Common use of Effectiveness of Financial Guarantees Clause in Contracts

Effectiveness of Financial Guarantees. The effectiveness of the financial guarantees shall exceed the date expected for completion of the Exploration Phase by at least one hundred and eighty (180) days. Financial guarantees shall be renewed whenever necessary, in the amount adjusted by inflation, pursuant to the provisions of paragraph 11.13. In case of suspension of the Exploration Phase, the renewal of the financial guarantees shall cover a term of no less than one (1) year. In case the Contractor does not comply with the provisions of paragraph 11.13, ANP may terminate the Agreement as provided for in item “a” of paragraph 32.4. In the event of expiration of the financial guarantees, at ANP’s discretion, the Contractor shall replace them or provide additional guarantees. If the guarantee has been provided as an Oil and Gas pledge agreement, ANP may, pursuant to the tender protocol and the pledge agreement entered into by and between the parties, call for margin or, alternatively, request provision of a new guarantee in order to cover any difference between the required guarantee and the actual guarantee. In case of pledge agreements, if the secured amount is lower than the amount of the guarantee adjusted under the terms above, the Contractor shall have up to sixty (60) days of receipt of the notice referred to in the preceding paragraph to adjust the financial guarantees. Reduction in the Secured Amount As the Consortium Members develop the activities related to the Minimum Exploration Program or, as the case may be, the additional exploration activities in consideration for extension of the Exploration Phase, the Contractors may request ANP to reduce the amount of the financial guarantee deposited. The amount of the financial guarantee may not be reduced less often than at every three (3) months. Reduction in the amount of the financial guarantee may not be lower than an amount that, when converted, corresponds to twenty percent (20%) of the total exploration activities committed. The drilling Operations may only imply reduction in the amount of the financial guarantees when, cumulatively: the well has reached the exploratory objective; the well has been completed; and data and information related to the well have been attested according to technical standards established by ANP. The Operations for collection and/or reprocessing of technical data referred to in Annex II may only imply reduction in the amount of the financial guarantees to the extent that data and information submitted to ANP have been attested according to the technical standards established by ANP. Return of the Financial Guarantees In the absence of outstanding issues, ANP shall issue the certificate of completion of the Minimum Exploration Program or, as the case may be, of the additional exploration activities in consideration for extension of the Exploration Phase within thirty (30) days after its completion and, then, it shall return the respective financial guarantees.

Effectiveness of Financial Guarantees. The effectiveness of the financial guarantees guarantee shall exceed the date expected for completion of the Exploration Phase by at least one hundred and eighty (180) days. Financial guarantees shall be renewed whenever necessary, in the amount adjusted by inflation, pursuant to the provisions of paragraph 11.13. In case of suspension of the Exploration Phase, the renewal of the financial guarantees shall cover a term of no less than one (1) year. In case the Contractor does not comply with the provisions of paragraph 11.13, ANP may terminate the Agreement as provided for in item “a” of paragraph 32.411.12. In the event of expiration of the financial guarantees, at ANP’s discretion, the Contractor Contracted Party shall replace them or provide additional guarantees. If the guarantee has been provided as an Oil and Gas pledge agreement, ANP maymay notify the Contracted Party in order to, pursuant to the tender protocol and the pledge agreement entered into by and between the parties, call for margin or, alternatively, request provision of a new guarantee in order to cover any difference between the required guarantee and the actual guarantee. In case of pledge agreements, if the secured amount is lower than the amount of the guarantee adjusted under the terms above, the Contractor shall have in up to sixty (60) days of receipt of the notice referred to in the preceding paragraph to adjust the financial guaranteesnotification. Reduction in of the Amount Secured Amount As the Consortium Members develop the activities related to the Minimum Exploration Program or, as the case may be, the additional exploration activities in consideration for the extension of the Exploration Phase, the Contractors Contracted Parties may request ANP to reduce the amount of the financial guarantee deposited. The amount of the financial guarantee may not be reduced less often than at every three (3) months. Reduction in the amount of the financial guarantee may not be lower than an amount that, when converted, corresponds to twenty percent (20%) of the total exploration activities committed. The drilling Operations may only imply reduction in the amount of the financial guarantees when, cumulatively: the well has reached the exploratory objective; the well has been completed; and data and information related to the well have been attested according to technical standards established by ANP. The Operations operations for collection acquisition and/or reprocessing of technical data referred to in Annex II may only imply reduction in the amount of the financial guarantees to the extent that data and information submitted to ANP have been attested according to the technical standards established by ANP. Return of the Financial Guarantees In the absence of outstanding issues, ANP shall issue the certificate of completion of the Minimum Exploration Program or, as the case may be, of the additional exploration activities in consideration for extension of the Exploration Phase Phase, within thirty (30) days after its completion and, then, it shall return the respective financial guarantees.

