Common use of BUDGET APPROVAL AND AFE APPROVAL Clause in Contracts

BUDGET APPROVAL AND AFE APPROVAL. Approval of Budgets for Exploration, Appraisal, Development and Production provides Operator with general approval of the proposals but does not, subject to Article 5.8 and 9.6 of the Agreement, permit Operator to enter into commitments or incur any expenditures for any item included in the said Budgets for which an AFE is required in accordance with the provisions of the Agreement until such AFE is approved by the Operating Committee or deemed to be approved as hereinafter provided.

BUDGET APPROVAL AND AFE APPROVAL. Approval of Budgets for Explorationexploration, Appraisalappraisal, Development development and Production production provides Operator with general approval of the proposals but does not, subject to Article 5.8 and 9.6 of the Agreement, permit Operator to enter into commitments or incur any expenditures for any item included in the said Budgets for which an AFE is required in accordance with the provisions of the Agreement until such AFE is approved by the Operating Committee or deemed to be approved as hereinafter provided.