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 The Contractor shall in respect of a Discovery of Crude Oil advise the Management Committee by notice in writing within a period of eighteen (18) months for onland and shallow water blocks and thirty (30) months for deepwater blocks from the date on which the notice provided for in Article 10.1 (c) was delivered, whether such Discovery should be declared a Commercial Discovery or not. Such notice shall be accompanied by a report on the Discovery setting forth all relevant technical and economic data including estimated recoverable reserves, sustainable production levels, estimated development and production expenditures, prevailing and forecasted prices, and other pertinent technical and economic factors according to modern oilfield and petroleum industry practices as well as all evaluations, interpretations and analyses of such data and feasibility studies relating to the Discovery prepared by or for the Contractor, with respect to the Discovery and any other relevant information. If the Contractor is of the opinion that Crude Oil has been discovered in commercial quantities, it shall submit the proposal to the Management Committee for review that the Discovery be declared a Commercial Discovery. In the case of a Discovery of Gas, the provisions of Article 21 shall apply. 10.6 The Management Committee shall, within forty (40) days of the date of the notice referred to in Article 10.5, review the proposal of the Contractor and request any other additional information it may reasonably require so as to complete the review of the proposal made by the Contractor. The Contractor shall furnish the additional information within thirty (30) days from the date of the request. The review by the Management Committee shall be made and conveyed to the Contractor within the later of (a) ninety (90) days from the date of notice referred to in Article 10.5 or (b) forty (40) days of receipt of such other information as may be required under this Article. 10.7 If the Contractor declares the Discovery a Commercial Discovery after taking into account the advice of the Management Committee as referred in the Article 10.6, within two hundred (200) days of the declaration of the Discovery as a Commercial Discovery, the Contractor shall submit to the Management Committee a comprehensive development plan of the Commercial Discovery which shall: (a) relate to the Discovery Area and contain a Reservoir or part thereof and the boundaries of the proposed Development Area; (b) be designed to ensure the most efficient, beneficial and timely use of the Petroleum resources discovered; and (c) be prepared in accordance with sound engineering, economic, safety and environmental principles recognised in the generally accepted modern oilfield and petroleum industry practices. Such plan shall contain detailed proposals by the Contractor for the construction, establishment and operation of all facilities and services for and incidental to the recovery, storage and transportation of the Petroleum from the proposed Development Area to the Delivery Point together with all data and supporting information including but not limited to: (i) description of the nature and characteristic of the Reservoir, data, statistics, interpretations and conclusions on all aspects of the geology, Reservoir evaluation, Petroleum engineering factors, Reservoir models, estimates of reserve in place, possible production magnitude, nature and ratio of Petroleum fluids and analysis of producible Petroleum; (ii) outlines of the development project and/or alternative development projects, if any, describing the production facilities to be installed and the number of Wxxxx to be drilled under such development project and/or alternative development projects, if any; (iii) estimate of the rate of production to be established and projection of the possible sustained rate of production in accordance with modern oilfield and petroleum industry practices under such development project and/or alternative development projects, if any, which will ensure that the area does not suffer an excessive rate of decline of production or an excessive loss of Reservoir pressure; (iv) estimates of Development Costs and Production Costs under such development project and/or alternative development projects, if any; (v) Contractor’s recommendations as to the particular project that it would prefer; (vi) Work Programme and Budget for development proposals relating to the proposed Development Area; (vii) anticipated adverse impact on the environment and measures to be taken for prevention or minimisation thereof and for general protection of the environment in conduct of operations; (viii) measures to be taken for the health and safety of persons employed in Petroleum Operations; (ix) the information required in Article 21. 10.8 A proposed development plan submitted by the Contractor pursuant to Article 10.7 may be approved by the Management Committee within one hundred and ten (110) days of submission thereof or eighty (80) days of receipt of any additional information requested by the Management Committee. In case the Management Committee requires any reasonable additional information, the same shall be requested by it within eighty (80) days from the submission of the development plan. The Contractor shall provide such additional information within thirty (30) days from the request by the Management Committee. If, within a period of one hundred and ten (110) days after submission of a proposed development plan or eighty (80) days from the receipt of any additional information, where asked by the Management Committee, the Management Committee fails to convey a decision to the Contractor, the Contractor shall have option to submit the proposal to the Government. Also, where, the Management Committee rejects the development plan of the Contractor, the Contractor can submit the development plan for the approval of the Government. The Government shall respond on the proposed development plan submitted by the Contractor within one hundred and ten (110) days. In case Government refuses to approve the proposed development plan, it shall convey the reasons for such refusal and the Contractor shall be given opportunity to make appropriate modifications to meet concerns of Government and the provisions of the foregoing Article and re-submit the plan within ninety (90) days from the date of receipt of refusal from the Government. 10.9 A Development Plan approved by the Management Committee or Government, as may be the case, from time to time shall commit the Contractor to the obligations stipulated in Articles 10.10 to 10.12.
Appears in 4 contracts
Samples: Production Sharing Contract (Geoglobal Resources Inc), Production Sharing Contract (Geoglobal Resources Inc), Production Sharing Contract (Geoglobal Resources Inc)
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 '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 The Contractor shall in respect of a Discovery of Crude Oil advise the Management Committee by notice in writing within a period of eighteen (18) months for onland and shallow water blocks and thirty (30) months for deepwater blocks from the date on which the notice provided for in Article 10.1 (c) was delivered, whether such Discovery should be declared a Commercial Discovery or not. Such notice shall be accompanied by a report on the Discovery setting forth all relevant technical and economic data including estimated recoverable reserves, sustainable production levels, estimated development and production expenditures, prevailing and forecasted prices, and other pertinent technical and economic factors according to modern oilfield and petroleum industry practices as well as all evaluations, interpretations and analyses of such data and feasibility studies relating to the Discovery prepared by or for the Contractor, with respect to the Discovery and any other relevant information. If the Contractor is of the opinion that Crude Oil has been discovered in commercial quantities, it shall submit the proposal to the Management Committee for review that the Discovery be declared a Commercial Discovery. In the case of a Discovery of Gas, the provisions of Article 21 shall apply.
10.6 The Management Committee shall, within forty (40) days of the date of the notice referred to in Article 10.5, review the proposal of the Contractor and request any other additional information it may reasonably require so as to complete the review of the proposal made by the Contractor. The Contractor shall furnish the additional information within thirty (30) days from the date of the request. The review by the Management Committee shall be made and conveyed to the Contractor within the later of (a) ninety (90) days from the date of notice referred to in Article 10.5 or (b) forty (40) days of receipt of such other information as may be required under this Article.
10.7 If the Contractor declares the Discovery a Commercial Discovery after taking into account the advice of the Management Committee as referred in the Article 10.6, within two hundred (200) days of the declaration of the Discovery as a Commercial Discovery, the Contractor shall submit to the Management Committee a comprehensive development plan of the Commercial Discovery which shall:
(a) relate to the Discovery Area and contain a Reservoir or part thereof and the boundaries of the proposed Development Area;
(b) be designed to ensure the most efficient, beneficial and timely use of the Petroleum resources discovered; and
(c) be prepared in accordance with sound engineering, economic, safety and environmental principles recognised in the generally accepted modern oilfield and petroleum industry practices. Such plan shall contain detailed proposals by the Contractor for the construction, establishment and operation of all facilities and services for and incidental to the recovery, storage and transportation of the Petroleum from the proposed Development Area to the Delivery Point together with all data and supporting information including but not limited to:
(i) description of the nature and characteristic of the Reservoir, data, statistics, interpretations and conclusions on all aspects of the geology, Reservoir evaluation, Petroleum engineering factors, Reservoir models, estimates of reserve in place, possible production magnitude, nature and ratio of Petroleum fluids and analysis of producible Petroleum;
(ii) outlines of the development project and/or alternative development projects, if any, describing the production facilities to be installed and the number of Wxxxx to be drilled under such development project and/or alternative development projects, if any;
(iii) estimate of the rate of production to be established and projection of the possible sustained rate of production in accordance with modern oilfield and petroleum industry practices under such development project and/or alternative development projects, if any, which will ensure that the area does not suffer an excessive rate of decline of production or an excessive loss of Reservoir pressure;
(iv) estimates of Development Costs and Production Costs under such development project and/or alternative development projects, if any;
(v) Contractor’s recommendations as to the particular project that it would prefer;
(vi) Work Programme and Budget for development proposals relating to the proposed Development Area;
(vii) anticipated adverse impact on the environment and measures to be taken for prevention or minimisation thereof and for general protection of the environment in conduct of operations;
(viii) measures to be taken for the health and safety of persons employed in Petroleum Operations;
(ix) the information required in Article 21.
10.8 A proposed development plan submitted by the Contractor pursuant to Article 10.7 may be approved by the Management Committee within one hundred and ten (110) days of submission thereof or eighty (80) days of receipt of any additional information requested by the Management Committee. In case the Management Committee requires any reasonable additional information, the same shall be requested by it within eighty (80) days from the submission of the development plan. The Contractor shall provide such additional information within thirty (30) days from the request by the Management Committee. If, within a period of one hundred and ten (110) days after submission of a proposed development plan or eighty (80) days from the receipt of any additional information, where asked by the Management Committee, the Management Committee fails to convey a decision to the Contractor, the Contractor shall have option to submit the proposal to the Government. Also, where, the Management Committee rejects the development plan of the Contractor, the Contractor can submit the development plan for the approval of the Government. The Government shall respond on the proposed development plan submitted by the Contractor within one hundred and ten (110) days. In case Government refuses to approve the proposed development plan, it shall convey the reasons for such refusal and the Contractor shall be given opportunity to make appropriate modifications to meet concerns of Government and the provisions of the foregoing Article and re-submit the plan within ninety (90) days from the date of receipt of refusal from the Government.
10.9 A Development Plan approved by the Management Committee or Government, as may be the case, from time to time shall commit the Contractor to the obligations stipulated in Articles 10.10 to 10.12.
Appears in 3 contracts
Samples: Production Sharing Contract, Production Sharing Contract, Production Sharing Contract
DISCOVERY, DEVELOPMENT AND PRODUCTION. 10.1 If and when 7.1 Where, pursuant to Section 17 of the Act, notice has been given to the Government of a Discovery is made within in the Contract Area, the Contractor shall:
(a) Licensee shall 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 steps it proposes to take to satisfy the requirements of Section 17(1)(a)(iii) of the Act.
7.2 Unless, following a Discovery by Licensee in the Contract Area, Licensee gives in respect of such test at least forty eight (48) hours prior Discovery a notice to the proposed testMinister for the purpose of paragraph A of the provision to section 17 (1) (b) of the Act or unless the provisions of paragraph B of that Proviso are otherwise applicable. Licensee shall promptly after the technical evaluation of the test results relating to such Discovery has been completed, 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 for the Management consideration of the Advisory Committee within one hundred and twenty (120) days of such notification, a proposed its proposals for an Appraisal Programme with a Work Programme and Budget to carry out an adequate and effective appraisal of such Discovery designed to achieve both meet its obligations as Licensee under the following objectives: (i) determine without delay, andAct. Notwithstanding the foregoing, in any event, within the period specified in Article 10.5, whether such Discovery is a Commercial Discovery and (ii) determine, with reasonable precision, event that Licensee notifies 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 Government 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 The Contractor shall in respect of a Discovery of Crude Oil advise the Management Committee by notice in writing within a period of eighteen (18) months for onland and shallow water blocks and thirty (30) months for deepwater blocks from following the date on which its technical evaluation of the notice provided test results relating to a Discovery has been submitted to the Government, the said Discovery does not in and of itself warrant immediate appraisal and provides reasonable justification therefor, an exemption from the requirements of Section 17 (1)(b) of the Act may be granted by the Minister, pursuant to paragraph B of the proviso to that Section, for so long thereafter as Licensee is carrying out continuous Exploration Operations in Article 10.1 (c) was deliveredthe Contract Area.
