Uxitst Stztss 2ollars .!! non-unrtea Scarrzv Y-~~~~ .------- Dollars. 1.6 Precedence of Documents & In the event of any inconsistency or conflict bet-, .en the 9 provisions of this Accounting Procedure and the provi~ ions of ,, ,' the main body of this Agreement treating the same zubject differently, then the provisions of the main body ,f this I Agreement shall prevail. t - i 1.7 No Charue for Interest cn Tnvesrzent Y Interest on investaent or any benk fees, cha. jes or ,3 commissions related to any bank guarantees to fin^ .ce the Petroleum Operations shall- noc, at any time, be ch; :ged as e recoverable costs under this Agreement. f " 4 The CONTRACTOR shall alone bear and pay directly dur-ng the Exploration Period or throu~h the Operating Company af-er the Comercia1 Discovery of Oil, the ccsts and expenses, which costs and expenses shall be classified and be allocated to the ac; ivities accarding to sound and generally accepted accounting princi. les and treated and recovered in accordance wit23 Article 7.1.1 >f this Agreement : All direct costs attributable to the acquisition, re: zwal or relinquishment of surface rights acqired and naintc lned in ~ for the Agreement ~rea .- force 2.1 (a) Labor and Related Costs Salaries and Wages of CONi,3ACTORt~ or Operating C: :panyls employees, as the case r;ay be, directly engagec in the various activities under this Agreement i: :luding salaries and wages paid to geologists and other er :loyees who are temporarily ass:,-ned ts and ecployea 3 such activities in Yemen. 4 2.1 (b) Cost of living and hcusing allowances, anc other customary allowances applicable to salaries and : 2ges of expatriate employees chargeable under this Anne:. . 2.1 (c) cost-of expenditures or contributions made purs .ant to law or assessments imaosed bv GOVERNMENT authori'. .* which are applicable to labor =a& of salaries and s. :ges as Annes. provided under this non-united States uollar ax;enaliLiirs cu biAA L~U JCQCC~ Dollars. ~@ :$.i A .. 1.6 Precedence of Documents In the event of any inconsistency or conflict bet; .en the id provisions of this Accounting Procedure and the provi~ ions of the main body of this Agreement treating the same ;ubject differently, then the provisions of the main body ;f this Agreement shall prevail. A 1.7 No Chzrqe for Interest on Invesczent .c 2 t Interest on investzent or any bznk fees, cha. ,es or .., commissions related to any bank guarantees to finc .ce =he Petroleum Operations shall not, at any time, be chi :ged as 7 recoverable costs under this Agreement. + J ARTICLS 2 7; 7 3 COSTS, EXPENSES 2N3 ZXFZNDITURES '1 The CONTRACTOR shall alone bear and pay directly dur-ng the -. j.J Exploration Period or throuqh tke Operating Company af:er the Comercia1 Discovery of Oil, the ccsts and expenses, whic 3 costs 7 and expenses shall be classified and be allocated to the ac: ivities i 1 according to sound and generally accepced accounting princi. les and treated and recovered in accordance wiL5 Article 7.1.1 ,f this Agreement : -i.