Effectiveness of Financial Guarantees. The effectiveness of the financial guarantees guarantee shall exceed the date expected for completion of the Exploration Rehabilitation Phase by at least one hundred and eighty (180) days. Financial guarantees shall be renewed whenever necessary, in the amount adjusted by inflation, pursuant to the provisions of paragraph 11.1314.8. In case of suspension of If the Exploration PhaseRehabilitation Phase is suspended or extended, the renewal of the financial guarantees shall be updated or renewed in order to cover a term of no less than one hundred and eighty (1180) year. In case days as of the Contractor does not comply with the provisions of paragraph 11.13, ANP may terminate the Agreement as provided for in item “a” of paragraph 32.4new date on which this Phase shall be completed. In the event of expiration of the financial guarantees, at ANP’s discretion, the Contractor Concessionaire shall replace them or provide additional guarantees. Review of the Secured Amount ANP may reasonably adjust the monetary amount of the financial guarantees and notify the Concessionaire so that it updates the guarantees already provided. The Concessionaire shall have up to sixty (60) days of receipt of the notification to update the financial guarantees. ANP may not make any adjustments in intervals of less than one (1) year. If the guarantee has been provided as an Oil and Gas pledge agreement, ANP maymay notify the Concessionaire in order to, pursuant to the tender protocol and the pledge agreement entered into by and between the parties, call for margin or, alternatively, request provision of provide to ANP a new guarantee in order to cover any difference between the required guarantee and the actual guarantee. In case of pledge agreements, if the secured amount is lower than the amount of the guarantee adjusted under the terms above, the Contractor shall have in up to sixty (60) days of receipt of the notice referred to in the preceding paragraph to adjust the financial guarantees. Reduction in the Secured Amount As the Consortium Members develop the activities related to the Minimum Exploration Program or, as the case may be, the additional exploration activities in consideration for extension of the Exploration Phase, the Contractors may request ANP to reduce the amount of the financial guarantee deposited. The amount of the financial guarantee may not be reduced less often than at every three (3) months. Reduction in the amount of the financial guarantee may not be lower than an amount that, when converted, corresponds to twenty percent (20%) of the total exploration activities committed. The drilling Operations may only imply reduction in the amount of the financial guarantees when, cumulatively: the well has reached the exploratory objective; the well has been completed; and data and information related to the well have been attested according to technical standards established by ANP. The Operations for collection and/or reprocessing of technical data referred to in Annex II may only imply reduction in the amount of the financial guarantees to the extent that data and information submitted to ANP have been attested according to the technical standards established by ANPnotification. Return of the Financial Guarantees In At the absence end of outstanding issuesthe Rehabilitation Phase, and once the Rehabilitation Phase Final Report is approved, ANP shall issue return the certificate of completion respective financial guarantees to the Concessionaire in up to ninety (90) days. Enforcement of the Minimum Exploration Program orCompensatory Penalty If verified failure to comply with the Initial Work Program, ANP shall summon the Concessionaire to pay the amount corresponding to the non-executed portion, as the case may becompensatory penalty, of the additional exploration activities in consideration for extension of the Exploration Phase within thirty (30) days after its completion anddays, thenwithout any discount for voluntary payment. In the absence of the voluntary payment, it ANP shall return register the respective debit in the overdue tax system and execute the amount due, plus applicable statutory charges, deducted from the debit the amount already executed from the corresponding financial guarantees. The amount of the imposition set forth in the penalty clause shall be adjusted by the IGP-DI until the date on which the effective payment is made. Receipt of the amount corresponding to the compensatory penalty for failure to implement the Initial Work Program: does not exempt the Concessionaire from performing the other obligations arising from the Agreement; does not affect ANP’s right to seek other remedies and impose any applicable sanctions for acts other than the mere failure to implement the Initial Work Program; and does not allow the Concessionaire to advance to the Production Phase. For escrow deposit, the guarantee shall be performed upon withdrawal of the adjusted amount, through correspondence from ANP to the depositary, regardless of prior authorization of the depositor. If ANP compulsorily excludes a member of the consortium under the Concession Agreement, the financial guarantee provided shall be executed and the PTI may be partially deducted, and the rights and obligations arising from the excluded consortium member’s share are spread between the other participants.