7.3 As soon as the Advisory Committee has, pursuant to paragraph 5.3.2, reviewed and approved an Appraisal Programme submitted by Licensee as aforesaid, Licensee shall promptly thereafter commence implementation thereof.
i. If during the; term of any Exploration Licence or renewals thereof granted pursuant to this Agreement, Licensee makes a Discovery of Petroleum in the Contract Area which alone, or in conjunction with other discoveries previously made in the Contract Area might be developed and brought into early production with a view to satisfying the internal consumption requirements of Uganda, the Government may notify licensee accordingly upon which the parties shall meet to determine whether such Discovery should be declared a Commercial the development of the said Discovery or notDiscoveries would be economically and technically feasible.
ii. Such notice shall be accompanied by a report on In determining whether the Discovery setting forth all relevant technical or Discoveries as the case may be is (are) economically and economic data including estimated recoverable reservestechnically feasible, sustainable the parties shall consider whether an early production levelsscheme would, estimated development and production expendituresinter alia, prevailing and forecasted pricesjeopardise the subsequent recovery of Petroleum from the Petroleum reservoir(s), and other pertinent technical and economic factors according to modern oilfield and petroleum industry practices as well as all evaluations, interpretations and analyses create a health or safety risk or would otherwise involve a departure from the standards of such data and feasibility studies relating to the Discovery prepared by or for the Contractor, with respect to the Discovery and any other relevant information. If the Contractor is of the opinion that Crude Oil has been discovered in commercial quantities, it shall submit the proposal to the Management Committee for review that the Discovery be declared a Commercial DiscoveryGood Oilfield Practice.
iii. In the event that the parties determine the Discovery or Discoveries as the case may be to be economically and technically feasible and agree upon the terms and conditions for the implementation of an early production scheme (including offtake arrangements), a Production Licence shall be granted to Licensee in respect of the Discovery Area(s) subject thereto and thereafter Licensee shall complete the facilities necessary for the Government to take delivery of Gasproduction from the said Discovery Area(s) ex-field and all costs associated with the taking of delivery therefrom shall be for the Government's account. It is understood, however, that Licensee shall not be required to produce crude oil at a rate higher than the Maximum Efficient Rate in connection with the scheme.
iv. Any crude oil production delivered to the Government pursuant to the provisions of this Article 21 7.4 (iii) shall apply.
10.6 The Management Committee shall, within forty (40) days serve to reduce Licensee's obligation to otherwise supply crude oil for the internal consumption requirements of Uganda pursuant to Paragraph 15.1 and will not prejudice Licensee's rights under paragraph 7.8 thereafter in respect of the date subsequent grant of a Production Licence in relation to a wider Discovery Area(s) which includes the notice referred said Discovery Area(s). It is understood, however, that crude oil production shall continue to in Article 10.5, review the proposal of the Contractor and request any other additional information it may reasonably require so as to complete the review of the proposal made by the Contractor. The Contractor shall furnish the additional information within thirty (30) days from the date of the request. The review by the Management Committee shall be made and conveyed available to the Contractor within the later of (a) ninety (90) days from the date of notice referred to in Article 10.5 or (b) forty (40) days of receipt of such other information as may be required under this Article.
10.7 If the Contractor declares the Discovery a Commercial Discovery after taking into account the advice of the Management Committee as referred in the Article 10.6, within two hundred (200) days of the declaration of the Discovery as a Commercial Discovery, the Contractor shall submit to the Management Committee a comprehensive development plan of the Commercial Discovery which shall:
(a) relate to the Discovery Area and contain a Reservoir or part thereof and the boundaries of the proposed Development Area;
(b) be designed to ensure the most efficient, beneficial and timely use of the Petroleum resources discovered; and
(c) be prepared Government in accordance with sound engineering, economic, safety the terms and environmental principles recognised conditions agreed to in the generally accepted modern oilfield and petroleum industry practices. Such plan shall contain detailed proposals by the Contractor for the construction, establishment and operation of all facilities and services for and incidental to the recovery, storage and transportation of the Petroleum from the proposed Development Area to the Delivery Point together with all data and supporting information including but not limited to:
(i) description of the nature and characteristic of the Reservoir, data, statistics, interpretations and conclusions on all aspects of the geology, Reservoir evaluation, Petroleum engineering factors, Reservoir models, estimates of reserve in place, possible production magnitude, nature and ratio of Petroleum fluids and analysis of producible Petroleum;
(ii) outlines of the development project and/or alternative development projects, if any, describing the production facilities to be installed and the number of Wxxxx to be drilled under such development project and/or alternative development projects, if any;
7.4 (iii) estimate above.
v. Nothing in this Article shall require Licensee to undertake the completion of the rate field facilities required for the early production scheme in the event that Licensee reasonably determines that such scheme (including the terms and conditions for the implementation thereof) is not economically or technically feasible.
7.5 Before applying for a Production Licence pursuant to Section 19 of production the Act, Licensee shall consult with the Advisory Committee in connection with the preparation of a Development Plan to be established and projection of submitted by Licensee to the possible sustained rate of production Minister in accordance with modern oilfield and petroleum industry practices under such development project and/or alternative development projects, if any, which will ensure that Section 20 of the area does not suffer an excessive rate of decline of production Act.
7.6 If the parties are unable to settle amicably any dispute or an excessive loss of Reservoir pressure;
(iv) estimates of Development Costs and Production Costs under such development project and/or alternative development projects, if any;
(v) Contractor’s recommendations difference as to whether the particular project that it would prefer;
(vi) Work Programme and Budget for development proposals relating to Development Plan meets the proposed Development Area;
(vii) anticipated adverse impact on the environment and measures to be taken for prevention or minimisation thereof and for general protection requirements of Section 22 of the environment in conduct of operations;
(viii) measures to be taken for the health and safety of persons employed in Petroleum Operations;
(ix) the information required in Article 21.
10.8 A proposed development plan submitted by the Contractor pursuant to Article 10.7 may be approved by the Management Committee Act within one hundred and ten (110) days of submission thereof or eighty (80) days of receipt of any additional information requested by the Management Committee. In case the Management Committee requires any reasonable additional information, the same shall be requested by it within eighty (80) days from the submission of the development plan. The Contractor shall provide such additional information within thirty (30) days from the request by the Management Committee. If, within a period of one hundred and ten (110) days after submission of a proposed development plan or eighty (80) days from the receipt of any additional information, where asked by the Management Committee, the Management Committee fails to convey a decision to the Contractor, the Contractor shall have option to submit the proposal to the Government. Also, where, the Management Committee rejects the development plan of the Contractor, the Contractor can submit the development plan for the approval of the Government. The Government shall respond on the proposed development plan submitted by the Contractor within one hundred and ten (110) days. In case Government refuses to approve the proposed development plan, it shall convey the reasons for such refusal and the Contractor shall be given opportunity to make appropriate modifications to meet concerns of Government and the provisions of the foregoing Article and re-submit the plan within ninety (90) days from the date of receipt of refusal from the Government.
10.9 A Development Plan approved by the Management Committee or Government, as may be the case, from time to time shall commit the Contractor to the obligations stipulated in Articles 10.10 to 10.12.twelve
Appears in 2 contracts
Samples: Model Production Sharing Contract, Model Production Sharing Contract
DISCOVERY, DEVELOPMENT AND PRODUCTION. 10.1 If and when a Discovery is made within the Contract Area, the Contractor shall:
(a) forthwith inform shall notify the Management Committee and Government of the Discovery;
sameas per the prescribed formatwithin seven (b) promptly thereafter, but in no event later than a period of thirty (307) days from the date establishment of the Discovery, furnish to the Management Committee and Government particulars, in writing, of the Discovery; and
(c) . The Contractor shall promptly run tests after completion of drilling, as it may determine to be required under Modern Oil Field and Petroleum Industry Practices in respect of such Discovery, to determine whether the Discovery is of potential commercial interest and, and submit the informationin relation to the particulars of such Discoveryin writing as per the prescribed format within a period of sixty (60one hundred and eighty(180) days after completion fromthe initial notification of such tests, submit a report the Discovery to the Management Committee containing Committee. The Contractor’s information about the Discovery submitted under this Article 10.1 shall also specify whether such a Discovery falls under HPHT or Tight Reservoir conditions,which inter- aliashall contain data obtained from such tests and tests, its analysis and interpretation thereof, together with a written notification of whether, in the Contractor’s opinion, such Discovery is of potential commercial interest thereof and also specify if it merits appraisal. For development of CBM, Article 10.9 shall apply.
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)above, the Contractor notifies informs the Management Committee that the Discovery is of potential commercial interestmerits appraisal either individually or jointly with another existing Discovery, it maysubmit an Appraisal Programme including demarcating the Contractor shall prepare and submit Discovery Area to the Management Committee within one hundred no later than (i) six(6) months from the date of submission of information under Article 10.1 for onland, shallow water and twenty deepwater blocks and (120ii) days twelve (12) months from the date of such notification, a proposed submission of information under Article 10.1 for Ultra Deepwater Blocks and Blocks falling inFrontier Areas. The Appraisal Programme will also specify whether such Discovery would require to be jointly appraised with a Work another existing Discovery (ies) that may be:(a) with in the same Contract Area,(b) falling in another Block held by the same Contractor, or (c) falling in an area which has been relinquished by the same Contractor but subsequently not given to another Contractor. Such Appraisal Programme and Budget shall be designed to carry out achieve, an adequate and effective appraisal 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) determineto, with reasonable precision, demarcate the boundaries of the area to be delineated as the Development Area.
10.4 The proposed Appraisal Programme shall be reviewed by 10.3 If a Discovery islocated in an area over which the Management Committee within thirty (30) days after submission thereof pursuant to Article 10.3. The said Appraisal Programme, together Government has vested a third party with the Work Programme right to conduct Petroleum Operations and Budget submitted by the Contractor, which may if it could 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 The Contractor shall in respect of efficiently developed with a Discovery made in the Contract Area, the Government may, for securing the more effective recovery of Crude Oil advise the Management Committee Petroleum, by notice in writing within a period of eighteen (18) months for onland and shallow water blocks and thirty (30) months for deepwater blocks from the date on which the notice provided for in Article 10.1 (c) was delivered, whether such Discovery should be declared a Commercial Discovery or not. Such notice shall be accompanied by a report on the Discovery setting forth all relevant technical and economic data including estimated recoverable reserves, sustainable production levels, estimated development and production expenditures, prevailing and forecasted prices, and other pertinent technical and economic factors according to modern oilfield and petroleum industry practices as well as all evaluations, interpretations and analyses of such data and feasibility studies relating to the Discovery prepared by or for the Contractor, with respect to the Discovery and any other relevant information. If the Contractor is of the opinion that Crude Oil has been discovered in commercial quantities, it shall submit the proposal to the Management Committee for review that the Discovery be declared a Commercial Discovery. In the case of a Discovery of Gas, the provisions of Article 21 shall apply.
10.6 The Management Committee shall, within forty (40) days of the date of the notice referred to in Article 10.5, review the proposal of the Contractor and request any the other additional information it may reasonably third party require so as to complete the review of the proposal made by the Contractor. The Contractor shall furnish the additional information within thirty (30) days from the date of the request. The review by the Management Committee shall be made and conveyed to that the Contractor within the later of (a) ninety (90) days from the date of notice referred to in Article 10.5 or (b) forty (40) days of receipt and such third parties collaborate and agree on joint development of such other information as may be required under this Article.
10.7 If the Contractor declares the Discovery a Commercial Discovery after taking into account the advice of the Management Committee as referred in the Article 10.6Discoveries, within two hundred (200) days of the declaration of the Discovery as a Commercial Discovery, the Contractor shall submit to the Management Committee a comprehensive development plan of the Commercial Discovery which shall:
(a) relate to the Discovery Area and contain a Reservoir or part thereof and the boundaries of the proposed Development Area;
(b) be designed to ensure the most efficient, beneficial and timely use of the Petroleum resources discovered; and
(c) be prepared in accordance with sound engineering, economic, safety Article 19 and environmental principles recognised in the generally accepted modern oilfield Modern Oil Field and petroleum industry practices. Such plan shall contain detailed proposals by the Contractor for the construction, establishment and operation of all facilities and services for and incidental to the recovery, storage and transportation of the Petroleum from the proposed Development Area to the Delivery Point together with all data and supporting information including but not limited to:
(i) description of the nature and characteristic of the Reservoir, data, statistics, interpretations and conclusions on all aspects of the geology, Reservoir evaluation, Petroleum engineering factors, Reservoir models, estimates of reserve in place, possible production magnitude, nature and ratio of Petroleum fluids and analysis of producible Petroleum;
(ii) outlines of the development project and/or alternative development projects, if any, describing the production facilities to be installed and the number of Wxxxx to be drilled under such development project and/or alternative development projects, if any;
(iii) estimate of the rate of production to be established and projection of the possible sustained rate of production in accordance with modern oilfield and petroleum industry practices under such development project and/or alternative development projects, if any, which will ensure that the area does not suffer an excessive rate of decline of production or an excessive loss of Reservoir pressure;
(iv) estimates of Development Costs and Production Costs under such development project and/or alternative development projects, if any;
(v) Contractor’s recommendations as to the particular project that it would prefer;
(vi) Work Programme and Budget for development proposals relating to the proposed Development Area;
(vii) anticipated adverse impact on the environment and measures to be taken for prevention or minimisation thereof and for general protection of the environment in conduct of operations;
(viii) measures to be taken for the health and safety of persons employed in Petroleum Operations;
(ix) the information required in Article 21Industry Practices.