-. . Purfsce Riuhts .-? . . .., . . ,. * All direct costs attributable to the acquisition, re! zwal or i 4 relinquishment of surface rigkts acquired and aaint: lned in force for the Agreement Area. ,?I . , 2.1 (a) Labor and Related Costs Salaries and Wages of CONTX9CTORt s or Operating C: zpany s employees, as the case zay be, directly engagec in the various activities under this Agreement i: :luding salaries and wages paid to geologists and other er :loyees who are temporarily assl~ned ts and ecployea 3 such activities in Yemen. 2.1 (b) d Cost of living and hcusing allowances, anc other customary allowances applicable to salaries and : sges of expatriate employees chargeable under this Anne:.. 2.1 (c) Cost-of expenditures or contributions made purs .ant to law or assessments imposed by GOVERNMENT authori: :. which are applicable to labor tost of salaries and b. .ges as Annes. provided under this b I* \ Ik I I - &a*/ . , ! ',L XO3 esz~c-~ad czsz 25 ESEEZ~FS.?~~ ~lans xhich :ncl;;le custc=ary becefits bcr €=;L=~ees such es grcq li'e assurence, hcspitalizaEicn, aensicn, retirexent, stock purchese, thrift and =char kezefits of a like nature k-hich are apaliczble to la5cr ccsz of salaries and vases of expatriate employees. aild for Y anployaes, all as 7 chargecble un8er this Sinex. Severance Fay will be charged Q. at a fixed rate .tpplied to zzyrolls which will equal an amount eqaivalanc to e ecr:el liz4ilit.j for severznce cayy,ec'Ls es reqxired :.leer 'r'ZYEl1 lebcr lew azd CONT3ACTCZ1 s 3 established gclicies. 2.3 Yaterizls Materlzls, eqaiz=ent an3 ss~;lics ;srchzsed cr Zuraisked as such t;t CCCC dir=ctl;t cr tllrcu~h e - Cperztizg cczyezy. YeterFal, ~qzF;zr:t ezi sxcslits - - ;zrc::zsss =>all be ck~r~e5 at tke ;rice 2eid kjr CG:JTXZCTCX cr t:'.rct;g:? =ke C-,err-Lixg Coz.gz~y, afttr Zzccci'- ,-,n cf all iiscc:r.ss ~c'L:zlly receit'eii. Such z':rc:-,art-s skall bs cc=clxCsd thrcq:?, CC!???-=.C:C3's Xaterizl req~ired f=r ;strzle-:z. Cp~rrti:zs skrL1 4e ;zrckestd directly xi=e:svar ;rac=ica3la1 sxcs;= =;tar: CCIZTZ.CTC3 zey after the :lc:? ctzzct tt clzssir'ied as ccz5iticn "3" i..i . . -, hi is ser;icea=ls fcr criginzl f.;ncticn =zc if s.~4s~~~=~~liy --- --G*-l-l - ii ..*L. S~&LC--Q :cr ----I. ,tLr..ditL=:izg, stall 5e clzssed as ccnditicn sktll te priced ~t a value . . . . I. cczsensurcte -:it3 tzs zre. ': , , c0NT;VICTOX dces ncr: zarra~t -,ke =aceriels furnished keycnd the dealer's or nanufacturerls varrenty and in case of zaterial, credit skall not be recorded until defective' justsent 52s been received ky CCNmCT02 f ros zianuf actcrers ad cr their agents. The COXf3ACZ53 cr c2eratir.g Conpany, es applicakle, shell ensure t.L.2~ zaterials ?urc!?ased are dealers cr zaz'~fzctcrers in ccccrdance ;;it3 warrantedty the good Fetrcleca IzZcstrf ~raczi=es. .:? Trans?crtctitn cf erslcyees, eczi;z.cnt, zicterials, 255 suglies .?eceserry fcr tke cc;;dz== cf Cc!