Common use of Decommissioning and Abandonment Guarantees Clause in Contracts

Decommissioning and Abandonment Guarantees. The Contractor shall provide decommissioning and abandonment guarantee as of the Production Start Date, and, for that, it may use: performance bond; letter of credit; support fund; or other types of guarantees, at ANP’s discretion. The amount of the decommissioning and abandonment guarantee for a Development Area or Field shall be reviewed at the request of the Contractor or ANP, whenever there are events that change the cost of abandonment and decommissioning of Operations. The guarantee provided by the Contractor shall be equivalent to the expected cost for decommissioning and abandonment of the infrastructure already implemented. In the case of a guarantee provided through a support fund: the Contractors shall submit to ANP, every 15th of February and August each year, supporting documentation for the contributions made, as well as inform the adjusted balance of the fund; ANP may audit the procedures adopted by the Contractors in management of the support fund; the balance ascertained after all Operations required for decommissioning and abandonment of the Field are conducted shall be for the sole benefit of the Contracting Party. The provision of a decommissioning and abandonment guarantee does not exempt the Consortium Members from the obligation to execute all Operations required for decommissioning and abandonment of the Field. Properties to be Reversed Pursuant to articles 29, XV, and 32, paragraphs 1 and 2, of Law No. 12,351/2010, any and all personal and real properties, principal and ancillary, forming part of the Concession Area and that, at the Contracting Party’s sole discretion, based on ANP’s opinion, are necessary to enable continuity of the Operations or which use is considered of public interest shall become owned by the Federal Government and be managed by ANP in case of termination of this Agreement or relinquishment of plots of the Contract Area. Properties used in the Operations that are subject matter of a rental, lease, or charter agreement which useful life does not extend beyond the effectiveness of the Agreement and shall not become owned by the Contracting Party or by ANP’s management. With respect to properties which useful life extends beyond the effectiveness of the Agreement, the Contractor shall include in the rental, lease, or charter agreement a section that allows its assignment or renewal with a future Contractor, aiming at ensuring continuity of the Operations, as provided for in paragraph 14.9. In case properties are shared for Operations in two or more Fields, such properties may be withheld until completion of all Operations.

Decommissioning and Abandonment Guarantees. The Contractor Contracted Party shall provide decommissioning and abandonment guarantee as of the Production Start Date, and, for thattherefor, it may use: performance bond; letter of credit; financial support fund; or other types of guarantees, at ANP’s discretion. The amount of the decommissioning and abandonment guarantee for a Development Area or Field shall be reviewed at the request of the Contractor Contracted Party or ANP, whenever there are events that change the cost of abandonment and decommissioning of Operations. The guarantee provided by the Contractor Contracted Party shall be equivalent to the expected cost for decommissioning and abandonment of the infrastructure already implemented. In the case of a the guarantee is provided through a support fund: the Contractors Contracted Parties shall submit to ANP, every 15th of February and August each year, supporting documentation for the contributions made, as well as inform the adjusted balance of the fund; ANP may audit the procedures adopted by the Contractors Contracted Parties in the management of the support fund; the balance ascertained after all Operations required for decommissioning and abandonment of the Field are conducted shall be for the sole benefit of the Contracting Party. The provision of a decommissioning and abandonment guarantee does not exempt the Consortium Members from the obligation to execute all Operations required for decommissioning and abandonment of the Field. Properties to be Reversed Returned Pursuant to articles arts. 29, XV, and 32, paragraphs 1 and 2, of Law No. 12,351/2010, any and all personal and real properties, principal and ancillary, forming part of the Concession Contract Area and thatthat are necessary to enable continuity of the Operations or use of which is considered of public interest, at the Contracting Party’s sole discretion, based on ANP’s opinion, are necessary shall be returned to enable continuity of the Operations or which use is considered of public interest shall become owned by the Federal Government Contracting Party’s ownership, and be managed by ANP to ANP’s management in case of termination of this Agreement or relinquishment of plots of the Contract Area. Properties used in the Operations that are subject matter of a rental, lease, or charter agreement which agreements with useful life does not extend beyond shorter than the effectiveness of the Agreement and shall not become owned by be returned to the Contracting Party Party’s or by ANP’s management’s ownership. With respect to As for properties which with useful life extends beyond greater than the effectiveness of the Agreement, the Contractor Contracted Party shall include in the rental, lease, or charter agreement a section that allows its assignment or renewal with a future ContractorContracted Party, aiming at ensuring continuity of the Operations, as provided for in paragraph 14.914.7. In case of sharing of properties are shared for the Operations in of two or more Fields, such properties may be withheld until completion conclusion of all Operations.

