Common use of CESSATION OF PETROLEUM ACTIVITIES Clause in Contracts

CESSATION OF PETROLEUM ACTIVITIES. The Operator shall submit a proposal to the management committee to prepare an abandonment plan in accordance with the time limits stipulated in the Petroleum Act. If the Operator or a Party is of the opinion that activities should be terminated or the use of a facility should cease before the Production Licence expires, it may within the same time limits propose to the management committee that an abandonment plan for the activities or the facility be prepared. If the management committee so decides, the Operator shall in close cooperation with the other Parties prepare such abandonment plan. The management committee may also decide to apply to the Ministry for an extension of the time limit for submitting an abandonment plan, or for an exemption from the requirement to present an abandonment plan. If the management committee does not adopt a proposal to prepare an abandonment plan, or does not deal with the matter within a reasonable period of time, any Party may himself prepare an abandonment plan. Upon request from such Party, the Operator shall assist the Party in its work to the extent this does not involve cost or inconvenience to the joint venture. The abandonment plan shall specify any provide information in accordance with what is required by applicable law, regulations and guidelines. ABANDONMENT PLAN An abandonment plan as mentioned in Article 29 shall be submitted to the management committee and the Parties. Any Party may prepare an alternative abandonment plan or make suggestions for alterations and shall, in such case, attach an account of the Party's diverging conclusions. Upon request, the Operator shall assist the Party in its work to the extent this does not involve costs or inconvenience to the joint venture. The management committee may adopt an abandonment plan no earlier than three (3) months after it received the plan. If a Party within this period has notified that it will prepare proposals for substantial alterations in the abandonment plan or an alternative abandonment plan, the management committee shall set a period of at least three months for the submittal of such proposal. If the management committee adopts an abandonment plan prepared pursuant to Articles 29.2, 30.2 or 30.3, or makes substantial use of such abandonment plan, the Party who has prepared the plan may require that the cost relating to its preparation be reimbursed. An approved abandonment plan with appurtenant documentation shall be submitted to the Parties, the Ministry, the Norwegian Ocean Industry Authority and the Norwegian Offshore Directorate. In case one or more Parties intend(s) to oppose a decision by the management committee to submit an abandonment plan and instead continue the production, this or those Party(ies) may submit a proposal to this effect to the management committee, including a draft agreement for continued production. If no agreement is obtained about such agreement for continued production, the agreed abandonment plan shall be submitted in accordance with Article 30.5 together with the proposal for continued production. IMPLEMENTATION OF AN ABANDONMENT PLAN As soon as the Ministry has made its decision on disposal the Operator shall submit a proposal to the management committee concerning the execution of the decision. The management committee shall discuss the Operator's proposal within three months; otherwise the Operator's proposal shall be deemed to be adopted. The management committee may change, adopt or reject the Operator's proposal for execution of the Ministry's decision on disposal. The provisions of Article 12 shall, as appropriate, apply accordingly to the budget for the cost of execution of decisions on disposal. The provisions of Article 12 shall, as appropriate, apply accordingly to the budget for the cost of execution of decisions on disposal. ATTACHMENT B TO AGREEMENT CONCERNING PETROLEUM ACTIVITIES PURSUANT TO PRODUCTION LICENCE NO xxx ATTACHMENT B – ACCOUNTING AGREEMENT C O N T E N T

CESSATION OF PETROLEUM ACTIVITIES. The Operator shall submit a proposal to the management committee Management Committee to prepare an abandonment plan in accordance with the time limits stipulated in the Petroleum Act. If the Operator or a Party is of the opinion that activities should be terminated or the use of a facility should cease before the Production Licence expires, it may within the same time limits propose to the management committee Management Committee that an abandonment plan for the activities or the facility be prepared. If the management committee Management Committee so decides, the Operator shall in close cooperation with the other Parties prepare such abandonment plan. The management committee Management Committee may also decide to apply to the Ministry for an extension of the time limit for submitting an abandonment plan, or for an exemption from the requirement to present an abandonment plan. If the management committee Management Committee does not adopt a proposal to prepare an abandonment plan, or does not deal with the matter within a reasonable period of time, any Party may himself prepare an abandonment plan. Upon request from such Party, the Operator shall assist the Party in its work to the extent this does not involve cost or inconvenience to the joint ventureUnit. The abandonment plan shall specify any provide proposals for continued production or shutdown of the production and disposal of facilities, for example further use of the facility in the petroleum activities, other use, complete or part removal or abandonment. Technical matters, matters concerning safety and matters relating to protection of the environment and economical issues as well as a due consideration of other users of the ocean shall be discussed in the abandonment plan for the relevant disposal alternative(s). Further, any information in accordance with what is required by applicable lawlaws, regulations and guidelinesor guidelines shall be included. ABANDONMENT PLAN An abandonment plan as mentioned in Article 