Effectiveness of Financial Guarantees. The effectiveness of the financial guarantees guarantee shall exceed the date expected for completion of the Exploration Rehabilitation Phase by at least one hundred and eighty (180) days. Financial guarantees shall be renewed whenever necessary, in the amount adjusted by inflation, pursuant to the provisions of paragraph 11.1314.8. In case of suspension of If the Exploration PhaseRehabilitation Phase is suspended or extended, the renewal of the financial guarantees shall be updated or renewed in order to cover a term of no less than one hundred and eighty (1180) year. In case days as of the Contractor does not comply with the provisions of paragraph 11.13, ANP may terminate the Agreement as provided for in item “a” of paragraph 32.4new date on which this Phase shall be completed. In the event of expiration of the financial guarantees, at ANP’s discretion, the Contractor Concessionaire shall replace them or provide additional guarantees. Review of the Secured Amount ANP may reasonably adjust the monetary amount of the financial guarantees and notify the Concessionaire so that it updates the guarantees already provided. The Concessionaire shall have up to sixty (60) days of receipt of the notification to update the financial guarantees. ANP may not make any adjustments in intervals of less than one (1) year. If the guarantee has been provided as an Oil and Gas pledge agreement, ANP maymay notify the Concessionaire in order to, pursuant to the tender protocol and the pledge agreement entered into by and between the parties, call for margin or, alternatively, request provision of provide to ANP a new guarantee in order to cover any difference between the required guarantee and the actual guarantee. In case of pledge agreements, if the secured amount is lower than the amount of the guarantee adjusted under the terms above, the Contractor shall have in up to sixty (60) days of receipt of the notice referred to in the preceding paragraph to adjust the financial guarantees. Reduction in the Secured Amount As the Consortium Members develop the activities related to the Minimum Exploration Program or, as the case may be, the additional exploration activities in consideration for extension of the Exploration Phase, the Contractors may request ANP to reduce the amount of the financial guarantee deposited. The amount of the financial guarantee may not be reduced less often than at every three (3) months. Reduction in the amount of the financial guarantee may not be lower than an amount that, when converted, corresponds to twenty percent (20%) of the total exploration activities committed. The drilling Operations may only imply reduction in the amount of the financial guarantees when, cumulatively: the well has reached the exploratory objective; the well has been completed; and data and information related to the well have been attested according to technical standards established by ANP. The Operations for collection and/or reprocessing of technical data referred to in Annex II may only imply reduction in the amount of the financial guarantees to the extent that data and information submitted to ANP have been attested according to the technical standards established by ANPnotification. Return of the Financial Guarantees In At the absence end of outstanding issuesthe Rehabilitation Phase, and once the Rehabilitation Phase Final Report is approved, ANP shall issue return the certificate of completion respective financial guarantees to the Concessionaire in up to ninety (90) days. Enforcement of the Minimum Exploration Program orCompensatory Penalty If verified failure to comply with the Initial Work Program, ANP shall summon the Concessionaire to pay the amount corresponding to the non-executed portion, as the case may becompensatory penalty, of the additional exploration activities in consideration for extension of the Exploration Phase within thirty (30) days after its completion anddays, thenwithout any discount for voluntary payment. In the absence of the voluntary payment, it ANP shall return register the respective debit in the overdue tax system and execute the amount due, plus applicable statutory charges, deducted from the debit the amount already executed from the corresponding financial guarantees. The amount of the imposition set forth in the penalty clause shall be adjusted by the IGP-DI until the date on which the effective payment is made. ANP’s representation of contract default has immediate effect and characterizes a cause sufficient to execute