\'TXZCTCZ1s cr i* Operztizg Cczpazy I s acti-~iifs, t3 5::~ sxtezt ccverc? :y 1 esr~5lished 2clFcies of CC:;3XCZC3 vill includ~ kct ;;ct k.e .. limited to treval €i-~enses fsr ~z.;lcyees a:-2 =:=sir r2zllles +. .' to and frta =:la e:alcyeels ;ci.-;t c5 sriqin st tk2 tize cf 3 ern~lo>zel';t, ~t tiz.2 cf s~;tzztitn zr.2 fez iveceti~zs, zest leaves ezi trtvelizg ex;c,zses ftr sylcyees and t:7=iz faniliss izc~r=a5 2s a result sf ---- c-c..Sftr ~ZCX CZ2 ~ccz~~c.? to anctker. . . - . 2.3 (a) ~~teifs EE~.T:=~s Tke ccs-L sf cczsxlttnts, z=z~racz services 2zd c=ilities =r-c*-v- - 2.--- -- - .- _ , ,-=a A;,.., ~1.;-3 ;~~=is=. -. 2.5 (5) Ccst of se~~icas ?arZ=z.za - t::e XIX,'S?,?'i cr Sy , cr its Af f Flia=sd C=z=zzies, ix ftcilities iEsiCe cr c..- - ~--ce .= : - "-3 :zLE:T. Z:.ssxlar, recurrizg a;-.d rczti=a se-micas, scc:? es ;rccessi.-.,- seiszic teras, izter;rc-tiz? seisziic, geolcqlcel ar.5 cr;qizesrir;.j dzta a.?d/cr c2ar -. ~nalyses, shall Ze ;erf=--ai ezz cz~r~ed ty !.!I:tIS='i, CC:;T?..:CIC3, cr its .\ffiliatai ~crr.geniae, st a ;rice qregd to :'J CC!:y>-;CTCx ;!t,i !:-,er;oc,s zecesszr;. rz rc-;lzce cr repair Ztz~ses -. cr lcsses izc:zrsi k? ;Ire, flsci, st=,-, theft, ccciZent cr cny st.",er zt:ss === c=~c==11ed ty CC:;T3AC7C3 tfircqh the exercise cf re2sc:zble diligence. CCXiSCTCX or O?erztir;q Ccnpany shall furzish the ?lI:JISTXY vritten notice of dzmases or lcsses inccrred in excess of Unitad States Gollcrs ten thous~nd (U.S.$ 19,000) 2er occ~rrence, 2s SOC~ 2s r;rzctic&le alter re2crt cf tke seze kzs tee.? received ky ~oNTX~CTC~. The ccst cf a:? ;:klic lie=ility, ;r=;=rt? dzztqe and ctker insurcnce aqzizst iiabilitiss cf CC::Y?ACTC3 or Cgerztizg CcmFzny to their czglcyees er,i third perties cs zay 5e requlro-d by tke Lz~s, riles czd reqclrsicr;~ sf tha STAT2 cr as the Farties kereco nzy EGzee uacz. fke ;roceads cf ezy such insur~zca cr claizs collzctcd ~2211 to, creditsd ecaizs= ;?etrclecx C;erztiz:s. I 3 izszrzz=e is carrisd fcr a -,ertic:lzr =la:.:, =gltt,e.i ,==--*- ,-C- '1 =I.==..--~--ss ------Si &-..-- i~c2r~ed EZ~ - said 2:: CC:;Z?.-=.CYc? =r Cserc=i.-.q Ccz.;z,y in settle,-.ezz c2 zxy and 211 Icsses, cl~i=s, farr.z;~s, ~-L~F.cT.~s, ad ~zy c->cV La--- . . expensos, ~r.c~xdi.-.? le~alser~icc,s, s:-.zll $2 czociiteci ~~zi:sz letrclecx C;sr~titzs. -i- . 2.3 (2) The ccst cf strZfi.-.g 2x2 =ai:tor.zr.=a CG:>,=-'.CZC3's 2% tke c- =S-;Lizg -- - cc-T---- . ..-,.-,. b ...- =..: s kez2 2f:ize :z :z.--z.7. - *. 2.3 (5) Czz3 cv~r:le~i E ZEC~~L~~SS s:th as shcze 5=se, . .