10.8 A proposed development plan submitted by the Contractor pursuant to Article 10.7 may be approved by the Management Committee within one hundred and ten (110) days of submission thereof or eighty (80) days of receipt of any additional information requested by the Management Committee. In case the Management Committee requires any reasonable additional information, the same shall be requested by it within eighty (80) days from the submission of the development plan. The Contractor shall provide such additional information within thirty (30) days from the request by the Management Committee. If, within a period of one hundred and ten (110) days after submission of a proposed development plan or eighty (80) days from the receipt of any additional information, where asked by the Management Committee, the Management Committee fails to convey a decision to the Contractor, the Contractor shall have option to submit the proposal to the Government. Also, where, the Management Committee rejects the development plan of the Contractor, the Contractor can submit the development plan for the approval of the Government. The Government shall respond on the proposed development plan submitted by the Contractor within one hundred and ten (110) days. In case Government refuses to approve the proposed development plan, it shall convey the reasons for such refusal and the Contractor shall be given opportunity to make appropriate modifications to meet concerns of Government and the provisions of the foregoing Article and re-submit the plan within ninety (90) days from the date of receipt of refusal from the Government.
10.9 A Development Plan approved by the Management Committee or Government, as may be the case, from time to time shall commit the Contractor to the obligations stipulated in Articles 10.10 to 10.12.
Appears in 2 contracts
DISCOVERY, DEVELOPMENT AND PRODUCTION. 10.1 If and when a Discovery is made within the Contract Area, the Contractor shall:
shall notify the Government as per the format prescribed within seven (a) forthwith inform the Management Committee and Government of the Discovery;
(b) promptly thereafter, but in no event later than a period of thirty (307) days from the date 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 (GIPIP) in respect of such 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 Potential Commercial Interest (60PCI) 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 . After running 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 interestappropriate tests, the Contractor shall prepare and submit the information in relation to the Management Committee such Discovery as per format prescribed within one hundred and twenty (120) days of such notification, a proposed Appraisal Programme with a Work Programme and Budget from the initial NOD to carry out an adequate and effective appraisal of such Discovery designed the Government. Such information relating 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 Potential Commercial Interest is a Commercial Discovery and (ii) determine, with reasonable precision, the boundaries of the area hereinafter referred to be delineated as the Development Area“PCI Notice”.
10.4 The proposed Appraisal Programme shall be reviewed by the Management Committee within thirty (30) days after submission thereof 10.2 If, pursuant to Article 10.310.1 above, the Contractor informs the Government that the Discovery merits appraisal, the Contractor may submit an Appraisal Programme no later than six (6) months from the date of submission of PCI Notice for Onland/Shallow Water Blocks and twelve (12) Months for Deep Water / Ultra Deep Water Blocks. The said On the basis of Appraisal Programme, together with the Work Programme Discovery Area shall be determined by Contractor and Budget submitted by the Contractor, which may such Discovery Area shall be revised or modified or amended retained by the Contractor in light and informed to the Government.
10.3 After the completion of the Management Committee reviewAppraisal Programme, the Contractor shall be adopted as prepare and submit a Field Development Plan earmarking the Appraisal Programme Development Area for grant of Petroleum Mining Lease (PML) by Government. The Government will convey the approval of Development Area for grant of PML, 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 The Contractor shall in respect of a Discovery of Crude Oil advise the Management Committee by notice in writing within a period of eighteen (18) months for onland and shallow water blocks and thirty (30) months for deepwater blocks from the date on which the notice provided for in Article 10.1 (c) was delivered, whether such Discovery should be declared a Commercial Discovery or not. Such notice shall be accompanied by a report on the Discovery setting forth all relevant technical and economic data including estimated recoverable reserves, sustainable production levels, estimated development and production expenditures, prevailing and forecasted prices, and other pertinent technical and economic factors according to modern oilfield and petroleum industry practices as well as all evaluations, interpretations and analyses of such data and feasibility studies relating to the Discovery prepared by or for the Contractor, with respect to the Discovery and any other relevant information. If the Contractor is of the opinion that Crude Oil has been discovered in commercial quantities, it shall submit the proposal application to the Management Committee authority concerned, for review that the Discovery be declared a Commercial Discovery. In the case grant of a Discovery of Gas, the provisions of Article 21 shall apply.
10.6 The Management Committee shall, within forty (40) days of the date of the notice referred to in Article 10.5, review the proposal of the Contractor and request any other additional information it may reasonably require so as to complete the review of the proposal made by the Contractor. The Contractor shall furnish the additional information PML within thirty (30) days from the date approval of the request. The review by the Management Committee shall be made and conveyed to the Contractor within the later of (a) ninety (90) days from the date of notice referred to in Article 10.5 or (b) forty (40) days of receipt of such other information as may be required under this Article.
10.7 If the Contractor declares the Discovery a Commercial Discovery after taking into account the advice of the Management Committee as referred in the Article 10.6, within two hundred (200) days of the declaration of the Discovery as a Commercial Discovery, the Contractor shall submit to the Management Committee a comprehensive development plan of the Commercial Discovery which shall:
(a) relate to the Discovery Area and contain a Reservoir or part thereof and the boundaries of the proposed Development Area;
(b) be designed to ensure the most efficient, beneficial and timely use of the Petroleum resources discovered; and
(c) be prepared in accordance with sound engineering, economic, safety and environmental principles recognised in the generally accepted modern oilfield and petroleum industry practices. Such plan shall contain detailed proposals by the Contractor for the construction, establishment and operation of all facilities and services for and incidental to the recovery, storage and transportation of the Petroleum from the proposed Development Area to the Delivery Point together with all data and supporting information including but not limited to:
(i) description of the nature and characteristic of the Reservoir, data, statistics, interpretations and conclusions on all aspects of the geology, Reservoir evaluation, Petroleum engineering factors, Reservoir models, estimates of reserve in place, possible production magnitude, nature and ratio of Petroleum fluids and analysis of producible Petroleum;
(ii) outlines of the development project and/or alternative development projects, if any, describing the production facilities to be installed and the number of Wxxxx to be drilled under such development project and/or alternative development projects, if any;
(iii) estimate of the rate of production to be established and projection of the possible sustained rate of production in accordance with modern oilfield and petroleum industry practices under such development project and/or alternative development projects, if any, which will ensure that the area does not suffer an excessive rate of decline of production or an excessive loss of Reservoir pressure;
(iv) estimates of Development Costs and Production Costs under such development project and/or alternative development projects, if any;
(v) Contractor’s recommendations as to the particular project that it would prefer;
(vi) Work Programme and Budget for development proposals relating to the proposed Development Area;
(vii) anticipated adverse impact on the environment and measures to be taken for prevention or minimisation thereof and for general protection of the environment in conduct of operations;
(viii) measures to be taken for the health and safety of persons employed in Petroleum Operations;
(ix) the information required in Article 21.
10.8 A proposed development plan submitted by the Contractor pursuant to Article 10.7 may be approved by the Management Committee within one hundred and ten (110) days of submission thereof or eighty (80) days of receipt of any additional information requested by the Management Committee. In case the Management Committee requires any reasonable additional information, the same shall be requested by it within eighty (80) days from the submission of the development plan. The Contractor shall provide such additional information within thirty (30) days from the request by the Management Committee. If, within a period of one hundred and ten (110) days after submission of a proposed development plan or eighty (80) days from the receipt of any additional information, where asked by the Management Committee, the Management Committee fails to convey a decision to the Contractor, the Contractor shall have option to submit the proposal to the Government. Also, where, the Management Committee rejects the development plan Development Area shall be retained by Contractor and rest of the Contractor, the Contractor can submit the development plan for the approval of the Government. The Government area shall respond on the proposed development plan submitted by the Contractor within one hundred and ten (110) days. In case Government refuses stand relinquished subject to approve the proposed development plan, it shall convey the reasons for such refusal and the Contractor shall be given opportunity to make appropriate modifications to meet concerns of Government and the provisions of the foregoing Article and re-submit the plan within ninety (90) days from the date of receipt of refusal from the Government3.
10.9 A Development Plan approved by the Management Committee or Government, as may be the case, from time to time shall commit the Contractor to the obligations stipulated in Articles 10.10 to 10.12.
Appears in 2 contracts
Samples: Model Revenue Sharing Contract (Mrsc), Model Revenue Sharing Contract (Mrsc)
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 promptly and in any case within 90 days from the date under Article 10.1
(a) 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 The Contractor shall in respect of a Discovery of Crude Oil advise the Management Committee by notice in writing within a period of eighteen Eighteen (18) months for onland and shallow water blocks and thirty (30) months for deepwater blocks from the date on which the notice provided for in Article 10.1 (c) was delivered, whether such Discovery should be declared a Commercial Discovery or not. Such notice shall be accompanied by a report on the Discovery setting forth all relevant technical and economic data including estimated recoverable reserves, sustainable production levels, estimated development and production expenditures, prevailing and forecasted prices, and other pertinent technical and economic factors according to modern oilfield and petroleum industry practices as well as all evaluations, interpretations and analyses of such data and feasibility studies relating to the Discovery prepared by or for the Contractor, with respect to the Discovery and any other relevant information. If the Contractor is of the opinion that Crude Oil has been discovered in commercial quantities, it shall submit the proposal to the Management Committee for review that the Discovery be declared a Commercial Discovery. In the case of a Discovery of Gas, the provisions of Article 21 shall apply.
10.6 The Management Committee shall, within forty (40) days of the date of the notice referred to in Article 10.5, review the proposal of the Contractor and request any other additional information it may reasonably require so as to complete the review of the proposal made by the Contractor. The Contractor shall furnish the additional information within thirty (30) days from the date of the request. The review by the Management Committee shall be made and conveyed to the Contractor within the later of (a) ninety (90) days from the date of notice referred to in Article 10.5 or (b) forty (40) days of receipt of such other information as may be required under this Article.
10.7 If the Contractor declares the Discovery a Commercial Discovery after taking into account the advice of the Management Committee as referred in the Article 10.6, within two hundred (200) days of the declaration of the Discovery as a Commercial Discovery, the Contractor shall submit to the Management Committee a comprehensive development plan of the Commercial Discovery which shall:
(a) relate to the Discovery Area and contain a Reservoir or part thereof and the boundaries of the proposed Development Area;
(b) be designed to ensure the most efficient, beneficial and timely use of the Petroleum resources discovered; and
(c) be prepared in accordance with sound engineering, economic, safety and environmental principles recognised in the generally accepted modern oilfield and petroleum industry practices. Such plan shall contain detailed proposals by the Contractor for the construction, establishment and operation of all facilities and services for and incidental to the recovery, storage and transportation of the Petroleum from the proposed Development Area to the Delivery Point together with all data and supporting information including but not limited to:
(i) description of the nature and characteristic of the Reservoir, data, statistics, interpretations and conclusions on all aspects of the geology, Reservoir evaluation, Petroleum engineering factors, Reservoir models, estimates of reserve in place, possible production magnitude, nature and ratio of Petroleum fluids and analysis of producible Petroleum;
(ii) outlines of the development project and/or alternative development projects, if any, describing the production facilities to be installed and the number of Wxxxx Xxxxx to be drilled under such development project and/or alternative development projects, if any;
(iii) estimate of the rate of production to be established and projection of the possible sustained rate of production in accordance with modern oilfield and petroleum industry practices under such development project and/or alternative development projects, if any, which will ensure that the area does not suffer an excessive rate of decline of production or an excessive loss of Reservoir pressure;
(iv) estimates of Development Costs and Production Costs under such development project and/or alternative development projects, if any;
(v) Contractor’s recommendations as to the particular project that it would prefer;
(vi) Work Programme and Budget for development proposals relating to the proposed Development Area;
(vii) anticipated adverse impact on the environment and measures to be taken for prevention or minimisation thereof and for general protection of the environment in conduct of operations;
(viii) measures to be taken for the health and safety of persons employed in Petroleum Operations;
(ix) the information required in Article 21.
(x) schedule of implementation and targets
10.8 A proposed development plan submitted by the Contractor pursuant to Article 10.7 may be approved by the Management Committee within one hundred and ten (110) days of submission thereof or eighty (80) days of receipt of any additional information requested by the Management Committee. In case the Management Committee requires any reasonable additional information, the same shall be requested by it within eighty (80) days from the submission of the development plan. The Contractor shall provide such additional information within thirty (30) days from the request by the Management Committee. If, within a period of one hundred and ten (110) days after submission of a proposed development plan or eighty (80) days from the receipt of any additional information, where asked by the Management Committee, the Management Committee fails to convey a decision to the Contractor, the Contractor shall have option to submit the proposal to the Government. Also, where, the Management Committee rejects the development plan of the Contractor, the Contractor can submit the development plan for the approval of the Government. The Government shall respond on the proposed development plan submitted by the Contractor within one hundred and ten (110) days. In case Government refuses to approve the proposed development plan, it shall convey the reasons for such refusal and the Contractor shall be given opportunity to make appropriate modifications to meet concerns of Government and the provisions of the foregoing Article and re-submit the plan within ninety (90) days from the date of receipt of refusal from the Government.
10.9 A Development Plan approved by the Management Committee or Government, as may be the case, from time to time shall commit the Contractor to the obligations stipulated in Articles 10.10 to 10.12.