Decommissioning and Abandonment Guarantees. The Contractor shall provide a decommissioning and abandonment guarantee as of the Production Start Date, and, for that, it may use: performance bond; letter of credit; support fund; or other types of guarantees, guarantees accepted at ANP’s discretion. The amount of the decommissioning and abandonment guarantee for a Development Area or Field shall be reviewed at the request of the Contractor or ANP, whenever there are events that change the cost of abandonment and decommissioning of Operations. The guarantee provided by the Contractor shall be equivalent to the expected cost for of decommissioning and abandonment of the infrastructure already implemented. In the case of a guarantee provided through a support fund: the Contractors shall submit to ANP, every 15th of February and August each year, supporting documentation for the contributions made, as well as inform the adjusted balance of the fund; ANP may audit the procedures adopted by the Contractors in management of the support fund; the balance ascertained after all Operations required for decommissioning and abandonment of the Field are conducted shall be for the sole benefit of the Contracting Party. The provision of a decommissioning and abandonment guarantee does not exempt the Consortium Members from the obligation to execute all Operations required for decommissioning and abandonment of the Field. Properties to be Reversed Pursuant to articles 29, XV, and 32, paragraphs 1 and 2, of Law No. 12,351/2010, any and all personal and real properties, principal and ancillary, forming part of the Concession Area and that, at the Contracting Party’s sole discretion, based on ANP’s opinion, are necessary to enable continuity of the Operations or which use is considered of public interest shall become owned by the Federal Government and be managed by ANP in case of termination of this Agreement or relinquishment of plots of the Contract Area. Properties used in the Operations that are subject matter of a rental, lease, or charter agreement which useful life does not extend beyond the effectiveness of the Agreement and that are used in the Operations shall not become owned by the Contracting Party or by ANP’s management. With respect to properties which useful life extends beyond the effectiveness of the Agreement, the Contractor shall include in the rental, lease, or charter agreement a section that allows its assignment or renewal with a future Contractor, aiming at ensuring continuity of the Operations, as provided for in paragraph 14.914.8. In case properties are shared for Operations in two or more Fields, such properties may be withheld until completion of all Operations.

Decommissioning and Abandonment Guarantees. The Contractor Contracted Party shall provide decommissioning and abandonment guarantee as of the Production Start Date, and, for thattherefor, it may use: performance bond; letter of credit; financial support fund; or other types of guarantees, at ANP’s discretion. The amount of the decommissioning and abandonment guarantee for a Development Area or Field shall be reviewed at the request of the Contractor Contracted Party or ANP, whenever there are events that change the cost of abandonment and decommissioning of Operations. The guarantee provided by the Contractor Contracted Party shall be equivalent to the expected cost for decommissioning and abandonment of the infrastructure already implemented. In the case of a the guarantee is provided through a support fund: the Contractors Contracted Parties shall submit to ANP, every 15th of February and August each year, supporting documentation for the contributions made, as well as inform the adjusted balance of the fund; ANP may audit the procedures adopted by the Contractors Contracted Parties in the management of the support fund; the balance ascertained after all Operations required for decommissioning and abandonment of the Field are conducted shall be for the sole benefit of the Contracting Party. The provision of a decommissioning and abandonment guarantee does not exempt the Consortium Members from the obligation to execute all Operations required for decommissioning and abandonment of the Field. Properties to be Reversed Returned Pursuant to articles 29, XV, and 32, paragraphs 1 and 2, of Law No. 12,351/2010, any and all personal and real properties, principal and ancillary, forming part of the Concession Contract Area and that, at the Contracting Party’s sole discretion, based on ANP’s opinion, are necessary to enable continuity of the Operations or use of which use is considered of public interest shall become owned by be returned to the Federal Government Contracting Party’s ownership and be managed by ANP to ANP’s management, in case of termination of this Agreement or relinquishment of plots of the Contract AreaAgreement. Properties used in the Operations that are subject matter of a rental, lease, or charter agreement which agreements with useful life does not extend beyond shorter than the effectiveness of the Agreement and shall not become owned by be returned to the Contracting Party Party’s or by ANP’s management’s ownership. With respect to As for properties which with useful life extends beyond greater than the effectiveness of the Agreement, the Contractor Contracted Party shall include a section in the rental, lease, or charter agreement a section that allows its assignment or renewal with a future ContractorContracted Party, aiming at ensuring continuity of the Operations, as provided for in paragraph 14.910.8. In case of sharing of properties are shared for the Operations in of two or more Fields, such properties may be withheld until completion conclusion of all Operations.