- - rr.~~~:7~~s~~, ;:~t=r systez.~, rce2 sysze~s, szlzries EZ~ ex;e:ses cf fisl.5 sc;er.-iscry ;zzsczzel, field clerks, - =--A- L~..L~r = czker re ~z.=tc-.-ses - izeirectly serzizg cf a .;gr%~=cnt Arar. - All c=szs 5 e>:;s.-.ses oz l,,zc.L--.., cr Leqtl ser~ices . . ct5er;-ice :ecesszz-y tr e>:;ecrz:s fcr 5:s ;r=tecticn cf tkt Agreezenz Xrcc, it res~ec-L to '+iv .. 3 czrzies ir.cl'zdi.-.g cttcrzeyls fees ezd e;:;ezsfs as ::er~i:cfter grcvided, i ~o~et>er ~rith 211 j.ieqz.ezts cti-zl.r.tf ~~ti:s-L the Zcr.cF=s fieretc: cr 2r.y cf cn zcctzzt cf tha Secrclecx C?ercticzs tnder t>a ASr=,zz.zz,. zzd e~=,zl S>:;JZSES izczrrcd ty c.'I~ ?arty cr Tcrtics :'lfrct3 in setzri:; G-;if~.-.cs fer the ;:r-,cse cf eeiezei~q ~gzi:s= any atticr!.cr claFzi crcsec;rtad cr zr5ed cgaizst the ;etr=lr-~x 0l;eratic:s cr zkt szSjecr zetter of tke Agreezezt. Zr! =ha evazt ac-,ic:s cr c1airr.s reszrdizg tf== protecticr! cr' iz'csrc-sts 5ereczCer s:-..211 be kentiled by tke lescl sttS cf cza cr =ore cf tke lcrties kereto, a charge . .. at a rate cc~:ezsx,-=,ze vith ccst cf ;rcv:cxg such =an-ices X:J te z~Ce to tke 2ezrcle:x r>*e CCYF-* . I~-.~,,.s ---- ' s cr C;erz=ixg C=:;znyl s aciainistrzti-;e overhead curside ! z,;plicz=le to the Zetrcleux Operztiozs uaZer this Agreenezc shzll Se charged Qcarterly at t!Ie cercenttses of the tctzl of Exgloration Expenditures, Develo3nenc Ixpenditcres and Operatiag E-enses for the Yezr ("Totzl ~xpenditures"), as specified kelcv: (a) 2% cf Trtal Expendit-:res not exceeding one nillion Unittzd States Dollars (U.S.S. 1,000,000) (2) 1.5% cf Tctzl Zx>er.iit'tres in EXCESS of one ~illicr! United States Dcllers (3.S. S. 1, SC3, COO), k~t less ther! 2i-c~ zillicr; Yr.it~d Stac~s Zcllers (U.S.$. 5,3GO,C00) (c) 14 cr' -?ctal Ex~er\.eitrc-s ir! ~z:ctzss cr' fi;-e zillicn Gaits3 St~tes 3sllzrs (U. S. S . 3,200,300) knt lass AL -- . ,,.an ten =illicx :,r;~tad Etstes 3cllers (U.S.S. 10, CCO , 230) (e) 0.5% cf ~ctzl ~x;ezf itzrzs ir: excess cf ter! zillicr! F-3 . . Unitzi Statzs 3cll~rs (U.S.S. i3,0@0,000). -- : LJ . . . .. .. 2.13.2 Xo ctker arrect chzr;ss as s fcr CCNTX=CTCZ'S .-$ z&inist-=- ,a,,, :.-a , cvertee5 c~tsile Yz!',I!J ;ill be ~psliee 5 aqzinst tf;e ;etr:lecx C;sraci=zs. Ixer.;les cr' tke =;ES i d . . of ccsts Cf::I?-1CTZX is i=cxrri=? c.-.ar;izg kerr~r.far ,.Le 'Lo eci'..' L,s -2 - .-------- -..-=; ,:.e .-.r,==...S.,L ~:a c=-isrei ty 7-l > said percenttscs era:- P . ,. ,_1 . . (c) 3:~rc:?esiz? - cc zztsz~z~s, eq~i;rr.en= a=5 =us21 ies (2) Explcratizx end crcd-zcticn - 2irecti?~, aCvisir;g a>d . 1 contrclliz~ tke az=ire crc j~t= I . 'I , - . W . . (e) Ctker da;ertzezts s=c:7 ES Is~zl, ccz~traller sr.5 '" -. ... . engFr.eeri=; ~hich c=.-.tri=zts tize, knc:ls5qe ezf -. g -7 - (-;e=vtic-=. -L ex?erie:=t =O t?'.~ Z~L,----..~ -..B y ': -. b f creqei.