Appears in 2 contracts
Samples: Production Sharing Contract, Production Sharing Contract
DISCOVERY, DEVELOPMENT AND PRODUCTION. 10.1 If and when a Discovery is made within the Contract Area, the Contractor shall:
(a) forthwith inform shall notify the Management Committee and Government of the Discovery;
sameas per the prescribed formatwithin seven (b) promptly thereafter, but in no event later than a period of thirty (307) days from the date establishment of the Discovery, furnish to the Management Committee and Government particulars, in writing, of the Discovery; and
(c) . The Contractor shall promptly run tests after completion of drilling, as it may determine to be required under Modern Oil Field and Petroleum Industry Practices in respect of such Discovery, to determine whether the Discovery is of potential commercial interest and, and submit the informationin relation to the particulars of such Discoveryin writing as per the prescribed format within a period of sixty (60one hundred and eighty(180) days after completion fromthe initial notification of such tests, submit a report the Discovery to the Management Committee containing Committee. The Contractor’s information about the Discovery submitted under this Article 10.1 shall also specify whether such a Discovery falls under HPHT or Tight Reservoir conditions,which inter-aliashall contain data obtained from such tests and tests, its analysis and interpretation thereof, together with a written notification of whether, in the Contractor’s opinion, such Discovery is of potential commercial interest thereof and also specify if it merits appraisal. For development of CBM, Article 10.9 shall apply.
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)above, the Contractor notifies informs the Management Committee that the Discovery is of potential commercial interestmerits appraisal either individually or jointly with another existing Discovery, it maysubmit an Appraisal Programme including demarcating the Contractor shall prepare and submit Discovery Area to the Management Committee within one hundred no later than (i) six(6) months from the date of submission of information under Article 10.1 for onland, shallow water and twenty deepwater blocks and (120ii) days twelve (12) months from the date of such notification, a proposed submission of information under Article 10.1 for Ultra Deepwater Blocks and Blocks falling inFrontier Areas. The Appraisal Programme will also specify whether such Discovery would require to be jointly appraised with a Work another existing Discovery (ies) that may be:(a) with in the same Contract Area,(b) falling in another Block held by the same Contractor, or (c) falling in an area which has been relinquished by the same Contractor but subsequently not given to another Contractor. Such Appraisal Programme and Budget shall be designed to carry out achieve, an adequate and effective appraisal 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) determineto, with reasonable precision, demarcate the boundaries of the area to be delineated as the Development Area.
10.4 The proposed Appraisal Programme shall be reviewed by 10.3 If a Discovery islocated in an area over which the Management Committee within thirty (30) days after submission thereof pursuant to Article 10.3. The said Appraisal Programme, together Government has vested a third party with the Work Programme right to conduct Petroleum Operations and Budget submitted by the Contractor, which may if it could 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 The Contractor shall in respect of efficiently developed with a Discovery made in the Contract Area, the Government may, for securing the more effective recovery of Crude Oil advise the Management Committee Petroleum, by notice in writing within a period of eighteen (18) months for onland and shallow water blocks and thirty (30) months for deepwater blocks from the date on which the notice provided for in Article 10.1 (c) was delivered, whether such Discovery should be declared a Commercial Discovery or not. Such notice shall be accompanied by a report on the Discovery setting forth all relevant technical and economic data including estimated recoverable reserves, sustainable production levels, estimated development and production expenditures, prevailing and forecasted prices, and other pertinent technical and economic factors according to modern oilfield and petroleum industry practices as well as all evaluations, interpretations and analyses of such data and feasibility studies relating to the Discovery prepared by or for the Contractor, with respect to the Discovery and any other relevant information. If the Contractor is of the opinion that Crude Oil has been discovered in commercial quantities, it shall submit the proposal to the Management Committee for review that the Discovery be declared a Commercial Discovery. In the case of a Discovery of Gas, the provisions of Article 21 shall apply.
10.6 The Management Committee shall, within forty (40) days of the date of the notice referred to in Article 10.5, review the proposal of the Contractor and request any the other additional information it may reasonably third party require so as to complete the review of the proposal made by the Contractor. The Contractor shall furnish the additional information within thirty (30) days from the date of the request. The review by the Management Committee shall be made and conveyed to that the Contractor within the later of (a) ninety (90) days from the date of notice referred to in Article 10.5 or (b) forty (40) days of receipt and such third parties collaborate and agree on joint development of such other information as may be required under this Article.
10.7 If the Contractor declares the Discovery a Commercial Discovery after taking into account the advice of the Management Committee as referred in the Article 10.6Discoveries, within two hundred (200) days of the declaration of the Discovery as a Commercial Discovery, the Contractor shall submit to the Management Committee a comprehensive development plan of the Commercial Discovery which shall:
(a) relate to the Discovery Area and contain a Reservoir or part thereof and the boundaries of the proposed Development Area;
(b) be designed to ensure the most efficient, beneficial and timely use of the Petroleum resources discovered; and
(c) be prepared in accordance with sound engineering, economic, safety Article 19 and environmental principles recognised in the generally accepted modern oilfield Modern Oil Field and petroleum industry practices. Such plan shall contain detailed proposals by the Contractor for the construction, establishment and operation of all facilities and services for and incidental to the recovery, storage and transportation of the Petroleum from the proposed Development Area to the Delivery Point together with all data and supporting information including but not limited to:
(i) description of the nature and characteristic of the Reservoir, data, statistics, interpretations and conclusions on all aspects of the geology, Reservoir evaluation, Petroleum engineering factors, Reservoir models, estimates of reserve in place, possible production magnitude, nature and ratio of Petroleum fluids and analysis of producible Petroleum;
(ii) outlines of the development project and/or alternative development projects, if any, describing the production facilities to be installed and the number of Wxxxx to be drilled under such development project and/or alternative development projects, if any;
(iii) estimate of the rate of production to be established and projection of the possible sustained rate of production in accordance with modern oilfield and petroleum industry practices under such development project and/or alternative development projects, if any, which will ensure that the area does not suffer an excessive rate of decline of production or an excessive loss of Reservoir pressure;
(iv) estimates of Development Costs and Production Costs under such development project and/or alternative development projects, if any;
(v) Contractor’s recommendations as to the particular project that it would prefer;
(vi) Work Programme and Budget for development proposals relating to the proposed Development Area;
(vii) anticipated adverse impact on the environment and measures to be taken for prevention or minimisation thereof and for general protection of the environment in conduct of operations;
(viii) measures to be taken for the health and safety of persons employed in Petroleum Operations;
(ix) the information required in Article 21Industry Practices.
10.8 A proposed development plan submitted by the Contractor pursuant to Article 10.7 may be approved by the Management Committee within one hundred and ten (110) days of submission thereof or eighty (80) days of receipt of any additional information requested by the Management Committee. In case the Management Committee requires any reasonable additional information, the same shall be requested by it within eighty (80) days from the submission of the development plan. The Contractor shall provide such additional information within thirty (30) days from the request by the Management Committee. If, within a period of one hundred and ten (110) days after submission of a proposed development plan or eighty (80) days from the receipt of any additional information, where asked by the Management Committee, the Management Committee fails to convey a decision to the Contractor, the Contractor shall have option to submit the proposal to the Government. Also, where, the Management Committee rejects the development plan of the Contractor, the Contractor can submit the development plan for the approval of the Government. The Government shall respond on the proposed development plan submitted by the Contractor within one hundred and ten (110) days. In case Government refuses to approve the proposed development plan, it shall convey the reasons for such refusal and the Contractor shall be given opportunity to make appropriate modifications to meet concerns of Government and the provisions of the foregoing Article and re-submit the plan within ninety (90) days from the date of receipt of refusal from the Government.
10.9 A Development Plan approved by the Management Committee or Government, as may be the case, from time to time shall commit the Contractor to the obligations stipulated in Articles 10.10 to 10.12.
Appears in 2 contracts
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 '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 The Contractor shall in respect of a Discovery of Crude Oil advise the Management Committee by notice in writing within a period of eighteen (18) months for onland and shallow water blocks and thirty (30) months for deepwater blocks from the date on which the notice provided for in Article 10.1 (cArticale 10.1(c) was delivered, whether such Discovery should be declared a Commercial Discovery or not. Such notice shall be accompanied by a report on the Discovery setting forth all relevant technical and economic data including estimated recoverable reserves, sustainable production levels, estimated development and production expenditures, prevailing and forecasted prices, and other pertinent technical and economic factors according to modern oilfield and petroleum industry practices as well as all evaluations, interpretations and analyses of such data and feasibility studies relating to the Discovery prepared by or for the Contractor, with respect to the Discovery and any other relevant information. If the Contractor is of the opinion that Crude Oil has been discovered in commercial quantities, it shall submit the proposal to the Management Committee for review that the Discovery be declared a Commercial Discovery. In the case of a Discovery of Gas, the provisions of Article 21 shall apply.
10.6 The Management Committee shall, within forty (40) days of the date of the notice referred to in Article 10.5, review the proposal of the Contractor and request any other additional information it may reasonably require so as to complete the review of the proposal made by the Contractor. The Contractor shall furnish the additional information within thirty (30) days from the date of the request. The review by the Management Committee shall be made and conveyed to the Contractor within the later of (a) ninety (90) days from the date of notice referred to in Article 10.5 or (b) forty (40) days of receipt of such other information as may be required under this Article.
10.7 If the Contractor declares the Discovery a Commercial Discovery after taking into account the advice of the Management Committee as referred in the Article 10.6, within two hundred (200) days of the declaration of the Discovery as a Commercial Discovery, the Contractor shall submit to the Management Committee a comprehensive development plan of the Commercial Discovery which shall:
(a) relate to the Discovery Area and contain a Reservoir or part thereof and the boundaries of the proposed Development Area;
(b) be designed to ensure the most efficient, beneficial and timely use of the Petroleum resources discovered; and
(c) be prepared in accordance with sound engineering, economic, safety and environmental principles recognised in the generally accepted modern oilfield and petroleum industry practices. Such plan shall contain detailed proposals by the Contractor for the construction, establishment and operation of all facilities and services for and incidental to the recovery, storage and transportation of the Petroleum from the proposed Development Area to the Delivery Point together with all data and supporting information including but not limited to:
(i) description of the nature and characteristic of the Reservoir, data, statistics, interpretations and conclusions on all aspects of the geology, Reservoir evaluation, Petroleum engineering factors, Reservoir models, estimates of reserve in place, possible production magnitude, nature and ratio of Petroleum fluids and analysis of producible Petroleum;
(ii) outlines of the development project and/or alternative development projects, if any, describing the production facilities to be installed and the number of Wxxxx Xxxxx to be drilled under such development project and/or alternative development projects, if any;
(iii) estimate of the rate of production to be established and projection of the possible sustained rate of production in accordance with modern oilfield and petroleum industry practices under such development project and/or alternative development projects, if any, which will ensure that the area does not suffer an excessive rate of decline of production or an excessive loss of Reservoir pressure;
(iv) estimates of Development Costs and Production Costs under such development project and/or alternative development projects, if any;
(v) Contractor’s 's recommendations as to the particular project that it would prefer;
(vi) Work Programme and Budget for development proposals relating to the proposed Development Area;
(vii) anticipated adverse impact on the environment and measures to be taken for prevention or minimisation thereof and for general protection of the environment in conduct of operations;
(viii) measures to be taken for the health and safety of persons employed in Petroleum Operations;
(ix) the information required in Article 21.
10.8 A proposed development plan submitted by the Contractor pursuant to Article 10.7 may be approved by the Management Committee within one hundred and ten (110) days of submission thereof or eighty (80) days of receipt of any additional information requested by the Management Committee. In case the Management Committee requires any reasonable additional information, the same shall be requested by it within eighty (80) days from the submission of the development plan. The Contractor shall provide such additional information within thirty (30) days from the request by the Management Committee. If, within a period of one hundred and ten (110) days after submission of a proposed development plan or eighty (80) days from the receipt of any additional information, where asked by the Management Committee, the Management Committee fails to convey a decision to the Contractor, the Contractor shall have option to submit the proposal to the Government. Also, where, the Management Committee rejects the development plan of the Contractor, the Contractor can submit the development plan for the approval of the Government. The Government shall respond on the proposed development plan submitted by the Contractor within one hundred and ten (110) days. In case Government refuses to approve the proposed development plan, it shall convey the reasons for such refusal and the Contractor shall be given opportunity to make appropriate modifications to meet concerns of Government and the provisions of the foregoing Article and re-submit the plan within ninety (90) days from the date of receipt of refusal from the Government.
10.9 A Development Plan approved by the Management Committee or Government, as may be the case, from time to time shall commit the Contractor to the obligations stipulated in Articles 10.10 to 10.12.
Appears in 2 contracts
Samples: Production Sharing Contract (Geoglobal Resources Inc.), Production Sharing Contract (Geoglobal Resources Inc.)
DISCOVERY, DEVELOPMENT AND PRODUCTION. 10.1 If and when a Discovery is made within the Contract Area, the Contractor shall:
shall notify the Government as per the format prescribed within seven (a) forthwith inform the Management Committee and Government of the Discovery;
(b) promptly thereafter, but in no event later than a period of thirty (307) days from the date 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 (GIPIP) in respect of such 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 Potential Commercial Interest (60PCI) 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 . After running 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 interestappropriate tests, the Contractor shall prepare and submit the information in relation to the Management Committee such Discovery as per format prescribed within one hundred and twenty (120) days of such notificationfrom the initial NOD to the Government. Such information relating to Potential Commercial Interest is hereinafter referred to as ―PCI Notice‖.