Decommissioning and Abandonment Guarantees. The Contractor Concessionaire shall provide decommissioning and abandonment guarantee as of the Production Start Date, and, for that, it may use: performance bond; letter of credit; financial support fund; or other types of guaranteesguarantee, at ANP’s discretion. The amount of the decommissioning and abandonment guarantee for a Development Area or Field shall be reviewed at the request of the Contractor Concessionaire or ANP, whenever if there are events that change the cost of abandonment and decommissioning of Operations. The guarantee provided by the Contractor Concessionaire shall be equivalent to the cost expected cost for decommissioning and abandonment of the infrastructure already implemented. In the case of a guarantee provided through a support fund: the Contractors Concessionaire shall submit to ANP, every on 15th of February and August of each year, supporting documentation for the contributions made, as well as inform the adjusted balance of the fund; ANP may audit the procedures procedure adopted by the Contractors Concessionaire in management of the financial support fund; the balance ascertained after all Operations required for decommissioning and abandonment of the Field are conducted shall be for the sole benefit of the Contracting PartyConcessionaire. The provision of a decommissioning and abandonment guarantee does not exempt the Consortium Members Concessionaire from the obligation to execute all Operations required for decommissioning and abandonment of the FieldField at its own account and risk. Properties to be Reversed Pursuant to articles 29, XV, item VI of arts. 28 and 32, paragraphs 1 and 2, 43 of Law No. 12,351/20109,478/1997 and of the Applicable Laws and Regulations, any and all personal and real properties, principal and ancillary, forming part of the Concession Area and that, at the Contracting PartyANP’s sole discretion, based on ANP’s opinion, are necessary to enable continuity of the Operations or which use is considered of public interest interest, shall become owned by the Federal Government and be managed by ANP in case of termination of this Agreement or relinquishment of plots of the Contract Concession Area. Properties used in the Operations that are subject matter of a rental, lease, or charter agreement which useful life does not extend beyond the effectiveness of the Agreement and shall not become owned by the Contracting Party or by ANP’s management. With respect to properties which useful life extends beyond the effectiveness of the Agreement, the Contractor shall include in the rental, lease, or charter agreement a section that allows its assignment or renewal with a future Contractor, aiming at ensuring continuity of the Operations, as provided for in paragraph 14.9. In case of sharing of properties are shared for the Operations in of two or more Fields, such properties may be withheld until completion conclusion of all Operations. Removal of Non-Reversed Properties Properties not reversed pursuant to paragraph 18.9, including useless material, shall be removed and/or disposed of by the Concessionaire, at its own account and risk, pursuant to the provisions of this Agreement and under the Applicable Laws and Regulations.