-.z '- -,=s - xcs ;recl=fa ckzrzizg fcr =rret= S..'- se--ices x:Z - L--~srzsrz;?s 2.5.3 end 2.9 cf this Article 2. "7 ~. 2.ll Taxes 'a& A11 tzxes, - CC!?T= CTCX .;qreeze:t, said Fn zcc 9 or' tka. .;s . - , , .-... , L-= L=, =,-yC..==a k- ZAS=.ZZ;==ZSS, cxer tAtn .;:=% . ; .- are =c:.ered 5 is=l+ virl tj, he ~czE~c~:,:; ,-rcvisicr;s cf this Article 2, I:czrred by C0NT;iACTcz cy oFercti2g Cc=Far,y xder ~;;rc=~ei Xork 2rogrcns 22:' 3ud:ets end efter cczssltrzisn vish the MINISTXY. 51 : .I 4 2.12 (b) The CCNT33.CC3, befcre the fcxaticn of the Operatin= Co=~my, end the Operati-? Cczpzny shall hzve the righ~ to inczr 2nd pzy ccsts azi ex2enses ~ertaining to eEerTency tffecting szfeYJ* to cerscn or property in =kgA Petrcleux cssretions a:= s~h c=stS ~nd expenses =hail te =ecc-;er~Sle cr,t=r tkis .:srer,:s=t ~rcviced -L-- L..C L La.\. ~13i~iyi =!-=~l ke :G-:=:C- cr azy s~ch ezer5ency es scck.2 es ;rec=ic~3le. The CG?:'I"I'=COR, 5sZzre the fcrxetf en ci -- GAe cr;erzti:3 Ccz;e,qr, e;..5 tka ,------;- ,=s- c ~-.r'j CCS;~=Z,~~ '-=-.e ..- 1 tt= ri~:': to inc-2,- ez5 C==~S ex?ez=es s,ZelTi s-.: -:a;$ eny itex cf 23 ~~;rc.-ed xcrk Frc~rzx exd 3udgac fcr ,n ano*~:t in excess or' tka b-.kget fez sxch iten cnd seek czsts and expezsss shell 21- ccst rrcsvera3ls cnCer t:liz? &a Agr=eze:t to -..e extr,,': thzt tkq do nct exceed tefd zercent (112%) of A*-e L.. :h*G--- ---= SL ZCr ' SXC~ it€=. - CCKTISUISG CCST72CZ'C3 C2S7f w a .. . ec- : ..; & : .. . Ccsts ef cc.!i'~~-:.c~~.~ 1 s --.---es z~~dized zz&r tki= .kgrec-sa== azd izccrzsd excel In 'cke ZGY zf=~r Operzting Ccsr.;e.-.y is fex.ei ;rc-~i5e.i tktt ccscs cfsd CCNTS.CPCXts sx~ztriz=2 €=;l=y€ss ax= ZGY ez;lsyees ez:2fe5 in ='Jc~ ~cti-.~it~r,s in =< =k=l1 F=cL*.-PJa tkc,ce c=s=s specified ix s,$-----r---- c-cz-zz:.~ 2.1 !z), 2.1 (b) 2.1 (c) I 2.2. 9 < and 2.4. , ~=C-~-S. & s h .-,& reesczekla IzteSzls ts r.;zsad :=c.-. >y t:la I-X!?iS?Y?! azi "; CO~~TZ.LC~CX, ~s..-Ez=c~~Es ~k2i 1 == t~k~z =y CC!:iF-kCTCX cf t== ' i . - :a Zetzelscx c;srt=Fczs =etgr:r~, :hick szzll izclxte tll scch -- ..LC- . zaterlzl, ;kysictl ESSQ~S e-9 ez:str:ctf cn ;=of ects. :. nctice cf c :a ;=:.re i:ver.::ry shz11 ke qiren t?? CcNr5ZZCTCX =ta xI!;ISzF.:.':: r= Ls~st =:=~z*J (30) 2~:s =~f=re &,j eny ixeztcry is to 5e~in sa tkrt e !!IS zey =e . . F2iL-x~ cf t;:e 77 regresented Knsn azy xve,-.5cqT is --'-- XINISTZi to te re;resezted ss zn Izve===r;r sk~ll Sir.d it to i ; zccest tke izq:zr,tcry tr:-:en ty iZC!:i~\CT33, vko shall, i3 L..G L " eve%, is k !I! it 3 cczy tkereoi. Szch invezttrirs sktll trke ;l~ca e:,:ally cz es ctk~m~isa -. 3ecc~cillztlz~ =r l:ve:=cr~ skall Te zzde ty CONTIACTC3 cz2 7 the MI!;~sE'~, ezi a lisz cF cvercges cxd sncrtzges shall >e hr .. j jointly deter==i.'.ea ad tke iz-.