10.2 If, 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 10.310.1 above, the Contractor informs the Government that the Discovery merits appraisal, the Contractor may submit an Appraisal Programme no later than six (6) months from the date of submission of PCI Notice for Onland/Shallow Water Blocks and twelve (12) Months for Deep Water / Ultra Deep Water Blocks. The said On the basis of Appraisal Programme, together with the Work Programme Discovery Area shall be determined by Contractor and Budget submitted by the Contractor, which may such Discovery Area shall be revised or modified or amended retained by the Contractor in light and informed to the Government.
10.3 After the completion of the Management Committee reviewAppraisal Programme, the Contractor shall be adopted as prepare and submit a Field Development Plan earmarking the Appraisal Programme Development Area for grant of Petroleum Mining Lease (PML) by Government. The Government will convey the approval of Development Area for grant of PML, 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 The Contractor shall in respect of a Discovery of Crude Oil advise the Management Committee by notice in writing within a period of eighteen (18) months for onland and shallow water blocks and thirty (30) months for deepwater blocks from the date on which the notice provided for in Article 10.1 (c) was delivered, whether such Discovery should be declared a Commercial Discovery or not. Such notice shall be accompanied by a report on the Discovery setting forth all relevant technical and economic data including estimated recoverable reserves, sustainable production levels, estimated development and production expenditures, prevailing and forecasted prices, and other pertinent technical and economic factors according to modern oilfield and petroleum industry practices as well as all evaluations, interpretations and analyses of such data and feasibility studies relating to the Discovery prepared by or for the Contractor, with respect to the Discovery and any other relevant information. If the Contractor is of the opinion that Crude Oil has been discovered in commercial quantities, it shall submit the proposal application to the Management Committee authority concerned, for review that the Discovery be declared a Commercial Discovery. In the case grant of a Discovery of Gas, the provisions of Article 21 shall apply.
10.6 The Management Committee shall, within forty (40) days of the date of the notice referred to in Article 10.5, review the proposal of the Contractor and request any other additional information it may reasonably require so as to complete the review of the proposal made by the Contractor. The Contractor shall furnish the additional information PML within thirty (30) days from the date approval of the request. The review by the Management Committee shall be made and conveyed to the Contractor within the later of (a) ninety (90) days from the date of notice referred to in Article 10.5 or (b) forty (40) days of receipt of such other information as may be required under this Article.
10.7 If the Contractor declares the Discovery a Commercial Discovery after taking into account the advice of the Management Committee as referred in the Article 10.6, within two hundred (200) days of the declaration of the Discovery as a Commercial Discovery, the Contractor shall submit to the Management Committee a comprehensive development plan of the Commercial Discovery which shall:
(a) relate to the Discovery Area and contain a Reservoir or part thereof and the boundaries of the proposed Development Area;
(b) be designed to ensure the most efficient, beneficial and timely use of the Petroleum resources discovered; and
(c) be prepared in accordance with sound engineering, economic, safety and environmental principles recognised in the generally accepted modern oilfield and petroleum industry practices. Such plan shall contain detailed proposals by the Contractor for the construction, establishment and operation of all facilities and services for and incidental to the recovery, storage and transportation of the Petroleum from the proposed Development Area to the Delivery Point together with all data and supporting information including but not limited to:
(i) description of the nature and characteristic of the Reservoir, data, statistics, interpretations and conclusions on all aspects of the geology, Reservoir evaluation, Petroleum engineering factors, Reservoir models, estimates of reserve in place, possible production magnitude, nature and ratio of Petroleum fluids and analysis of producible Petroleum;
(ii) outlines of the development project and/or alternative development projects, if any, describing the production facilities to be installed and the number of Wxxxx to be drilled under such development project and/or alternative development projects, if any;
(iii) estimate of the rate of production to be established and projection of the possible sustained rate of production in accordance with modern oilfield and petroleum industry practices under such development project and/or alternative development projects, if any, which will ensure that the area does not suffer an excessive rate of decline of production or an excessive loss of Reservoir pressure;
(iv) estimates of Development Costs and Production Costs under such development project and/or alternative development projects, if any;
(v) Contractor’s recommendations as to the particular project that it would prefer;
(vi) Work Programme and Budget for development proposals relating to the proposed Development Area;
(vii) anticipated adverse impact on the environment and measures to be taken for prevention or minimisation thereof and for general protection of the environment in conduct of operations;
(viii) measures to be taken for the health and safety of persons employed in Petroleum Operations;
(ix) the information required in Article 21.
10.8 A proposed development plan submitted by the Contractor pursuant to Article 10.7 may be approved by the Management Committee within one hundred and ten (110) days of submission thereof or eighty (80) days of receipt of any additional information requested by the Management Committee. In case the Management Committee requires any reasonable additional information, the same shall be requested by it within eighty (80) days from the submission of the development plan. The Contractor shall provide such additional information within thirty (30) days from the request by the Management Committee. If, within a period of one hundred and ten (110) days after submission of a proposed development plan or eighty (80) days from the receipt of any additional information, where asked by the Management Committee, the Management Committee fails to convey a decision to the Contractor, the Contractor shall have option to submit the proposal to the Government. Also, where, the Management Committee rejects the development plan Development Area shall be retained by Contractor and rest of the Contractor, the Contractor can submit the development plan for the approval of the Government. The Government area shall respond on the proposed development plan submitted by the Contractor within one hundred and ten (110) days. In case Government refuses stand relinquished subject to approve the proposed development plan, it shall convey the reasons for such refusal and the Contractor shall be given opportunity to make appropriate modifications to meet concerns of Government and the provisions of the foregoing Article and re-submit the plan within ninety (90) days from the date of receipt of refusal from the Government3.
10.9 A Development Plan approved by the Management Committee or Government, as may be the case, from time to time shall commit the Contractor to the obligations stipulated in Articles 10.10 to 10.12.
Appears in 2 contracts
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 '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 The Contractor shall in respect of a Discovery of Crude Oil advise the Management Committee by notice in writing within a period of eighteen (18) months for onland and shallow water blocks and thirty (30) months for deepwater blocks from the date on which the notice provided for in Article 10.1 (c) was delivered, whether such Discovery should be declared a Commercial Discovery or not. Such notice shall be accompanied by a report on the Discovery setting forth all relevant technical and economic data including estimated recoverable reserves, sustainable production levels, estimated development and production expenditures, prevailing and forecasted prices, and other pertinent technical and economic factors according to modern oilfield and petroleum industry practices as well as all evaluations, interpretations and analyses of such data and feasibility studies relating to the Discovery prepared by or for the Contractor, with respect to the Discovery and any other relevant information. If the Contractor is of the opinion that Crude Oil has been discovered in commercial quantities, it shall submit the proposal to the Management Committee for review that the Discovery be declared a Commercial Discovery. In the case of a Discovery of Gas, the provisions of Article 21 shall apply.
10.6 The Management Committee shall, within forty (40) days of the date of the notice referred to in Article 10.5, review the proposal of the Contractor and request any other additional information it may reasonably require so as to complete the review of the proposal made by the Contractor. The Contractor shall furnish the additional information within thirty (30) days from the date of the request. The review by the Management Committee shall be made and conveyed to the Contractor within the later of (a) ninety (90) days from the date of notice referred to in Article 10.5 or (b) forty (40) days of receipt of such other information as may be required under this Article.
10.7 If the Contractor declares the Discovery a Commercial Discovery after taking into account the advice of the Management Committee as referred in the Article 10.6, within two hundred (200) days of the declaration of the Discovery as a Commercial Discovery, the Contractor shall submit to the Management Committee a comprehensive development plan of the Commercial Discovery which shall:
(a) relate to the Discovery Area and contain a Reservoir or part thereof and the boundaries of the proposed Development Area;
(b) be designed to ensure the most efficient, beneficial and timely use of the Petroleum resources discovered; and
(c) be prepared in accordance with sound engineering, economic, safety and environmental principles recognised in the generally accepted modern oilfield and petroleum industry practices. Such plan shall contain detailed proposals by the Contractor for the construction, establishment and operation of all facilities and services for and incidental to the recovery, storage and transportation of the Petroleum from the proposed Development Area to the Delivery Point together with all data and supporting information including but not limited to:
(i) description of the nature and characteristic of the Reservoir, data, statistics, interpretations and conclusions on all aspects of the geology, Reservoir evaluation, Petroleum engineering factors, Reservoir models, estimates of reserve in place, possible production magnitude, nature and ratio of Petroleum fluids and analysis of producible Petroleum;
(ii) outlines of the development project and/or alternative development projects, if any, describing the production facilities to be installed and the number of Wxxxx Xxxxx to be drilled under such development project and/or alternative development projects, if any;
(iii) estimate of the rate of production to be established and projection of the possible sustained rate of production in accordance with modern oilfield and petroleum industry practices under such development project and/or alternative development projects, if any, which will ensure that the area does not suffer an excessive rate of decline of production or an excessive loss of Reservoir pressure;
(iv) estimates of Development Costs and Production Costs under such development project and/or alternative development projects, if any;
(v) Contractor’s 's recommendations as to the particular project that it would prefer;
(vi) Work Programme and Budget for development proposals relating to the proposed Development Area;
(vii) anticipated adverse impact on the environment and measures to be taken for prevention or minimisation thereof and for general protection of the environment in conduct of operations;
(viii) measures to be taken for the health and safety of persons employed in Petroleum Operations;
(ix) the information required in Article 21.
10.8 A proposed development plan submitted by the Contractor pursuant to Article 10.7 may be approved by the Management Committee within one hundred and ten (110) days of submission thereof or eighty (80) days of receipt of any additional information requested by the Management Committee. In case the Management Committee requires any reasonable additional information, the same shall be requested by it within eighty (80) days from the submission of the development plan. The Contractor shall provide such additional information within thirty (30) days from the request by the Management Committee. If, within a period of one hundred and ten (110) days after submission of a proposed development plan or eighty (80) days from the receipt of any additional information, where asked by the Management Committee, the Management Committee fails to convey a decision to the Contractor, the Contractor shall have option to submit the proposal to the Government. Also, where, the Management Committee rejects the development plan of the Contractor, the Contractor can submit the development plan for the approval of the Government. The Government shall respond on the proposed development plan submitted by the Contractor within one hundred and ten (110) days. In case Government refuses to approve the proposed development plan, it shall convey the reasons for such refusal and the Contractor shall be given opportunity to make appropriate modifications to meet concerns of Government and the provisions of the foregoing Article and re-submit the plan within ninety (90) days from the date of receipt of refusal from the Government.
10.9 A Development Plan approved by the Management Committee or Government, as may be the case, from time to time shall commit the Contractor to the obligations stipulated in Articles 10.10 to 10.12.
Appears in 2 contracts
Samples: Production Sharing Contract (Geoglobal Resources Inc.), Production Sharing Contract (Geoglobal Resources Inc.)
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 The Contractor shall in respect of a Discovery of Crude Oil advise the Management Committee by notice in writing within a period of eighteen (18) months for onland and shallow water blocks and thirty (30) months for deepwater blocks from the date on which the notice provided for in Article 10.1 (c) was delivered, whether such Discovery should be declared a Commercial Discovery or not. Such notice shall be accompanied by a report on the Discovery setting forth all relevant technical and economic data including estimated recoverable reserves, sustainable production levels, estimated development and production expenditures, prevailing and forecasted prices, and other pertinent technical and economic factors according to modern oilfield and petroleum industry practices as well as all evaluations, interpretations and analyses of such data and feasibility studies relating to the Discovery prepared by or for the Contractor, with respect to the Discovery and any other relevant information. If the Contractor is of the opinion that Crude Oil has been discovered in commercial quantities, it shall submit the proposal to the Management Committee for review that the Discovery be declared a Commercial Discovery. In the case of a Discovery of Gas, the provisions of Article 21 shall apply.
10.6 The Management Committee shall, within forty (40) days of the date of the notice referred to in Article 10.5, review the proposal of the Contractor and request any other additional information it may reasonably require so as to complete the review of the proposal made by the Contractor. The Contractor shall furnish the additional information within thirty (30) days from the date of the request. The review by the Management Committee shall be made and conveyed to the Contractor within the later of (a) ninety (90) days from the date of notice referred to in Article 10.5 or (b) forty (40) days of receipt of such other information as may be required under this Article.