Decommissioning and Abandonment Guarantees. The Contractor Concessionaire shall provide a decommissioning and abandonment guarantee as of the Production Start Date, and, for that, it may use: performance bond; letter of credit; financial support fund; or other types of guarantees, at ANP’s discretion. The amount of the decommissioning and abandonment guarantee for a Development Area or Field shall be reviewed at the request of the Contractor Concessionaire or ANP, ANP whenever there are events that change the cost of abandonment and decommissioning of Operations. The guarantee provided shall be submitted by the Contractor shall be equivalent Concessionaire in an amount sufficient to cover the expected cost for of decommissioning and abandonment of the infrastructure already implementedimplemented or cover the amount calculated pursuant to the Applicable Laws and Regulations. In the case of a the guarantee is provided through a support fund: the Contractors Concessionaire shall submit to ANP, every 15th of February and August each year, supporting documentation for the contributions made, as well as inform the adjusted balance of the fundfund pursuant to the Applicable Laws and Regulations; ANP may audit the procedures procedure adopted by the Contractors in Concessionaire for management of the financial support fund; the balance ascertained after all Operations required for decommissioning and abandonment of the Field are conducted shall be for the sole benefit of the Contracting PartyConcessionaire. The provision of a decommissioning and abandonment guarantee does not exempt the Consortium Members Concessionaire from the obligation to execute all Operations required for decommissioning and abandonment of the FieldField at its own account and risk. Properties to be Reversed Returned Pursuant to articles 2928 and 43, XV, and 32, paragraphs 1 and 2item VI, of Law No. 12,351/20109,478/1997 and to the Applicable Laws and Regulations, any and all personal and real properties, principal and ancillary, forming part of the Concession Area and that, at the Contracting PartyANP’s sole discretion, based on ANP’s opinion, are necessary to enable continuity of the Operations or which use is considered of public interest interest, shall become pass to and be the owned by the Federal Government and be managed by ANP in case of termination of this Agreement or relinquishment of plots of the Contract Concession Area. Properties used in the Operations that are subject matter of a rental, lease, or charter agreement which useful life does not extend beyond the effectiveness of the Agreement and shall not become owned by the Contracting Party or by ANP’s management. With respect to properties which useful life extends beyond the effectiveness of the Agreement, the Contractor shall include in the rental, lease, or charter agreement a section that allows its assignment or renewal with a future Contractor, aiming at ensuring continuity of the Operations, as provided for in paragraph 14.9. In case of sharing of properties are shared for the Operations in of two or more Fields, such properties may be withheld retained until completion conclusion of all Operations.

Decommissioning and Abandonment Guarantees. The Contractor Concessionaire shall provide decommissioning and abandonment guarantee as of the Production Start Date, and, for that, it may use: performance bond; letter of credit; financial support fund; or other types of guarantees, at ANP’s discretion. The amount of the decommissioning and abandonment guarantee for a Development Area or Field shall be reviewed at the request of the Contractor Concessionaire or ANP, whenever there are events that change the cost of abandonment and decommissioning of Operations. The guarantee provided by the Contractor Concessionaire shall be equivalent to the cost expected cost for decommissioning and abandonment of the infrastructure already implemented. In the case of a guarantee provided through a support fund: the Contractors Concessionaire shall submit to ANP, every on 15th of February and August of each year, supporting documentation for the contributions made, as well as inform the adjusted balance of the fund; ANP may audit the procedures procedure adopted by the Contractors Concessionaire in management of the financial support fund; the balance ascertained after all Operations required for decommissioning and abandonment of the Field are conducted shall be for the sole benefit of the Contracting PartyConcessionaire. The provision of a decommissioning and abandonment guarantee does not exempt the Consortium Members Concessionaire from the obligation to execute all Operations required for decommissioning and abandonment of the FieldField at its own account and risk. Properties to be Reversed Pursuant to articles 2928 and 43, XV, and 32, paragraphs 1 and 2VI, of Law No. 12,351/20109,478/1997 and to the Applicable Laws and Regulations, any and all personal and real properties, principal and ancillary, forming part of the Concession Area and that, at the Contracting PartyANP’s sole discretion, based on ANP’s opinion, are necessary to enable continuity of the Operations or which use is considered of public interest interest, shall become owned by the Federal Government and be managed by ANP in case of termination of this Agreement or relinquishment of plots of the Contract Concession Area. Properties used in the Operations that are subject matter of a rental, lease, or charter agreement which useful life does not extend beyond the effectiveness of the Agreement and shall not become owned by the Contracting Party or by ANP’s management. With respect to properties which useful life extends beyond the effectiveness of the Agreement, the Contractor shall include in the rental, lease, or charter agreement a section that allows its assignment or renewal with a future Contractor, aiming at ensuring continuity of the Operations, as provided for in paragraph 14.9. In case of sharing of properties are shared for the Operations in of two or more Fields, such properties may be withheld until completion conclusion of all Operations.