the bid bond offered, including performance bond. Suspension of the performance of the financial guarantee upon ANP’s decision, pursuant to item “m” of paragraph 30.5, or of the arbitration award or court decision in effect does not prevent communication of the loss by ANP to the insurance company, within the effective period of the corresponding guarantee. After suspension is terminated with no reversal of the administrative decision referred to in paragraph 14.14.3, the effective performance of the financial guarantee shall come upon termination of the suspension, even if the original effective period of the guarantee is expired. Receipt of the amount corresponding to the compensatory penalty for failure to implement the Initial Work Program: does not exempt the Concessionaire from performing the other obligations arising from the Agreement; does not affect ANP’s right to seek other remedies and impose any applicable sanctions for acts other than the mere failure to implement the Initial Work Program; and does not allow the Concessionaire to advance to the Production Phase. For escrow deposit, the guarantee shall be performed upon withdrawal of the adjusted amount, through correspondence from ANP to the depositary, regardless of prior authorization of the depositor.

Effectiveness of Financial Guarantees. The effectiveness of the financial guarantees guarantee shall exceed the date expected for completion of the Exploration Phase by at least one hundred and eighty (180) days. Financial guarantees shall be renewed whenever necessary, in the amount adjusted by inflation, pursuant to the provisions of paragraph 11.13. In case of suspension of the Exploration Phase, the renewal of the financial guarantees shall cover a term of no less than one (1) year. In case the Contractor does not comply with the provisions of paragraph 11.13, ANP may terminate the Agreement as provided for in item “a” of paragraph 32.46.9. In the event of expiration of the financial guarantees, at ANP’s discretion, the Contractor Concessionaire shall replace them or provide additional guarantees. If the guarantee has been provided as an Oil and Gas pledge agreement, ANP maymay notify the Concessionaire in order to, pursuant to the tender protocol and the pledge agreement entered into by and between the parties, call for margin or, alternatively, request provision to ANP of a new guarantee in order to cover any difference between the required guarantee and the actual guarantee. In case of pledge agreements, if the secured amount is lower than the amount of the guarantee adjusted under the terms above, the Contractor shall have in up to sixty (60) days of receipt of the notice referred to in the preceding paragraph to adjust the financial guaranteesnotification. Reduction in the Secured Amount As the Consortium Members develop Concessionaire develops the activities related to the Minimum Exploration Program orProgram, as the case may be, the additional exploration activities in consideration for extension of the Exploration Phase, the Contractors it may request ANP to reduce the amount of the financial guarantee deposited. The amount of the financial guarantee for the Minimum Exploration Program may not be reduced less often than at every three (3) months. Reduction in the amount of the financial guarantee for the Minimum Exploration Program may not be lower than an amount that, when converted, corresponds to twenty percent (20%) of the total exploration activities Units of Work or the investment committed. The drilling Operations may only imply reduction in the amount of the financial guarantees for the Minimum Exploration Program when, cumulatively: the well has reached the exploratory objective; the well has been completed; and data and information related to the well have been attested according to technical standards established by ANP. The Operations operations for collection and/or reprocessing of technical data referred to in Annex II may only imply reduction in the amount of the financial guarantees to the extent that data and information submitted to ANP have been attested according to the technical standards established by ANP. Return of the Financial Guarantees In the absence of outstanding issues, ANP shall issue the certificate of completion of the Minimum Exploration Program or, as the case may be, of the additional exploration activities in consideration for extension of the Exploration Phase within thirty (30) days after its completion and, then, it shall return the respective financial guarantees.

