DISCOVERY, DEVELOPMENT AND PRODUCTION Clause Samples
DISCOVERY, DEVELOPMENT AND PRODUCTION. 10.1 If and when a Discovery is made within the Contract Area, the Contractor shall:
(a) forthwith inform the Management Committee and Government of the Discovery;
(b) promptly thereafter, but in no event later than a period of thirty (30) days from the date of the Discovery, furnish to the Management Committee and Government particulars, in writing, of the Discovery; and
(c) promptly run tests to determine whether the Discovery is of potential commercial interest and, within a period of sixty (60) days after completion of such tests, submit a report to the Management Committee containing data obtained from such tests and its analysis and interpretation thereof, together with a written notification of whether, in the Contractor’s opinion, such Discovery is of potential commercial interest and merits appraisal.
10.2 If the Contractor determines to conduct a drill stem or production test, in open hole or through perforated casing, with regard to any Exploration Well, it shall notify the Government of the time of such test at least forty eight (48) hours prior to the proposed test, and the Government shall have the right to have a representative present during such test.
10.3 If, pursuant to Article 10.1 (c), the Contractor notifies the Management Committee that the Discovery is of potential commercial interest, the Contractor shall prepare and submit to the Management Committee within one hundred and twenty (120) days of such notification, a proposed Appraisal Programme with a Work Programme and Budget to carry out an adequate and effective appraisal of such Discovery designed to achieve both the following objectives: (i) determine without delay, and, in any event, within the period specified in Article 10.5, whether such Discovery is a Commercial Discovery and (ii) determine, with reasonable precision, the boundaries of the area to be delineated as the Development Area.
10.4 The proposed Appraisal Programme shall be reviewed by the Management Committee within thirty (30) days after submission thereof pursuant to Article 10.3. The said Appraisal Programme, together with the Work Programme and Budget submitted by the Contractor, which may be revised or modified or amended by the Contractor in light of the Management Committee review, shall be adopted as the Appraisal Programme and the Contractor shall promptly commence implementation thereof; and the annual Budget for the Exploration Period, adopted pursuant to Article 5, shall be revised accordingly.
10.5 Th...
DISCOVERY, DEVELOPMENT AND PRODUCTION. If and when a Discovery is made within the Contract Area, the Contractor shall:
DISCOVERY, DEVELOPMENT AND PRODUCTION. If and when a Discovery is made within the Contract Area, the Contractor shall notify the Management Committee of the same as per the prescribed format within seven (7) days from the establishment of the Discovery (“Notification of Discovery” or “NOD”). The Contractor shall promptly run tests after completion of drilling, as it may determine to be required under Good International Petroleum Industry Practices (GIPIP) in respect of such Discovery, to determine whether the Discovery is of potential commercial interest and merits Appraisal, and further submits the information in relation to the particulars of such Discovery in writing as per the prescribed format within one hundred and eighty (180) days from the initial NOD to the Management Committee (such information relating to potential commercial interest is hereinafter referred to as “PCI Notice”). The Contractor shall conduct a drill stem or production test, in open hole or through perforated casing, with regard to any Exploration Well, it shall notify the Government of the time of such test at least forty eight (48) hours prior to the proposed test, and the Government shall have the right to have a representative present during such test.
DISCOVERY, DEVELOPMENT AND PRODUCTION. 10.1. If and when a Discovery is made within the Contract Area, the Contractor shall notify the Government, as per the format prescribed, within 7 (seven) days from the establishment of the Discovery (“Notification of Discovery” or “NOD”) and the Contractor shall promptly run tests, as it may be required under Good International Petroleum Industry Practices in respect of such Discovery, to determine whether the Discovery is of potential commercial interest (“PCI”).
10.2. After running the appropriate tests, the Contractor shall, within 180 (one hundred and eighty) days from the NOD, declare to the Government whether the Discovery is of PCI or not alongwith relevant information, in the format prescribed by the Government (“PCI Notice”).
10.3. If, pursuant to the above, the Contractor informs the Government that the Discovery merits Appraisal, the Contractor may submit an Appraisal Programme:
(a) no later than 6 (six) months from the date of submission of PCI Notice for Onland / Shallow Water Blocks;
(b) no later than 12 (twelve) Months from the date of submission of PCI Notice for Deep Water / Ultra Deep Water Blocks. The Appraisal Programme shall be for a maximum period of 30 (thirty) months for onland and 42 (forty-two) months for offshore, from the date of PCI Notice. The Discovery Area shall be determined by Contractor and such Discovery Area shall be retained by the Contractor and informed to the Government.
(a) The Contractor shall declare whether the Discovery is of commercial nature or not and where the Discovery is of commercial nature also submit the FDP to the Government, no later than:
(i) 36 (thirty-six) months of PCI Notice for Onland Blocks; and
(ii) 48 (forty-eight) months of PCI Notice for Offshore Blocks.
(b) The Contractor may extend the timeline for submission of the FDP to a maximum period of 24 (twenty four) months for Onland Blocks and 36 (thirty six) months for Offshore Blocks, in one or more instalments, by making a payment of USD 25,000 (USD twenty-five thousand) per quarter or part thereof to the Government at least 30 (thirty) days prior to the expiry of the timeline provided in sub-clause (a) above. The payment for seeking extension shall be made to the bank account prescribed by Government.
10.5. The Contractor shall carry out Mineral Oil Operations in accordance with the FDP and Good International Petroleum Industry Practices .
10.6. The Contractor may revise the FDP without changing the timelines for commencement of Commercia...
DISCOVERY, DEVELOPMENT AND PRODUCTION