*enccrj acccrdizgly adjcsted by the CONTRACTCX. q' 3.3 After the first Coziz,ercial 3iscoverj of Oil the Operating 3 Company shall czrr- out the fcregoing inventory obligcticns CCST FZCCTZXY 3 CONIG.CTOi3 shzll, ;srs:zzt to Xrkicl2 7 of the Agre~nent, . .j render to the XINISiZ'l act later thzn thirty (30) dzys efter ezch gazrtar a stztezenc fcr thzt Gzzrzer shcwixg: 1 P (a) i3eccvera3la . ccsts carriz5 fs,-rd frcx r;reviocs CJ Qcerter(s), Ii azy. '7 . . --. (b) Zeccq.*erc41;. c.=ers ~.-,c.---- ,,-=a =arl.:; =kc= Gztrter. (c) Tctzl recc*:er~i=le czsts (2) + (3). i. 3 (6) '.:elce cf Ccs= cil ta:.;~~ ezf sqtr2tsl-j - &i==c,eg? - cf "- L,~ . . -2 cc!iT?Ac~c2 zcz - b..C - - - L ~:crcEr. :c- . . i' (e) izoc:t of ccsts rec=-;zrci f=r tzz= Gzzrter. ,' { .# (f) 2cuat cf race*.-~rzbla c=s% ccrriei izta tke sccceadizg , .$ . - Qderter, 11 ezy. i p '. (g) 2cyzity ~cyz5le ta 3GY. 7 : 1 4.2 Costs, er-e-=ES .-= ..- 225 EX;EZ~~~ZZ=S thac tre izczrr~d azd ;aiZ . , pier to the Yazr in xhich -&-- L..c~ zre z~ccvercSle cxder this L 3 .;gree=ezt shell ke ellcc~tsd t3 the fize= Cuzrter cr' soc:? 1 Year. All ct%r ccets, expezees cct ex;ezditxr~s tkzt ere ;I reccverzble in r~ch yeer ~2211 3e c1:ccat~d to tke czerzer i'-. ., in which they Ere izcxrrc-d cz5 paici. tL \ For the r~~~css =f cz1c:leti:g k~ck -:tlxe, t3e ccsts cf scch '. -. ;? 3.3 fixed and zc-.*zkle assats s;-.=ll ke rfc=*.-er~-d, ix tke crCc,r in &;) vhich tkey zre izc:rred rsr C~~rter. Ske ccsts izcurr~d in '1 the szae Czerter etcll ke recc-.-ered ;rcycr-,ic;?zlly. .. 3 : i 4.4 Fudit 3ichts -Ld . ., The MI! c,;lF;atisn hes keen zet, costs, expenses and ex2enditzres ekcll 2e reccrded in zsfcr acccczts izcl-25:-g tke Zcllcui3;:- Xecessary sct-zcccc.-.ts shall 3e ~sed in czcr5i:eticn xit5 r::c YINIST3Y. 3evence eccc:nts shall 5e sciztcbned ty CCNT-32rCTOX to the extent necessary icr the ccztrol cf recc-;cry ct ccsts a:ld tke treat:znt of Ccst Oil. Cssh with EmPLE CXLCUTJTfON OF ROYALTY, CCST OIL. PHD PRODUCTION SEAXIHG OIL ..ss;;zing =.';at the Xcnthly liverase Caily !;et r"rc5~cticn ("%\DN?") is EO,@CO - - ,-,-L. then calculatioa of t2e shzres of C-O'vZYhE!?T and CCN'PGCTOX would te as ., fcllcxs :- 1. DeC ,,,Lc~ --. cf X~yal* c%'iiad ty tke C-G\LJHE!iT frcx the totel an our,^ cr' -, t 80,CCC) Sj3L acccrdirlg to Article 3.2 cf this Agreexierit. *ca Xcyalf-I = r,4CX? X t2e serc~ntzge cl 3cyalty tivieed 3qr cne hcnered. . i - :. F SO, COO E35 - Zcyslt--- cf 3,003 52:. - 72,3CO E3L. i-A s zr-- -L --.e rezzizizg EXCEZ= :JZP*-? c=l c-l---- r' 2. Oil ss 2011~~-s :- -.--I -,cL=l akcvs xe deecct t'.a Czs= i. 3 A. 73 Assuni~g the elily reccverttle ccsts exceed t2s valxe sf thej zaxiaca Ccst Oil cclcal~ted tt tke ?ertentt~e stztsd in Articlt ? 7.1.1 cT tkis .;~reener.t ("zcxiz~x ;erttztaseu) . - q Ccst Oil = 1- = la, :co rs~ .< LC0 i:j : ? 3. Xssuxi:~ the toily reccverz5ls ccsts rre $ 3G0,003 tnd sre less : . i tkan the val'ie cf the zaxiz.;~ Ccst Oil .calc'~lat~cl at tke zitxiz::.