Effectiveness of Financial Guarantees. The effectiveness of the financial guarantees guarantee shall exceed the date expected for completion of the Exploration Phase by at least one hundred and eighty (180) days. Financial guarantees shall be renewed whenever necessary, in the amount adjusted by inflation, pursuant to the provisions of paragraph 11.13. In case of suspension of the Exploration Phase, the renewal of the financial guarantees shall cover a term of no less than one (1) year. In case the Contractor does not comply with the provisions of paragraph 11.13, ANP may terminate the Agreement as provided for in item “a” of paragraph 32.46.9. In the event of expiration of the financial guarantees, at ANP’s discretion, the Contractor Concessionaire shall replace them or provide additional guarantees. If the guarantee has been provided as an Oil and Gas pledge agreement, ANP maymay notify the Concessionaire in order to, pursuant to the tender protocol and the pledge agreement entered into by and between the parties, call for margin or, alternatively, request provision to ANP of a new guarantee in order to cover any difference between the required guarantee and the actual guarantee. In case of pledge agreements, if the secured amount is lower than the amount of the guarantee adjusted under the terms above, the Contractor shall have in up to sixty (60) days of receipt of the notice referred to in the preceding paragraph to adjust the financial guaranteesnotification. Reduction in of the Amount Secured Amount As the Consortium Members develop Concessionaire develops the activities related to the Minimum Exploration Program orProgram, as the case may be, the additional exploration activities in consideration for extension of the Exploration Phase, the Contractors it may request ANP to reduce the amount of the financial guarantee deposited. The amount of the financial guarantee for the Minimum Exploration Program may not be reduced less often than at every three (3) months. Reduction in the amount of the financial guarantee for the Minimum Exploration Program may not be lower than an amount that, when converted, corresponds to twenty percent (20%) of the total exploration activities Units of Work or the investment committed. The drilling Operations may only imply reduction in the amount of the financial guarantees for the Minimum Exploration Program when, cumulatively: the well has reached achieved the exploratory objectivemain purpose approved in the Notice of Well Drilling; the well has been completed; and data and information related to the well have been attested according submitted to technical standards established and assessed by ANP. The Operations operations for collection acquisition and/or reprocessing of technical data referred to in Annex II may only imply reduction in the amount of the financial guarantees to the extent that data and information have been submitted to ANP have been attested according to the technical standards established and assessed by ANP. Return of the Financial Guarantees In the absence of outstanding issues, ANP shall issue the certificate of completion of the Minimum Exploration Program or, as the case may be, of the additional exploration activities in consideration for extension of the Exploration Phase within thirty (30) days after its completion and, then, it shall return the respective financial guarantees.

Effectiveness of Financial Guarantees. The effectiveness of the financial guarantees shall exceed the date expected for completion of the Exploration Phase by at least one hundred and eighty (180) days. Financial guarantees shall be renewed whenever necessary, in the amount adjusted by inflation, pursuant to the provisions of paragraph 11.13. In case of suspension of the Exploration Phase, the renewal of the financial guarantees shall cover a term of no less than one (1) year. In case the Contractor does not comply with the provisions of paragraph 11.1311.9, ANP may terminate the Agreement as provided for in item “a” of paragraph 32.4. In the event of expiration of the financial guarantees, at ANP’s discretion, the Contractor shall replace them or provide additional guarantees. If the guarantee has been provided as an “Oil and Gas pledge agreement”, ANP may, pursuant to the tender protocol and the pledge agreement entered into by and between the parties, call for margin or, alternatively, request provision of a new guarantee in order to cover any difference between the required guarantee and the actual guarantee. In case of pledge agreements, if the secured amount is lower than the amount of the guarantee adjusted under the terms above, the Contractor shall have up to sixty (60) days of receipt of the notice referred to in the preceding paragraph to adjust the financial guarantees. Reduction in the Secured Amount As the Consortium Members develop develops the activities related to the Minimum Exploration Program or, as the case may be, the additional exploration activities in consideration for extension of the Exploration PhaseProgram, the Contractors may request ANP to reduce the amount of the financial guarantee deposited. The