10.7 If the Contractor declares the Discovery a Commercial Discovery after taking into account the advice of the Management Committee as referred in the Article 10.6, within two hundred (200) days of the declaration of the Discovery as a Commercial Discovery, the Contractor shall submit to the Management Committee a comprehensive development plan of the Commercial Discovery which shall:
(a) relate to the Discovery Area and contain a Reservoir or part thereof and the boundaries of the proposed Development Area;
(b) be designed to ensure the most efficient, beneficial and timely use of the Petroleum resources discovered; and
(c) be prepared in accordance with sound engineering, economic, safety and environmental principles recognised in the generally accepted modern oilfield and petroleum industry practices. Such plan shall contain detailed proposals by the Contractor for the construction, establishment and operation of all facilities and services for and incidental to the recovery, storage and transportation of the Petroleum from the proposed Development Area to the Delivery Point together with all data and supporting information including but not limited to:
(i) description of the nature and characteristic of the Reservoir, data, statistics, interpretations and conclusions on all aspects of the geology, Reservoir evaluation, Petroleum engineering factors, Reservoir models, estimates of reserve in place, possible production magnitude, nature and ratio of Petroleum fluids and analysis of producible Petroleum;
(ii) outlines of the development project and/or alternative development projects, if any, describing the production facilities to be installed and the number of Wxxxx to be drilled under such development project and/or alternative development projects, if any;
(iii) estimate of the rate of production to be established and projection of the possible sustained rate of production in accordance with modern oilfield and petroleum industry practices under such development project and/or alternative development projects, if any, which will ensure that the area does not suffer an excessive rate of decline of production or an excessive loss of Reservoir pressure;
(iv) estimates of Development Costs and Production Costs under such development project and/or alternative development projects, if any;
(v) Contractor’s recommendations as to the particular project that it would prefer;
(vi) Work Programme and Budget for development proposals relating to the proposed Development Area;
(vii) anticipated adverse impact on the environment and measures to be taken for prevention or minimisation thereof and for general protection of the environment in conduct of operations;
(viii) measures to be taken for the health and safety of persons employed in Petroleum Operations;
(ix) the information required in Article 21.
10.8 A proposed development plan submitted by the Contractor pursuant to Article 10.7 may be approved by the Management Committee within one hundred and ten (110) days of submission thereof or eighty (80) days of receipt of any additional information requested by the Management Committee. In case the Management Committee requires any reasonable additional information, the same shall be requested by it within eighty (80) days from the submission of the development plan. The Contractor shall provide such additional information within thirty (30) days from the request by the Management Committee. If, within a period of one hundred and ten (110) days after submission of a proposed development plan or eighty (80) days from the receipt of any additional information, where asked by the Management Committee, the Management Committee fails to convey a decision to the Contractor, the Contractor shall have option to submit the proposal to the Government. Also, where, the Management Committee rejects the development plan of the Contractor, the Contractor can submit the development plan for the approval of the Government. The Government shall respond on the proposed development plan submitted by the Contractor within one hundred and ten (110) days. In case Government refuses to approve the proposed development plan, it shall convey the reasons for such refusal and the Contractor shall be given opportunity to make appropriate modifications to meet concerns of Government and the provisions of the foregoing Article and re-submit the plan within ninety (90) days from the date of receipt of refusal from the Government.
10.9 A Development Plan approved by the Management Committee or Government, as may be the case, from time to time shall commit the Contractor to the obligations stipulated in Articles 10.10 to 10.12.thirty
Appears in 1 contract
Samples: Production Sharing Agreement
DISCOVERY, DEVELOPMENT AND PRODUCTION. 10.1 If and when a Discovery is made within the Contract Area, the Contractor shall:
shall notify the Government as per the format prescribed within seven (a) forthwith inform the Management Committee and Government of the Discovery;
(b) promptly thereafter, but in no event later than a period of thirty (307) days from the date 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 (GIPIP) in respect of such 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 Potential Commercial Interest (60PCI) 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 . After running 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 interestappropriate tests, the Contractor shall prepare and submit the information in relation to the Management Committee such Discovery as per format prescribed within one hundred and twenty (120) days of such notification, a proposed Appraisal Programme with a Work Programme and Budget from the initial NOD to carry out an adequate and effective appraisal of such Discovery designed the Government. Such information relating 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 Potential Commercial Interest is a Commercial Discovery and (ii) determine, with reasonable precision, the boundaries of the area hereinafter referred to be delineated as the Development Area“PCI Notice”.
10.4 The proposed Appraisal Programme shall be reviewed by the Management Committee within thirty (30) days after submission thereof 10.2 If, pursuant to Article 10.310.1 above, the Contractor informs the Government that the Discovery merits appraisal, the Contractor may submit an Appraisal Programme no later than six (6) months from the date of submission of PCI Notice for Onland/Shallow Water Blocks and twelve (12) Months for Deep Water / Ultra Deep Water Blocks. The said On the basis of Appraisal Programme, together with the Work Programme Discovery Area shall be determined by Contractor and Budget submitted by the Contractor, which may such Discovery Area shall be revised or modified or amended retained by the Contractor in light and informed to the Government.
10.2.1 In the event of a Discovery, if according to the Contractor the commercial viability of the Management Committee review, shall Discovery cannot be adopted as established upon completion of the Appraisal Programme Programme, the Contractor may, upon payment of the relevant Retention Fees and prior Government approval, retain the rights to said Discovery for a maximum period of 3 years (“hereinafter called as “Retention Period”) to assess its commercial viability taking in to account the factors including, but not limited to, market linkage, development of infrastructure/technology for sub-commercial discoveries. Application for availing Retention Period to be submitted 60 days prior to the applicable FDP submission date. The Contractor shall pay yearly in advance by way of retention fee to the Government in respect of retention period at the following rates (“Retention Fees”):
a. USD 100,000 for the first year or any part thereof.
b. USD 150,000 for the second year or any part thereof
c. USD 200,000 for the third year or any part thereof.
10.3 After the completion of the Appraisal Programme, the Contractor shall prepare and submit a Field Development Plan earmarking the Development Area for grant of Petroleum Mining Lease (PML) by Government. The Government will convey the approval of Development Area for grant of PML, 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 The Contractor shall in respect of a Discovery of Crude Oil advise the Management Committee by notice in writing within a period of eighteen (18) months for onland and shallow water blocks and thirty (30) months for deepwater blocks from the date on which the notice provided for in Article 10.1 (c) was delivered, whether such Discovery should be declared a Commercial Discovery or not. Such notice shall be accompanied by a report on the Discovery setting forth all relevant technical and economic data including estimated recoverable reserves, sustainable production levels, estimated development and production expenditures, prevailing and forecasted prices, and other pertinent technical and economic factors according to modern oilfield and petroleum industry practices as well as all evaluations, interpretations and analyses of such data and feasibility studies relating to the Discovery prepared by or for the Contractor, with respect to the Discovery and any other relevant information. If the Contractor is of the opinion that Crude Oil has been discovered in commercial quantities, it shall submit the proposal application to the Management Committee authority concerned, for review that the Discovery be declared a Commercial Discovery. In the case grant of a Discovery of Gas, the provisions of Article 21 shall apply.
10.6 The Management Committee shall, within forty (40) days of the date of the notice referred to in Article 10.5, review the proposal of the Contractor and request any other additional information it may reasonably require so as to complete the review of the proposal made by the Contractor. The Contractor shall furnish the additional information PML within thirty (30) days from the date approval of the request. The review by the Management Committee shall be made and conveyed to the Contractor within the later of (a) ninety (90) days from the date of notice referred to in Article 10.5 or (b) forty (40) days of receipt of such other information as may be required under this Article.
10.7 If the Contractor declares the Discovery a Commercial Discovery after taking into account the advice of the Management Committee as referred in the Article 10.6, within two hundred (200) days of the declaration of the Discovery as a Commercial Discovery, the Contractor shall submit to the Management Committee a comprehensive development plan of the Commercial Discovery which shall:
(a) relate to the Discovery Area and contain a Reservoir or part thereof and the boundaries of the proposed Development Area;
(b) be designed to ensure the most efficient, beneficial and timely use of the Petroleum resources discovered; and
(c) be prepared in accordance with sound engineering, economic, safety and environmental principles recognised in the generally accepted modern oilfield and petroleum industry practices. Such plan shall contain detailed proposals by the Contractor for the construction, establishment and operation of all facilities and services for and incidental to the recovery, storage and transportation of the Petroleum from the proposed Development Area to the Delivery Point together with all data and supporting information including but not limited to:
(i) description of the nature and characteristic of the Reservoir, data, statistics, interpretations and conclusions on all aspects of the geology, Reservoir evaluation, Petroleum engineering factors, Reservoir models, estimates of reserve in place, possible production magnitude, nature and ratio of Petroleum fluids and analysis of producible Petroleum;
(ii) outlines of the development project and/or alternative development projects, if any, describing the production facilities to be installed and the number of Wxxxx to be drilled under such development project and/or alternative development projects, if any;
(iii) estimate of the rate of production to be established and projection of the possible sustained rate of production in accordance with modern oilfield and petroleum industry practices under such development project and/or alternative development projects, if any, which will ensure that the area does not suffer an excessive rate of decline of production or an excessive loss of Reservoir pressure;
(iv) estimates of Development Costs and Production Costs under such development project and/or alternative development projects, if any;
(v) Contractor’s recommendations as to the particular project that it would prefer;
(vi) Work Programme and Budget for development proposals relating to the proposed Development Area;
(vii) anticipated adverse impact on the environment and measures to be taken for prevention or minimisation thereof and for general protection of the environment in conduct of operations;
(viii) measures to be taken for the health and safety of persons employed in Petroleum Operations;
(ix) the information required in Article 21.
10.8 A proposed development plan submitted by the Contractor pursuant to Article 10.7 may be approved by the Management Committee within one hundred and ten (110) days of submission thereof or eighty (80) days of receipt of any additional information requested by the Management Committee. In case the Management Committee requires any reasonable additional information, the same shall be requested by it within eighty (80) days from the submission of the development plan. The Contractor shall provide such additional information within thirty (30) days from the request by the Management Committee. If, within a period of one hundred and ten (110) days after submission of a proposed development plan or eighty (80) days from the receipt of any additional information, where asked by the Management Committee, the Management Committee fails to convey a decision to the Contractor, the Contractor shall have option to submit the proposal to the Government. Also, where, the Management Committee rejects the development plan Development Area shall be retained by Contractor and rest of the Contractor, the Contractor can submit the development plan for the approval of the Government. The Government area shall respond on the proposed development plan submitted by the Contractor within one hundred and ten (110) days. In case Government refuses stand relinquished subject to approve the proposed development plan, it shall convey the reasons for such refusal and the Contractor shall be given opportunity to make appropriate modifications to meet concerns of Government and the provisions of the foregoing Article and re-submit the plan within ninety (90) days from the date of receipt of refusal from the Government3.
10.9 A Development Plan approved by the Management Committee or Government, as may be the case, from time to time shall commit the Contractor to the obligations stipulated in Articles 10.10 to 10.12.
Appears in 1 contract
Samples: Revenue Sharing Contract
DISCOVERY, DEVELOPMENT AND PRODUCTION. 10.1 If and when a Discovery is made within the Contract Area, the Contractor shall:
shall notify the Government as per the format prescribed within seven (a) forthwith inform the Management Committee and Government of the Discovery;
(b) promptly thereafter, but in no event later than a period of thirty (307) days from the date 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 (GIPIP) in respect of such 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 Potential Commercial Interest (60PCI) 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 . After running 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 interestappropriate tests, the Contractor shall prepare and submit the information in relation to the Management Committee such Discovery as per format prescribed within one hundred and twenty (120) days of such notification, a proposed Appraisal Programme with a Work Programme and Budget from the initial NOD to carry out an adequate and effective appraisal of such Discovery designed the Government. Such information relating 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 Potential Commercial Interest is a Commercial Discovery and (ii) determine, with reasonable precision, the boundaries of the area hereinafter referred to be delineated as the Development Area“PCI Notice”.
10.4 The proposed Appraisal Programme shall be reviewed by the Management Committee within thirty (30) days after submission thereof 10.2 If, pursuant to Article 10.3. The said 10.1 above, the Contractor informs the Government that the Discovery merits appraisal, the Contractor may submit an Appraisal Programme no later than six (6) months from the date of submission of PCI Notice.On the basis of Appraisal Programme, together with the Work Programme Discovery Area shall be determined by Contractor and Budget submitted by the Contractor, which may such Discovery Area shall be revised or modified or amended retained by the Contractor in light and informed to the Government.
10.3 After the completion of the Management Committee reviewAppraisal Programme, the Contractor shall be adopted as prepare and submit a Field Development Plan earmarking the Appraisal Programme Development Area for grant of Petroleum Mining Lease (PML) by Government. The Government will convey the approval of Development Area for grant of PML, 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 The Contractor shall in respect of a Discovery of Crude Oil advise the Management Committee by notice in writing within a period of eighteen (18) months for onland and shallow water blocks and thirty (30) months for deepwater blocks from the date on which the notice provided for in Article 10.1 (c) was delivered, whether such Discovery should be declared a Commercial Discovery or not. Such notice shall be accompanied by a report on the Discovery setting forth all relevant technical and economic data including estimated recoverable reserves, sustainable production levels, estimated development and production expenditures, prevailing and forecasted prices, and other pertinent technical and economic factors according to modern oilfield and petroleum industry practices as well as all evaluations, interpretations and analyses of such data and feasibility studies relating to the Discovery prepared by or for the Contractor, with respect to the Discovery and any other relevant information. If the Contractor is of the opinion that Crude Oil has been discovered in commercial quantities, it shall submit the proposal application to the Management Committee authority concerned, for review that the Discovery be declared a Commercial Discovery. In the case grant of a Discovery of Gas, the provisions of Article 21 shall apply.