~Lr _sercentzze; 2nd css-~~ing tke Ccs= Cil *.-alee is $ 23/33L. -. Ccst Cil = ~ q -L L,e velxe (per =zrzel) cf tks Ccst Oil czCer Article 7.3 cf t2s Xqrce=cn=. .q CCS~ Oil = S 200.0.30 - $ ZO/SSL Ccet Oil = 15,000 335,'. - recoverable coscs" seans tne reLuvc auLe allocated to the applicable Quarcer di-ided by c.19 rj nunber of days in such Quarter. 3. The remaining MADNP ("Production Sharing Oilvv) , i . e . .!ADNP after deduction of (1) Royalty and (2) Cost Oil (2A or 2! above, as '7 applicable), according to Article 7.2 of this Agreement. a GOVERNMENT share = The Production Sharing Oil multiplied by the GOVERNMENTt s percentage of Production Sharing Oil calculated as the weighted averaje of the percentages provided in Article 7.2 of this Agreement as follows: 77% of first 25,000 BBL = 19,250 BBL. "r 79% of next 25,000 BBL = 19,750 BBL. . .# 81% of next 25,000 EBL = 20,250 BBL. - 83% cf next 5,000 Eat = 4,150 SBL. (19.250+ 19.750+ 20.250+ 4.150 BBL = GOVE3vXENTfs erceniige (GP) 80,000 SaL - 63.400 BBL - G? 80,000 BBL GOVER!NTvs Share = GP X Trodcction Shzrizg Oil Prc&~ction Sharing Oil = MADNP minus (Royalty plus Cost 0. ; [either 2X or 231) Production Sharing Oil = 80,000 BBL - (8,000 BBL, i 16,000 5BL Gz I2Al) Production Sharing Oil = 80,000 EEL - (8,000 BBL + 15,000 3BL Y - [ZSj) d &J Prcduction Sharing Oil = 54,000 BBL i2A) cr 57.,000 3BL [Z..] . .. 9 GOVEXHMENTfs Share = 79.25% of 54,000 B5L [2A] of u 57,000 BBL [ZB] 2 GO~~NTts Share = 42,795 BBL (2X) or 45,172.5 BBL (2B Q CONTRACTORts SEare = Production Sharing Oil less Governm..nt's y S . share of Production.Sharing Oil . ,. I > , CCNT,UCTOR8s Share = 54,000 9BL - 42,795 BEL [2A] or 57,000 BBL - 45,172.5 BBL [ZB] CONTRACTOR'S Share = 11,205 BBL [2hl 11,827.5 BBL [ZB] Xaze of tke CONEXACTOX: Address: 3. Z. YI!:If T33 OF OIL & XISE?AL ZhSOGZCiS " y .. .--> C aczcr&l2 XIXISTEX: 9 k'e, the CONT~.CTC2, hereby declcre =,';at a Coz=ercial Disccvery of Oil Scs teen zocified to the MSNISTX? cn . Tke Declaration follcvs ~4~ m. a result of the aazraizal srogre=r CCZSLS'~::~ of tke drlllizcj o' -. 7~210rzticn sells to dzte, E i~cludizg 5eological,, gec;k-ysic.zl and engineerizg stckiss tk~t i~dictte the size of tke scr:ct=z& ..aq: *,.,cr; t:70 Cc::,ercial Disccver;? or' Oil VES --in ... C-. - . The s:;~u;ar;r cf =::s - --- =,-,aiz~I - - ;rograx is as fallzvs :- h Well + 1 (etc) Ihic:-:zess cf ?Z-J Grcss L L A L Set f t Grcss A = L L LL Net LC Zazse of estizrted zese,rr'ss fcr Develc;xe~k Area : (Sc:.3cry cZ any otker relevrnt infcr,rtioz) G' 5ased cx the str~ctural ir,ter;reteticn resultizg fro3 tke ~eolcciczl, sec$iysical a;..