29 37 shall be submitted to the management committee Management Committee and the Parties. Any Party may prepare an alternative abandonment plan or make suggestions for alterations and shall, in such case, attach an account of the Party's diverging conclusions. Upon request, the Operator shall assist the Party in its work to the extent this does not involve costs or inconvenience to the joint ventureUnit. The management committee Management Committee may adopt an abandonment plan no earlier than three (3) months after it received the plan. If a Party within this period has notified that it will prepare proposals for substantial alterations in the abandonment plan or an alternative abandonment plan, the management committee Management Committee shall set a period of at least three months for the submittal of such proposal. If the management committee Management Committee adopts an abandonment plan prepared pursuant to Articles 29.236.2, 30.2 37.2 or 30.337.3, or makes substantial use of such abandonment plan, the Party who has prepared the plan may require that the cost relating to its preparation be reimbursed. An approved abandonment plan with appurtenant documentation shall be submitted to the Parties, the Ministry, the Norwegian Ocean Industry Authority Ministry of Labour and Social Affairs and the Norwegian Offshore Petroleum Directorate. In case one or more Parties intend(s) to oppose a decision by the management committee Management Committee to submit an abandonment plan and instead continue the production, this or those Party(ies) may submit a proposal to this effect to the management committeeManagement Committee, including a draft agreement for continued production. If no agreement is obtained about such agreement for continued production, the agreed abandonment plan shall be submitted in accordance with Article 30.5 37.5 together with the proposal for continued production. IMPLEMENTATION OF AN ABANDONMENT PLAN As soon as the Ministry has made its decision on disposal the Operator shall submit a proposal to the management committee concerning the execution of the decision. The management committee shall discuss the Operator's proposal within three months; otherwise the Operator's proposal shall be deemed to be adopted. The management committee may change, adopt or reject the Operator's proposal for execution of the Ministry's decision on disposal. The provisions of Article 12 shall, as appropriate, apply accordingly to the budget for the cost of execution of decisions on disposal. The provisions of Article 12 shall, as appropriate, apply accordingly to the budget for the cost of execution of decisions on disposal. ATTACHMENT B TO AGREEMENT CONCERNING PETROLEUM ACTIVITIES PURSUANT TO PRODUCTION LICENCE NO xxx ATTACHMENT B – ACCOUNTING AGREEMENT C O N T E N T.

CESSATION OF PETROLEUM ACTIVITIES. The Operator shall submit a proposal to the management committee to prepare an abandonment plan in accordance with the time limits stipulated in the Petroleum Act. If the Operator or a Party is of the opinion that activities should be terminated or the use of a facility should cease before the Production Licence expires, it may within the same time limits propose to the management committee that an abandonment plan for the activities or the facility be prepared. If the management committee so decides, the Operator shall in close cooperation with the other Parties prepare such abandonment plan. The management committee may also decide to apply to the Ministry for an extension of the time limit for submitting an abandonment plan, or for an exemption from the requirement to present an abandonment plan. If the management committee does not adopt a proposal to prepare an abandonment plan, or does not deal with the matter within a reasonable period of time, any Party may himself prepare an abandonment plan. Upon request from such Party, the Operator shall assist the Party in its work to the extent this does not involve cost or inconvenience to the joint venture. The abandonment plan shall specify any provide proposals for continued production or shutdown of the production and disposal of facilities, for example further use of the facility in the petroleum activities, other use, complete or part removal or abandonment. Technical matters, matters concerning safety and matters relating to protection of the environment and economical issues as well as a due consideration of other users of the ocean shall be discussed in the abandonment plan for the relevant disposal alternative(s). Further, any information in accordance with what is required by applicable lawlaws, regulations and guidelinesor guidelines shall be included. ABANDONMENT PLAN An abandonment plan as mentioned in Article 29 30 shall be submitted to the management committee and the Parties. Any Party may prepare an alternative abandonment plan or make suggestions for alterations and shall, in such case, attach an account of the Party's diverging conclusions. Upon request, the Operator shall assist the Party in its work to the extent this does not involve costs or inconvenience to the joint venture. The management committee may adopt an abandonment plan no earlier than three (3) months after it received the plan. If a Party within this period has notified that it will prepare proposals for substantial alterations in the abandonment plan or an alternative abandonment plan, the management committee shall set a period of at least three months for the submittal of such proposal. If the management committee adopts an abandonment plan prepared pursuant to Articles 29.230.2, 30.2 31.2 or 30.331.3, or makes substantial use of such abandonment plan, the Party who has prepared the plan may require that the cost relating to its preparation be reimbursed. An approved abandonment plan with appurtenant documentation shall be submitted to the Parties, the Ministry, the Norwegian Ocean Industry Authority Ministry of Labour and Social Affairs and the Norwegian Offshore Petroleum Directorate. In case one or more Parties intend(s) to oppose a decision by the management committee to submit an abandonment