10.6 The Management Committee shall, within forty (40) days of the date of the notice referred to in Article 10.5, review the proposal of the Contractor and request any other additional information it may reasonably require so as to complete the review of the proposal made by the Contractor. The Contractor shall furnish the additional information PML within thirty (30) days from the date approval of the request. The review by the Management Committee shall be made and conveyed to the Contractor within the later of (a) ninety (90) days from the date of notice referred to in Article 10.5 or (b) forty (40) days of receipt of such other information as may be required under this Article.
10.7 If the Contractor declares the Discovery a Commercial Discovery after taking into account the advice of the Management Committee as referred in the Article 10.6, within two hundred (200) days of the declaration of the Discovery as a Commercial Discovery, the Contractor shall submit to the Management Committee a comprehensive development plan of the Commercial Discovery which shall:
(a) relate to the Discovery Area and contain a Reservoir or part thereof and the boundaries of the proposed Development Area;
(b) be designed to ensure the most efficient, beneficial and timely use of the Petroleum resources discovered; and
(c) be prepared in accordance with sound engineering, economic, safety and environmental principles recognised in the generally accepted modern oilfield and petroleum industry practices. Such plan shall contain detailed proposals by the Contractor for the construction, establishment and operation of all facilities and services for and incidental to the recovery, storage and transportation of the Petroleum from the proposed Development Area to the Delivery Point together with all data and supporting information including but not limited to:
(i) description of the nature and characteristic of the Reservoir, data, statistics, interpretations and conclusions on all aspects of the geology, Reservoir evaluation, Petroleum engineering factors, Reservoir models, estimates of reserve in place, possible production magnitude, nature and ratio of Petroleum fluids and analysis of producible Petroleum;
(ii) outlines of the development project and/or alternative development projects, if any, describing the production facilities to be installed and the number of Wxxxx to be drilled under such development project and/or alternative development projects, if any;
(iii) estimate of the rate of production to be established and projection of the possible sustained rate of production in accordance with modern oilfield and petroleum industry practices under such development project and/or alternative development projects, if any, which will ensure that the area does not suffer an excessive rate of decline of production or an excessive loss of Reservoir pressure;
(iv) estimates of Development Costs and Production Costs under such development project and/or alternative development projects, if any;
(v) Contractor’s recommendations as to the particular project that it would prefer;
(vi) Work Programme and Budget for development proposals relating to the proposed Development Area;
(vii) anticipated adverse impact on the environment and measures to be taken for prevention or minimisation thereof and for general protection of the environment in conduct of operations;
(viii) measures to be taken for the health and safety of persons employed in Petroleum Operations;
(ix) the information required in Article 21.
10.8 A proposed development plan submitted by the Contractor pursuant to Article 10.7 may be approved by the Management Committee within one hundred and ten (110) days of submission thereof or eighty (80) days of receipt of any additional information requested by the Management Committee. In case the Management Committee requires any reasonable additional information, the same shall be requested by it within eighty (80) days from the submission of the development plan. The Contractor shall provide such additional information within thirty (30) days from the request by the Management Committee. If, within a period of one hundred and ten (110) days after submission of a proposed development plan or eighty (80) days from the receipt of any additional information, where asked by the Management Committee, the Management Committee fails to convey a decision to the Contractor, the Contractor shall have option to submit the proposal to the Government. Also, where, the Management Committee rejects the development plan Development Area shall be retained by Contractor and rest of the Contractor, the Contractor can submit the development plan for the approval of the Government. The Government area shall respond on the proposed development plan submitted by the Contractor within one hundred and ten (110) days. In case Government refuses stand relinquished subject to approve the proposed development plan, it shall convey the reasons for such refusal and the Contractor shall be given opportunity to make appropriate modifications to meet concerns of Government and the provisions of the foregoing Article and re-submit the plan within ninety (90) days from the date of receipt of refusal from the Government3.
10.9 A Development Plan approved by the Management Committee or Government, as may be the case, from time to time shall commit the Contractor to the obligations stipulated in Articles 10.10 to 10.12.
Appears in 1 contract
DISCOVERY, DEVELOPMENT AND PRODUCTION. 10.1 8.1 If and when a Discovery is made within the Contract Area, the Contractor shall:
shall notify the Government as per the format prescribed by the Government within seven (a) forthwith inform the Management Committee and Government of the Discovery;
(b) promptly thereafter, but in no event later than a period of thirty (307) days from the date 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 (GIPIP) in respect of such 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 Potential Commercial Interest (60PCI) 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 shall submit the Contractor determines information relating to conduct a drill stem or production test, in open hole or through perforated casing, with regard Potential commercial Interest (hereinafter referred as “PCI Notice”) for such Discovery 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 from the following objectives: (i) determine without delay, and, NOD 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 format prescribed by the Management Committee within thirty (30) days after submission thereof pursuant Government from time to Article 10.3time. The said Appraisal Programme, together Contractor has the option to submit an expression of its intent to submit individual Discovery Development Plan or Integrated Field Development Plan along with the Work Programme PCI Notice and Budget submitted by submit 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 The Contractor shall in respect of a Discovery of Crude Oil advise the Management Committee by notice in writing Field Development Plan (FDP) within a period of eighteen (18) Months thereof.
8.2 If, pursuant to Article 8.1 above, the Contractor informs the Government that the Discovery merits appraisal, the Contractor shall submit an Appraisal Programme no later than six (6) months from the date of submission of PCI Notice for onland Onland/Shallow Water Blocks and shallow water blocks twelve (12) Months for Deep Water / Ultra Deep Water Blocks. On the basis of Appraisal Programme, a Field Development Plan earmarking the Development Area shall be prepared by Contractor and submitted to the Government, within thirty six (3036) months of PCI Notice for Onland Blocks and forty eight (48) months for deepwater blocks Offshore Blocks.
(a) For Contract Area situated in North Eastern Region, the Government upon receipt of a request from the date on which the notice provided for in Article 10.1 (c) was delivered, whether such Discovery should be declared a Commercial Discovery or not. Such notice shall be accompanied by a report on the Discovery setting forth all relevant technical and economic data including estimated recoverable reserves, sustainable production levels, estimated development and production expenditures, prevailing and forecasted prices, and other pertinent technical and economic factors according to modern oilfield and petroleum industry practices as well as all evaluations, interpretations and analyses of such data and feasibility studies relating to the Discovery prepared by or for the Contractor, with respect to may extend the Discovery and any other relevant information. If the Contractor is Appraisal Program period for an additional maximum period of the opinion that Crude Oil has been discovered in commercial quantities, it shall submit the proposal to the Management Committee for review that the Discovery be declared a Commercial Discovery. In the case of a Discovery of Gas, the provisions of Article 21 shall applyone (1) year.
10.6 The Management Committee shall, within forty (40) days of the date of the notice referred to in Article 10.5, review the proposal of the Contractor and request any other additional information it may reasonably require so as to complete the review of the proposal made by the Contractor. 8.3 The Contractor shall furnish the additional information file an application for obtaining necessary permissions and grant of Petroleum Mining Lease for Development Area within thirty (30) days from the date of submission of FDP.
8.4 The Contractor may submit multiple/integrated Field Development Plans for the requestdiscoveries depending on the development strategy adopted by Contractor. The review contractor may seek extension(s) for submission of the Field Development Plan by paying an extension fee of USD 15000 per month or part of the Management Committee month subject to a maximum period of six (6) months for Onland Blocks and twelve (12) months for Offshore Blocks. The extensions can be sought multiple times by making requisite payment subject to maximum period as stated above. This extension of time period shall be made and conveyed to automatic on payment of extension fee in the Contractor within the later of (a) ninety (90) days from the date of notice referred to in Article 10.5 or (b) forty (40) days of receipt of such other information as may be required under this Articlebank account prescribed by Government.
10.7 If the Contractor declares the Discovery a Commercial Discovery after taking into account the advice of the Management Committee as referred in the Article 10.6, within two hundred (200) days of the declaration of the Discovery as a Commercial Discovery, the Contractor 8.5 The Development Phase shall submit to the Management Committee a comprehensive development plan of the Commercial Discovery which shall:
(a) relate to the Discovery Area and contain a Reservoir or part thereof and the boundaries of the proposed Development Area;
(b) be designed to ensure the most efficient, beneficial and timely use of the Petroleum resources discovered; and
(c) be prepared in accordance begin with sound engineering, economic, safety and environmental principles recognised in the generally accepted modern oilfield and petroleum industry practices. Such plan shall contain detailed proposals by the Contractor for the construction, establishment and operation of all facilities and services for and incidental to the recovery, storage and transportation of the Petroleum from the proposed Development Area to the Delivery Point together with all data and supporting information including but not limited to:
(i) description of the nature and characteristic of the Reservoir, data, statistics, interpretations and conclusions on all aspects of the geology, Reservoir evaluation, Petroleum engineering factors, Reservoir models, estimates of reserve in place, possible production magnitude, nature and ratio of Petroleum fluids and analysis of producible Petroleum;
(ii) outlines of the development project and/or alternative development projects, if any, describing the production facilities to be installed and the number of Wxxxx to be drilled under such development project and/or alternative development projects, if any;
(iii) estimate of the rate of production to be established and projection of the possible sustained rate of production in accordance with modern oilfield and petroleum industry practices under such development project and/or alternative development projects, if any, which will ensure that the area does not suffer an excessive rate of decline of production or an excessive loss of Reservoir pressure;
(iv) estimates of Development Costs and Production Costs under such development project and/or alternative development projects, if any;
(v) Contractor’s recommendations as to the particular project that it would prefer;
(vi) Work Programme and Budget for development proposals relating to the proposed Development Area;
(vii) anticipated adverse impact on the environment and measures to be taken for prevention or minimisation thereof and for general protection of the environment in conduct of operations;
(viii) measures to be taken for the health and safety of persons employed in Petroleum Operations;
(ix) the information required in Article 21.
10.8 A proposed development plan submitted by the Contractor pursuant to Article 10.7 may be approved by the Management Committee within one hundred and ten (110) days of submission thereof or eighty (80) days of receipt of any additional information requested by the Management Committee. In case the Management Committee requires any reasonable additional information, the same shall be requested by it within eighty (80) days from the submission of the development planField Development Plan and continue till commencement of Commercial Production, unless terminated earlier. The Contractor shall provide such additional information within thirty carry out Development Operations in accordance with the Field Development Plan and Good International Petroleum Industry Practices (30) days from GIPIP).
8.6 The Contractor may revise the request by the Management Committee. If, within a period of one hundred and ten (110) days after submission of a proposed development plan or eighty (80) days from the receipt of any additional information, where asked by the Management Committee, the Management Committee fails to convey a decision Field Development Plan subject to the Contractor, the Contractor shall have option to submit the proposal to the Government. Also, where, the Management Committee rejects the development plan timelines for commencement of the Contractor, the Contractor can submit the development plan for the approval of the Government. The Government shall respond on the proposed development plan submitted by the Contractor within one hundred and ten (110) days. In case Government refuses to approve the proposed development plan, it shall convey the reasons for such refusal and the Contractor shall be given opportunity to make appropriate modifications to meet concerns of Government and the provisions of the foregoing commercial production as specified in Article and re-submit the plan within ninety (90) days from the date of receipt of refusal from the Government8.8.
10.9 A Development Plan approved by the Management Committee or Government, as may be the case, from time to time shall commit the Contractor to the obligations stipulated in Articles 10.10 to 10.12.
Appears in 1 contract
Samples: Revenue Sharing Contract
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 The Contractor shall in respect of a Discovery of Crude Oil advise the Management Committee by notice in writing within a period of eighteen (18) months for onland and shallow water blocks and thirty (30) months for deepwater blocks from the date on which the notice provided for in Article 10.1 (c) was delivered, whether such Discovery should be declared a Commercial Discovery or not. Such notice shall be accompanied by a report on the Discovery setting forth all relevant technical and economic data including estimated recoverable reserves, sustainable production levels, estimated development and production expenditures, prevailing and forecasted prices, and other pertinent technical and economic factors according to modern oilfield and petroleum industry practices as well as all evaluations, interpretations and analyses of such data and feasibility studies relating to the Discovery prepared by or for the Contractor, with respect to the Discovery and any other relevant information. If the Contractor is of the opinion that Crude Oil has been discovered in commercial quantities, it shall submit the proposal to the Management Committee for review that the Discovery be declared a Commercial Discovery. In the case of a Discovery of Gas, the provisions of Article 21 shall apply.