< engizeerizg s?c5ies, the str~ct'zre in ;;hich the Cc~o'lercial, (nt:::>er of blccks) ~evelcsaeii':! Disccvery cf Oil has been zade is locztad in - slocks c:=;rising a tctzl 3evelc;zent Area of Li2. nq -L rbbe corzar coorZlzttes of the Developzent Area are as fcllovs : 1. 4. ., 2. 5. 3. Therefcze, in zcccr2ence with the lroduction Sharing Agreezent - \ we rr..r--- --- - into a Zeveloproent Area xi=:? resgect to the Ccraerc~zl olscevery LL LA, zctified co the MINISTSY 2s afcresaid. 7 , r Tfiis 3eqcest for Ccnversion to Development Area shall be subject to the following conditions : Ff F: #' 1. The provisions of the Production Sharing Agreement under which this Couercial Discovery of Oil was notified to the MINISTXY shall apply tc- the ?etroleum Operations in respect of the Develcpnent Area here=y $ established. --5 2. This Develcpnent Area zzy Se revised, durfzg or zfter the Explcrtticn~ Ferisd, by the CONTRXCTC3 after the ap~rcval of the MINISTRY if suppcrred by additicnzl teck~isal inforizzcion resulting frox fut-re"' ?etroleum Opertticns by an anendsent to this Repesc fcr Conversion t=~, Development Area prcvidea that any propcsed extension area shall ncr 3 extend beyond the criginal Agreerient Area or izco any area under a>i prce~ction sharing agreezent with third parries. -, 3. If future Exploration in =fie Develcpzlent Xrea, Curing or after thy Zqlcrzcion leriod, resillts in a disccver- of Oil in a separase qeolcgical structnre that extex2s beyczd the Developnezz Area. CONFACTOR shall have the right, after the qprcval of the MINISTRY, appraise such disccve-ry by Crilling one or iaore Zxploration outside the Develo~aent Area, prcvided that such catsiCe area is wichi.. the criginal Agreezenr Xrea and is nct znrier a prodaction shaririq aqrcezent vith third sartics. The CGNTXACTCX shall have tae right tc , decltre such disccvery a Ccr;~ercial 3isccve-ry of Oil. In such czsa rke-' XINISTXY and COST-WCTOR shall si~n an anenczens of this Reqzesr for Ccavcrsicn to Develcpzent Area co extend the 9evelc~r;enc Area to includi? the 5eological structure ia which sac3 Cc,eccial Discovery xas naee. "j 4. If, xithout technical cr econoaic reasons cr Force Xajeure, producticrs !?as zcc coz,-,enced on a ccntinuous basis witkin three (3) years frcx th5,' Csce of acceptance by tke MINISTXI of CONT-XCTCR~S Reqcesz fc2* Cczversion to Develcpzenr Area, tbe MINISn'l aay request CONTXACTCR to ccre such prcblem, giving a three (3) years extension to do so. 1:': after such extension period, ~roducticn has aot cc~~~enced cn g-j ccnti:rrous Sasis, tke CG!:??ACTCX will be cblised to surrender eke- Develccnenr Xrea to the ZINISTZY cn requesc. h 1 Cc;:sequently, we respectfilly req~est the ?lIISISTXif s acceptznce of, ;: 4 aqreement to, this request fcr Cczversicn to Develo~nent Area to evizenced by your signature below. 0 Name : -7 Title : A A SFqned tkis day cf 199 3.Z. XINIS?E,S OF OIL & MINE?AL ZZSOUXCZS.