plan and instead continue the production, this or those Party(ies) may submit a proposal to this effect to the management committee, including a draft agreement for continued production. If no agreement is obtained about such agreement for continued production, the agreed abandonment plan shall be submitted in accordance with Article 30.5 31.5 together with the proposal for continued production. IMPLEMENTATION OF AN ABANDONMENT PLAN As soon as the Ministry has made its decision on disposal the Operator shall submit a proposal to the management committee concerning the execution of the decision. The management committee shall discuss the Operator's proposal within three months; otherwise the Operator's proposal shall be deemed to be adopted. The management committee may change, adopt or reject the Operator's proposal for execution of the Ministry's decision on disposal. The provisions of Article 12 shall, as appropriate, apply accordingly to the budget for the cost of execution of decisions on disposal. The provisions of Article 12 shall, as appropriate, apply accordingly to the budget for the cost of execution of decisions on disposal. ATTACHMENT B TO AGREEMENT CONCERNING PETROLEUM ACTIVITIES PURSUANT TO PRODUCTION LICENCE NO xxx ATTACHMENT B – ACCOUNTING AGREEMENT C O N T E N TT ARTICLE 1. GENERAL PROVISIONS …………………………………………………….55 1.1 Definitions …………………………………………………………………….…….55 1.2 Cash requirements – Advances ……………………………………………………..56

CESSATION OF PETROLEUM ACTIVITIES. The Operator shall submit a proposal to the management committee to prepare an abandonment plan in accordance with the time limits stipulated in the Petroleum Act. If the Operator or a Party is of the opinion that activities should be terminated or the use of a facility should cease before the Production Licence expires, it may within the same time limits propose to the management committee that an abandonment plan for the activities or the facility be prepared. If the management committee so decides, the Operator shall in close cooperation with the other Parties prepare such abandonment plan. The management committee may also decide to apply to the Ministry for an extension of the time limit for submitting an abandonment plan, or for an exemption from the requirement to present an abandonment plan. If the management committee does not adopt a proposal to prepare an abandonment plan, or does not deal with the matter within a reasonable period of time, any Party may himself prepare an abandonment plan. Upon request from such Party, the Operator shall assist the Party in its work to the extent this does not involve cost or inconvenience to the joint venture. The abandonment plan shall specify any provide proposals for continued production or shutdown of the production and disposal of facilities, for example further use of the facility in the petroleum activities, other use, complete or part removal or abandonment. Technical matters, matters concerning safety and matters relating to protection of the environment and economical issues as well as a due consideration of other users of the ocean shall be discussed in the abandonment plan for the relevant disposal alternative(s). Further, any information in accordance with what is required by applicable lawlaws, regulations and guidelinesor guidelines shall be included. ABANDONMENT PLAN An abandonment plan as mentioned in Article 29 30 shall be submitted to the management committee and the Parties. Any Party may prepare an alternative abandonment plan or make suggestions for alterations and shall, in such case, attach an account of the Party's diverging conclusions. Upon request, the Operator shall assist the Party in its work to the extent this does not involve costs or inconvenience to the joint venture. The management committee may adopt an abandonment plan no earlier than three (3) months after it received the plan. If a Party within this period has notified that it will prepare proposals for substantial alterations in the abandonment plan or an alternative abandonment plan, the management committee shall set a period of at least three months for the submittal of such proposal. If the management committee adopts an abandonment plan prepared pursuant to Articles 29.230.2, 30.2 31.2 or 30.331.3, or makes substantial use of such abandonment plan, the Party who has prepared the plan may require that the cost relating to its preparation be reimbursed. An approved abandonment plan with appurtenant documentation shall be submitted to the Parties, the Ministry, the Norwegian Ocean Industry Authority Ministry of Labour and Social Affairs and the Norwegian Offshore Petroleum Directorate. In case one or more Parties intend(s) to oppose a decision by the management committee to submit an abandonment plan and instead continue the production, this or those Party(ies) may submit a proposal to this effect to the management committee, including a draft agreement for continued production. If no agreement is obtained about such agreement for continued production, the agreed abandonment plan shall be submitted in accordance with Article 30.5 31.5 together with the proposal for continued production. IMPLEMENTATION OF AN ABANDONMENT PLAN As soon as the Ministry has made its decision on disposal the Operator shall submit a proposal to the management committee concerning the execution of the decision. The management committee shall discuss the Operator's proposal within three months; otherwise the Operator's proposal shall be deemed to be adopted. The management committee may change, adopt or reject the Operator's proposal for execution of the Ministry's decision on disposal. The provisions of Article 12 shall, as appropriate, apply accordingly to the budget for the cost of execution of decisions on disposal. The provisions of Article 12 shall, as appropriate, apply accordingly to the budget for the cost of execution of decisions on disposal. ATTACHMENT B TO AGREEMENT CONCERNING PETROLEUM ACTIVITIES PURSUANT TO PRODUCTION LICENCE NO xxx ATTACHMENT B – ACCOUNTING AGREEMENT C O N T E N TT ARTICLE 1. GENERAL PROVISIONS …………………………………………………….54