Decommissioning and Abandonment Guarantees. The Contractor Concessionaire shall provide decommissioning and abandonment guarantee as of the Production Start Date, and, for that, it may use: performance bond; letter of credit; financial support fund; or other types of guaranteesguarantee, at ANP’s discretion. The amount of the decommissioning and abandonment guarantee for a Development Area or Field shall be reviewed at the request of the Contractor Concessionaire or ANP, whenever if there are events that change the cost of abandonment and decommissioning of Operations. The guarantee provided shall be submitted by the Contractor shall be equivalent Concessionaire in an amount sufficient to cover the expected cost for of decommissioning and abandonment of the infrastructure already implementedimplemented or cover the amount calculated pursuant to the Applicable Laws and Regulations. In the case of a guarantee provided through a support fund: the Contractors Concessionaire shall submit to ANP, every 15th of February and August each year, supporting documentation for the contributions made, as well as inform the adjusted balance of the fundfund pursuant to the Applicable Laws and Regulations; ANP may audit the procedures procedure adopted by the Contractors Concessionaire in management of the financial support fund; the balance ascertained after all Operations required for decommissioning and abandonment of the Field are conducted shall be for the sole benefit of the Contracting PartyConcessionaire. The provision of a decommissioning and abandonment guarantee does not exempt the Consortium Members Concessionaire from the obligation to execute all Operations required for decommissioning and abandonment of the FieldField at its own account and risk. The financial guarantees for decommissioning may be combined in order to total the amount to be guaranteed. Properties to be Reversed Pursuant to articles 29, XV, item VI of arts. 28 and 32, paragraphs 1 and 2, 43 of Law No. 12,351/20109,478/1997 and of the Applicable Laws and Regulations, any and all personal and real properties, principal and ancillary, forming part of the Concession Area and that, at the Contracting PartyANP’s sole discretion, based on ANP’s opinion, are necessary to enable continuity of the Operations or which use is considered of public interest interest, shall become owned by the Federal Government and be managed by ANP in case of termination of this Agreement or relinquishment of plots of the Contract Concession Area. Properties used in the Operations that are subject matter of a rental, lease, or charter agreement which useful life does not extend beyond the effectiveness of the Agreement and shall not become owned by the Contracting Party or by ANP’s management. With respect to properties which useful life extends beyond the effectiveness of the Agreement, the Contractor shall include in the rental, lease, or charter agreement a section that allows its assignment or renewal with a future Contractor, aiming at ensuring continuity of the Operations, as provided for in paragraph 14.9. In case of sharing of properties are shared for the Operations in of two or more Fields, such properties may be withheld until completion conclusion of all Operations.