10.6 The Management Committee shall, within forty (40) days of the date of the notice referred to in Article 10.5, review the proposal of the Contractor and request any other additional information it may reasonably require so as to complete the review of the proposal made by the Contractor. The Contractor shall furnish the additional information within thirty (30) days from the date of the request. The review by the Management Committee shall be made and conveyed to the Contractor within the later of (a) ninety (90) days from the date of notice referred to in Article 10.5 or (b) forty (40) days of receipt of such other information as may be required under this Article.
10.7 If the Contractor declares the Discovery a Commercial Discovery after taking into account the advice of the Management Committee as referred in the Article 10.6, within two hundred (200) days of the declaration of the Discovery as a Commercial Discovery, the Contractor shall submit to the Management Committee a comprehensive development plan of the Commercial Discovery which shall:
(a) relate to the Discovery Area and contain a Reservoir or part thereof and the boundaries of the proposed Development Area;
(b) be designed to ensure the most efficient, beneficial and timely use of the Petroleum resources discovered; and
(c) be prepared in accordance with sound engineering, economic, safety and environmental principles recognised in the generally accepted modern oilfield and petroleum industry practices. Such plan shall contain detailed proposals by the Contractor for the construction, establishment and operation of all facilities and services for and incidental to the recovery, storage and transportation of the Petroleum from the proposed Development Area to the Delivery Point together with all data and supporting information including but not limited to:
(i) description of the nature and characteristic of the Reservoir, data, statistics, interpretations and conclusions on all aspects of the geology, Reservoir evaluation, Petroleum engineering factors, Reservoir models, estimates of reserve in place, possible production magnitude, nature and ratio of Petroleum fluids and analysis of producible Petroleum;
(ii) outlines of the development project and/or alternative development projects, if any, describing the production facilities to be installed and the number of Wxxxx to be drilled under such development project and/or alternative development projects, if any;
(iii) estimate of the rate of production to be established and projection of the possible sustained rate of production in accordance with modern oilfield and petroleum industry practices under such development project and/or alternative development projects, if any, which will ensure that the area does not suffer an excessive rate of decline of production or an excessive loss of Reservoir pressure;
(iv) estimates of Development Costs and Production Costs under such development project and/or alternative development projects, if any;
(v) Contractor’s recommendations as to the particular project that it would prefer;
(vi) Work Programme and Budget for development proposals relating to the proposed Development Area;
(vii) anticipated adverse impact on the environment and measures to be taken for prevention or minimisation thereof and for general protection of the environment in conduct of operations;
(viii) measures to be taken for the health and safety of persons employed in Petroleum Operations;
(ix) the information required in Article 21.
10.8 A proposed development plan submitted by the Contractor pursuant to Article 10.7 may be approved by the Management Committee within one hundred and ten (110) days of submission thereof or eighty (80) days of receipt of any additional information requested by the Management Committee. In case the Management Committee requires any reasonable additional information, the same shall be requested by it within eighty (80) days from the submission of the development plan. The Contractor shall provide such additional information within thirty (30) days from the request by the Management Committee. If, within a period of one hundred and ten (110) days after submission of a proposed development plan or eighty (80) days from the receipt of any additional information, where asked by the Management Committee, the Management Committee fails to convey a decision to the Contractor, the Contractor shall have option to submit the proposal to the Government. Also, where, the Management Committee rejects the development plan of the Contractor, the Contractor can submit the development plan for the approval of the Government. The Government shall respond on the proposed development plan submitted by the Contractor within one hundred and ten (110) days. In case Government refuses to approve the proposed development plan, it shall convey the reasons for such refusal and the Contractor shall be given opportunity to make appropriate modifications to meet concerns of Government and the provisions of the foregoing Article and re-submit the plan within ninety (90) days from the date of receipt of refusal from the Government.
10.9 A Development Plan approved by the Management Committee or Government, as may be the case, from time to time shall commit the Contractor to the obligations stipulated in Articles 10.10 to 10.12.eighteen
Appears in 1 contract
Samples: Production Sharing Agreement
DISCOVERY, DEVELOPMENT AND PRODUCTION. 10.1 9.1 If and when a Discovery is made within the Contract Area, the Contractor shall:
(a) forthwith inform the Management Committee Licensee 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, Licensee particulars in writing, 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 to the Licensee of whether, whether in the Contractor’s 's opinion, such Discovery is of potential commercial interest and merits appraisal.
10.2 9.2 If the Contractor determines to conduct a drill stem or production test, in open hole or through perforated casing, casing with regard to any Exploration Wellthe Discovery, it shall notify the Government Licensee of the time of such test at least forty eight twenty four (4824) hours prior to the proposed test, and the Government Licensee shall have the right to have a representative present during such test.
10.3 9.3 If, pursuant to Article 10.1 (c9.1(c), the Contractor notifies the Management Committee Licensee that the Discovery is of potential commercial interest, the Contractor shall prepare and submit to the Management Committee with due diligence within one hundred and twenty (120) days of such notification, a proposed Appraisal Programme with a Work Programme and Budget 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, 9.5. whether such Discovery is a Commercial Discovery and (ii) determine, with reasonable precision, the boundaries of the area to be delineated as the a Development Area.
10.4 9.4 The proposed Appraisal Programme shall be reviewed considered by the Management Managemcnt Committee within thirty forty five (3045) days after submission thereof pursuant to Article 10.393. The said Appraisal Programme, together with the Work Programme and Budget budget submitted by the Contractor, which may be revised in accordance with any agreed amendments or modified or amended additions thereto, approved by the Contractor in light of the Management Committee reviewCommittee, shall be adopted as the Appraisal Programme and the Contractor shall promptly commence implementation thereof; , and the annual Budget Yearly budget for the Exploration Period, adopted pursuant to Article 54, shall be revised accordingly.
10.5 9.5 The Contractor shall unless otherwise agreed, in respect of a each Discovery of Crude Oil Oil, advise the Management Committee by notice in writing within a maximum period of eighteen twenty four (1824) months for onland and shallow water blocks and thirty (30) months for deepwater blocks from the date on which the notice provided for in Article 10.1 (c) 9.1 was delivered, whether such Discovery should be declared discovery is a Commercial Discovery or not. Such notice shall be accompanied by a report on the Discovery setting forth all relevant technical and economic data including estimated recoverable reserves, sustainable production levels, estimated development and production expenditures, prevailing and forecasted prices, and other pertinent technical and economic factors according to modern oilfield and petroleum industry practices as well as all evaluations, interpretations and analyses analysis of such data and feasibility studies relating to the Discovery prepared by or for the Contractor, with respect to the Discovery and any other relevant informationDiscovery. If the Contractor is of the opinion that Crude Oil Petroleum has been discovered in commercial quantities, it shall submit the proposal to the Management Committee for review propose that the Managemcnt Committee declare the Discovery be declared as a Commercial Discovery. In Discovery based on the case of a Discovery of Gas, the provisions of Article 21 shall applyreport submitted.
10.6 9.6 The Management Committee shall, within forty five (4045) days of the date of the notice referred to in Article 10.59.5, review consider the proposal of the Contractor and a one-time request for any other additional information it may reasonably require so as to complete reach a decision on whether or not to declare the review of the proposal made by the ContractorDiscovery as a Commercial Discovery. The Contractor shall furnish the additional information within thirty (30) days from the date of the request. The review by the Management Committee Such decision shall be made and conveyed to the Contractor within the later period of (a) ninety (90) days from the date of notice referred to in Article 10.5 9.5 or (b) forty ninety (4090) days of receipt of such other information as may be required under this ArticleArticle 9.6.
10.7 9.7 If the Contractor declares the a Discovery is declared a Commercial Discovery after taking into account the advice of the Management Committee as referred in the Article 10.6Discovery, within two hundred (200) days of the declaration of the Discovery as a Commercial Discovery, the Contractor shall submit to the Management Committee a comprehensive plan for the development plan of the Commercial Discovery which shall:
(a) relate to the Discovery Area and contain a Reservoir or part thereof and the boundaries of the proposed Development Area;
(b) be designed to ensure the most efficient, beneficial and timely use of the Petroleum resources discovered; and
(c) be prepared in accordance with sound engineering, economic, safety and environmental principles recognised in the generally accepted modern oilfield and petroleum industry practicesDiscovery. Such plan shall contain detailed proposals by the Contractor for the construction, establishment and operation of all facilities and services for and incidental to the recovery, storage and transportation of the Petroleum from the proposed Development Area area to the Delivery Point together with all data and supporting information including but not limited to:
(ia) description of the nature and characteristic of the Reservoir, data, statistics, interpretations and conclusions on all aspects of the geology, . Reservoir evaluation, Petroleum engineering factors, Reservoir reservoir models, estimates of reserve in place, possible production magnitude, nature and ratio of Petroleum fluids and analysis of producible Petroleum;
(iib) outlines of the development project and/or alternative development projects, if any, describing the production facilities to be installed and the number of Wxxxx to be drilled under such development project and/or alternative development projects, if any;
(iiic) estimate of the rate of production to be established and projection of the possible sustained rate of production in accordance with modern oilfield and petroleum generally accepted sound industry practices under such development project and/or alternative development projects, if any, which will ensure that the area does not suffer an excessive rate of decline of production or an excessive loss of Reservoir pressure;
(ivd) estimates of Development Costs and Production Costs under such development project and/or alternative development projects, if any;
(ve) Contractor’s recommendations as to the particular project that it would prefer;
(vif) Work Programme and Budget budget for development proposals relating to proposal concerning the proposed designation of the Development Area;:
(viig) anticipated adverse impact on the environment and measures to be taken for prevention or minimisation minimization thereof and for general protection of the environment in conduct of operations;:
(viii) measures to be taken for the health and safety of persons employed in Petroleum Operations;
(ixh) the information required in Article 21Articles 21.4.1 and 21.4.2.
10.8 A 9.8 Any proposed development plan Development Plan submitted by the Contractor pursuant to Article 10.7 9.7 may be he approved by the Management Committee, with such amendments and modifications as it may decide, within two hundred seventy days (270) of the declaration of the Discovery as a Commercial Discovery. If such a Development Plan has not been approved by the Management Committee within one two hundred and ten seventy (110270) days of submission thereof or eighty (80) days of receipt of any additional information requested by the Management Committee. In case the Management Committee requires any reasonable additional informationperiod, the same Contractor shall be requested by it within eighty (80) days from have the submission right to submit such plan directly to the Government for approval. The Government shall accord its approval or rejection in writing of the development plan. The Contractor shall provide such additional information said Development Plan with reasons within thirty (30) days from the request by the Management Committee. If, within a period of one hundred and ten (110) days after submission of a proposed development plan or eighty (80) days from the receipt of any additional information, where asked by the Management Committee, submission failing which the Management Committee fails Development Plan shall be deemed to convey a decision to be approved. In the Contractor, event of rejection. the Contractor shall have option the right to submit the proposal to the Government. Also, where, the Management Committee rejects the development plan of the Contractor, the Contractor can submit the development plan for the approval of the Government. The Government shall respond on the proposed development plan submitted by the Contractor within one hundred and ten (110) days. In case Government refuses to approve the proposed development resubmit such plan, it shall convey after taking due note of the reasons for such refusal rejections and the Contractor shall be given opportunity to make appropriate modifications to meet concerns of Government and the provisions of the foregoing Article and re-submit the plan within ninety (90) days from the date of receipt of refusal from the Governmentremedying, where necessary.
10.9 9.9 A Development Plan approved by the Management Committee or Government, the Government as the case may be the casebe, from time to time shall commit the Contractor to the obligations stipulated in Articles 10.10 9.13 to 10.129.15.
9.10 The Management Committee shall obtain such approvals from the Government as may be required, except where this Contract provides that the Contractor may obtain such approvals directly.
9.11 If the Licensee considers a Discovery to be non-commercial while the Companies consider that it is commercial and the Management Committee fails to declare the Discovery as a Commercial Discovery within the time limit stipulated in Article 9.6 hereof, the Companies may declare the Discovery as a Commercial Discovery and submit development and production plans in respect of the Discovery to the Management Committee as per the provisions of Article 9.7 and after such plans have been approved by the Management Commitin or the Government, as the case may be, the Companies shall, acting solely, provide the entire Development Costs and undertake development of the said Oil Field. If, however, the said Oil Field turns out to be non-commercial, the entire Development Cost of the said Oil Field shall be reckoned as expenditure on unsuccessful exploration but shall not count as Investment in the Contract Area and shall not be recoverable as Cost Petroleum from any other Development Area.
9.12 In the event that, at the end of the Exploration Period, the Licensee considers a Discovery to be commercial, but the Companies consider the same as noncommercial, the Licensee shall give notice to tlte Companies to that effect and thereafter the Oil Fields relating to such Discovery shall be excluded from the Contract Area and the Licensee may proceed acting solely, to develop that Oil Field, providing the entire Development Cost. In that event, the Companies shall have no claim on the production from such a Development Area and such an Oil Field shall be excluded from the Contract Area for all purposes.
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Samples: Production Sharing Contract (Geoglobal Resources Inc.)
