Commercial Discovery. (i) A Commercial Discovery - whether of Oil or Gas - may consist of one producing reservoir or a group of producing reservoirs which is worthy of being developed commercially. After discovery of a Commercial Oil or Gas Well CONTRACTOR shall, unless otherwise agreed upon with EGPC, undertake as part of its Exploration program the appraisal of the discovery by drilling one or more appraisal xxxxx, to determine whether such discovery is worthy of being developed commercially, taking into consideration the recoverable reserves, production, pipeline and terminal facilities required, estimated Petroleum prices, and all other relevant technical and economic factors.
(ii) The provisions laid down herein postulate the unity and indivisibility of the concepts of Commercial Discovery and Development Lease. They shall apply uniformly to Oil and Gas unless otherwise specified.
(iii) CONTRACTOR shall give notice of a Commercial Discovery to EGPC immediately after the discovery is considered by CONTRACTOR to be worthy of commercial development but in any event with respect to a Commercial Oil Well not later than thirty (30) days following the completion of the second appraisal well or twelve (12) months following the date of the discovery of the Commercial Oil Well, whichever is earlier or with respect to a Commercial Gas Well not later than twenty four (24) months following the date of the discovery of the Commercial Gas Well (unless EGPC agrees that such period may be extended) except that CONTRACTOR shall also have the right to give such notice of Commercial Discovery with respect to any reservoir or reservoirs even if the well or xxxxx thereon are not "Commercial" within the definition of "Commercial Well" if, in its opinion, a reservoir or a group of reservoirs, considered collectively, could be worthy of commercial development. It is understood that, any Crude Oil produced from an under-testing well in the Area before it is converted to a Development Lease, either considered Commercial or non-commercial Well, and not used in petroleum operations, is 100% owned by EGPC and not subject to Article VII. CONTRACTOR may also give a notice of a Commercial Oil Discovery in the event it wishes to undertake a Gas Recycling Project. A notice of Commercial Gas Discovery shall contain all detailed particulars of the discovery and especially the area of Gas reserves, the estimated production potential and profile and field life. Within sixty (60) days following receipt of a noti...
Commercial Discovery. No later than sixty (60) Days after the end of the Appraisal Period, the Contractor shall inform CNH whether it considers the Discovery to be a Commercial Discovery, in which case the Contractor shall submit a Development Plan for such Commercial Discovery in accordance with Article 6.2, without prejudice to the Contractor’s obligation to continue the Surface Reconnaissance and Exploration, Exploration and Appraisal activities pursuant to the Exploration Plan in the rest of the Contract Area until the end of the Exploration Period or completion of the Minimum Work Program and the Minimum Program Increase. The declaration of a Commercial Discovery shall include a delimitation of the Development Area, which shall require the approval of CNH.
Commercial Discovery. No later than ninety (90) Days after the end of any Appraisal Period, the Contractor shall inform the CNH whether it considers the Discovery to be a Commercial Discovery, in such case, the Contractor shall submit a Development Plan for such Commercial Discovery in accordance with Article 6.2, without prejudice to the Contractor’s obligation to continue the Surface Reconnaissance and Exploration, Exploration and Appraisal activities pursuant to the Exploration Plan in the rest of the Contract Area until the end of the Exploration Period or completion of the Minimum Work Program, the Increase in the Minimum Program or the work commitments acquired for the First Additional Exploration Period or the Second Additional Exploration Period. The declaration of a Commercial Discovery shall include a delimitation of the Development Area, which shall require the approval of the CNH. The term for the submission of the Development Plan shall initiate upon the declaration of any Commercial Discovery.
Commercial Discovery. (a) The Contractor may, at any time and having regard to paragraph 4.10(b), declare that a Commercial Discovery has been made.
(b) The declaration is to be made in such manner, and be accompanied by such supporting data and information, as the Designated Authority requires, including the Contractor's proposal as to that part of the Contract Area to be declared a Development Area.
(c) The Designated Authority shall declare those Sub-Blocks which encompass the Field in which the Commercial Discovery has been made plus a reserve margin sufficient to cover the probable extent of the Field, to be a Development Area, but may exclude deeper formations in which no Discovery has been made. The Designated Authority, at any time and from time to time, of its own volition or that of the Contractor, may:
(i) add Sub-Blocks then in the Contract Area to;
(ii) remove Sub-Blocks from; or
(iii) vary by depth within the Contract Area, a Development Area as may be required to ensure that it encompasses the Field concerned, but not, unless the Designated Authority and the Contractor otherwise agree, after the first Development Plan in respect of the Development Area has been approved. The Contractor shall relinquish any part of the Contract Area removed from a Development Area as a consequence of such removal or other variation, if it occurs after the time for the relinquishment provided for in paragraph 3.2(a).