Decommissioning and Abandonment Guarantees. The Contractor Concessionaire shall provide decommissioning and abandonment guarantee as of the Production Start Date, and, for that, it may use: performance bond; letter of credit; financial support fund; or other types of guaranteesguarantee, at ANP’s discretion. The amount of the decommissioning and abandonment guarantee for a Development Area or Field shall be reviewed at the request of the Contractor Concessionaire or ANP, whenever if there are events that change the cost of abandonment and decommissioning of Operations. The guarantee provided by the Contractor Concessionaire shall be equivalent to the cost expected cost for decommissioning and abandonment of the infrastructure already implemented. In the case of a guarantee provided through a support fund: the Contractors Concessionaire shall submit to ANP, every on 15th of February and August of each year, supporting documentation for the contributions made, as well as inform the adjusted balance of the fund; ANP may audit the procedures procedure adopted by the Contractors Concessionaire in management of the financial support fund; the balance ascertained after all Operations required for decommissioning and abandonment of the Field are conducted shall be for the sole benefit of the Contracting PartyConcessionaire. The provision of a decommissioning and abandonment guarantee does not exempt the Consortium Members Concessionaire from the obligation to execute all Operations required for decommissioning and abandonment of the FieldField at its own account and risk. Properties to be Reversed Pursuant to articles 29, XV, item VI of arts. 28 and 32, paragraphs 1 and 2, 43 of Law No. 12,351/20109,478/1997 and of the Applicable Laws and Regulations, any and all personal and real properties, principal and ancillary, forming part of the Concession Area and that, at the Contracting PartyANP’s sole discretion, based on ANP’s opinion, are necessary to enable continuity of the Operations or which use is considered of public interest interest, shall become owned by the Federal Government and be managed by ANP in case of termination of this Agreement or relinquishment of plots of the Contract Concession Area. Properties used in the Operations that are subject matter of a rental, lease, or charter agreement which useful life does not extend beyond the effectiveness of the Agreement and shall not become owned by the Contracting Party or by ANP’s management. With respect to properties which useful life extends beyond the effectiveness of the Agreement, the Contractor shall include in the rental, lease, or charter agreement a section that allows its assignment or renewal with a future Contractor, aiming at ensuring continuity of the Operations, as provided for in paragraph 14.9. In case of sharing of properties are shared for the Operations in of two or more Fields, such properties may be withheld until completion conclusion of all Operations. Removal of Non-Reversed Properties Properties not reversed, including useless material, shall be removed and/or disposed of by the Concessionaire, at its own account and risk, pursuant to the provisions of this Agreement and under the Applicable Laws and Regulations.

Decommissioning and Abandonment Guarantees. The Contractor Concessionaire shall provide a decommissioning and abandonment guarantee as of the Production Start Date, and, for that, it may use: performance bond; letter of credit; financial support fund; or other types of guarantees, guarantee accepted at ANP’s discretion. The amount of the decommissioning and abandonment guarantee for a Development Area or Field shall be reviewed at the request of the Contractor Concessionaire or ANP, whenever if there are events that change the cost of abandonment and decommissioning of Operations. The guarantee provided by the Contractor shall be equivalent to the expected cost for of decommissioning and abandonment of the infrastructure already implemented. In the case of a guarantee provided through a financial support fund: the Contractors Concessionaire shall submit to ANP, every 15th day 15 of February and August each year, supporting documentation for the contributions made, as well as inform the adjusted balance of the fund; ANP may audit the procedures procedure adopted by the Contractors Concessionaire in management of the financial support fund; the balance ascertained after all Operations required for decommissioning and abandonment of the Field are conducted shall be for the sole benefit of the Contracting PartyConcessionaire. The provision of a decommissioning and abandonment guarantee does not exempt the Consortium Members Concessionaire from the obligation to execute all Operations required for decommissioning and abandonment of the FieldField at its own account and risk. Properties to be Reversed Pursuant to articles 29, XV, item VI of arts. 28 and 32, paragraphs 1 and 2, 43 of Law No. 12,351/20109,478/1997 and the Applicable Laws and Regulations, any and all personal and real properties, principal and ancillary, forming part of the Concession Area and that, at the Contracting PartyANP’s sole discretion, based on ANP’s opinion, are necessary to enable continuity of the Operations or which use is considered of public interest shall become owned by the Federal Government and be managed by ANP in case of termination of this Agreement or relinquishment of plots of the Contract Concession Area. Properties used in the Operations that are subject matter of a rental, lease, or charter agreement which useful life does not extend beyond the effectiveness of the Agreement and shall not become owned by the Contracting Party or by ANP’s management. With respect to properties which useful life extends beyond the effectiveness of the Agreement, the Contractor shall include in the rental, lease, or charter agreement a section that allows its assignment or renewal with a future Contractor, aiming at ensuring continuity of the Operations, as provided for in paragraph 14.9. In case properties are shared for Operations in two or more Fields, such properties may be withheld until completion of all Operations. Removal of Non-Reversed Properties Properties not reversed pursuant to paragraph 18.9, including useless material, shall be removed and/or disposed of by the Concessionaire, at its own account and risk, pursuant to provisions of this Agreement and the Applicable Laws and Regulations.