Commercial Discovery. (a) The Contractor may, at any time and having regard to paragraph 4.10(b), declare that a Commercial Discovery has been made.
(b) The declaration is to be made in such manner, and be accompanied by such supporting data and information, as the Designated Authority requires, including the Contractor's proposal as to that part of the Contract Area to be declared a Development Area.
(c) The Designated Authority shall declare those Sub-Blocks which encompass the Field in which the Commercial Discovery has been made plus a reserve margin sufficient to cover the probable extent of the Field, to be a Development Area, but may exclude deeper formations in which no Discovery has been made. The Designated Authority, at any time and from time to time, of its own volition or that of the Contractor, may:
(i) add Sub-Blocks then in the Contract Area to;
(ii) remove Sub-Blocks from; or
(iii) vary by depth within the Contract Area,
Commercial Discovery. 1. Contractor shall inform Sonangol within thirty (30) days of the end of the drilling and testing of an Exploration Well, the results of the final tests of the Well and whether such a Well is commercial or not. The date of this advice is the date of the declaration of the Commercial Well, should such well exist.
2. After the declaration of a Commercial Well, Contractor may undertake the Appraisal of the discovery by drilling one or more Appraisal Xxxxx to determine whether such discovery can be classified as a Commercial Discovery.
3. Unless otherwise agreed by Sonangol, not later than six (6) Months after the completion of the second Appraisal Well, or twenty-four (24) Months after the declaration of the Commercial Well, whichever is earlier, Contractor shall give written notice to Sonangol indicating whether the discovery is considered commercial or not. If Contractor declares it a Commercial Discovery, Contractor shall proceed to develop it under the Petroleum Activities Law. The date of Commercial Discovery shall be the date on which Contractor informs Sonangol in writing of the existence of said Discovery.
4. If the period allowable for declaration of a Commercial Discovery extends beyond the Exploration Period, a provisional Development Area shall be established for such period as necessary to complete the Appraisal as per paragraphs 0 and 0 above. The provisional Development Area shall be of the shape and size which encompasses the geological feature or features which would constitute the potential Commercial Discovery. Such provisional Development Area shall be agreed by Sonangol in writing.
5. Any Commercial Well shall count towards fulfilling the work and expenditure obligations provided for in Article 14, but the Appraisal Well(s) that have been drilled following the discovery of a Commercial Well shall not count towards such obligations.
6. There shall be no more than one (1) Commercial Well in each Development Area that counts towards such work obligations; and it shall be the first Commercial Well in that Development Area.
7. Contractor has the right to declare a Commercial Discovery without first having drilled a Commercial Well or Xxxxx.
Commercial Discovery. 15.1. No later than one hundred and eighty (180) Days prior to the end of the Appraisal Period or the end of the Retention Period, the Contractor shall submit a written declaration to the Minister indicating, that it has determined the Discovery is either:
(a) a Commercial Discovery; or
(b) not a Commercial Discovery in which event Contractor shall be required to relinquish the areas pursuant to Article 9.
15.2. The Minister shall within thirty (30) Days of receipt of the Appraisal Report to notify the contractor whether or not it approves the proposed delineation of the geological structure corresponding to the Commercial Discovery. In the event the Minister does not approve the proposed delineation within the said thirty (30) Days, the Parties will meet within the following thirty (30) Days to seek a mutually acceptable delineation. If the Parties have not reached a mutually acceptable delineation within such thirty (30) Day period, the Contractor may refer the matter for expert determination pursuant to Article 47. During the expert determination period, the Contract Area may not be withdrawn by any Party or relinquished without the written consent of the Parties and the Prospecting License shall be extended pursuant to the Act.
15.3. A declaration of a Commercial Discovery shall be without prejudice to the Contractor’s continuing obligations under a Petroleum Prospecting Licence, exploration and appraisal activities in the rest of the Contract Area until the end of the Exploration Period or completion of the Minimum Work Program.
Commercial Discovery. The discovery of hydrocarbons reserves that in the opinion of the contractor warrant commercial development.
Commercial Discovery. A discovery of Hydrocarbons which, in the opinion of the Contractor, can be exploited commercially.
Commercial Discovery. 10.1. If the Contractor makes a discovery of any commercial field of hydrocarbon raw materials which can be, to his opinion, economically profitable then he will immediately inform the Competent Body thereof and within 30-day period develops Working Program in order to evaluate its reserves and information required for determination of profitability of the Field.
10.2. Within Exploration Period, the Contractor will submit Design of Test Operation (Exploration) to the Central Commission for Exploration (CCE).
10.3. The Contractor will execute Test Operation (Exploration) without conservation and draw up relevant documents essential for expert assessment of the field reserves.