amount of the financial guarantee for the Minimum Exploration Program may not be reduced less often than at every three (3) months. Reduction in the amount of the financial guarantee for the Minimum Exploration Program may not be lower than an amount that, when converted, corresponds to twenty percent (20%) of the total exploration activities committed. The drilling Operations may only imply reduction in the amount of the financial guarantees for the Minimum Exploration Program when, cumulatively: the well has reached the exploratory objective; the well has been completed; and data and information related to the well have been attested according to technical standards established by ANP. The Operations for collection and/or reprocessing acquisition of technical data referred to in Annex II seismic and geochemical data, or by potential methods, may only imply reduction in the amount of the financial guarantees of the Minimum Exploration Program to the extent that data and information submitted to ANP have been attested according to the technical standards established by ANP. Return of the Financial Guarantees In the absence of outstanding issues, ANP shall issue the certificate of completion of the Minimum Exploration Program or, as the case may be, of the additional exploration activities in consideration for extension of the Exploration Phase within thirty (30) days after its completion and, then, it shall return the respective financial guarantees. In case of oil pledge agreements and escrow deposit, if the secured amount is lower than the amount of the guarantee adjusted under the terms above, the Contractor shall have up to sixty (60) days of receipt of the notice referred to in the preceding paragraph to update the financial guarantees.

Effectiveness of Financial Guarantees. The effectiveness of the financial guarantees guarantee shall exceed the date expected for completion of the Exploration Phase by at least one hundred and eighty (180) days. Financial guarantees Whenever necessary, including in case of extension or suspension in the schedule expected for the Minimum Exploration Program, the financial guarantee shall be renewed whenever necessary, in the amount adjusted by inflation, pursuant order to comply with the provisions of in paragraph 11.136.6. In case of suspension of the Exploration Phase, the renewal of the financial guarantees guarantee shall cover a term of no less than one 1 (1one) year. In case the Contractor does not comply with the provisions of paragraph 11.13, ANP may terminate the Agreement as provided for in item “a” of paragraph 32.4. In the event of expiration of the financial guaranteesguarantee, at ANP’s discretion, the Contractor Concessionaire shall replace them it or provide an additional guaranteesguarantee. If the guarantee has been provided as an “Oil and Gas pledge agreement”, ANP may, pursuant to the tender protocol Call for Bids and the pledge agreement Pledge Agreement entered into by and between the parties, call for margin or, alternatively, request provision to ANP of a new guarantee in order to cover any difference between the required guarantee and the actual effective guarantee. In case of pledge agreements, if the secured amount is lower than the amount of the guarantee adjusted under the terms above, the Contractor shall have up to sixty (60) days of receipt of the notice referred to in the preceding paragraph to adjust the financial guarantees. Reduction in the Secured Amount As the Consortium Members develop Concessionaire develops the activities related to the Minimum Exploration Program orProgram, as the case may be, the additional exploration activities in consideration for extension of the Exploration Phase, the Contractors it may request ANP to reduce the amount of the financial guarantee deposited. The Reduction in the amount of the financial guarantee for the Minimum Exploration Program may not be reduced occur less often than at every three (3) months. Reduction in the amount of the financial guarantee for the Minimum Exploration Program may not be lower than an amount that, when converted, corresponds to twenty percent (20%) of the total exploration activities Units of Work or the investment committed. The drilling Operations may only imply reduction in the amount of the financial guarantees for the Minimum Exploration Program when, cumulatively: the well has reached the exploratory objectivestratigraphic targets; the well has been completed; and data and information related to the well have been attested according to technical standards established by ANP. The Operations for collection and/or acquisition and reprocessing of technical data referred to in Annex II seismic and geochemical data, or by potential and electromagnetic methods, may only imply reduction in the amount of the financial guarantees of the Exploration Program to the extent that data and information its results are submitted to ANP have been attested according to and its compliance with the technical Agency’s standards established by ANPis duly attested. Return of the Financial Guarantees In the absence of outstanding issues, ANP shall issue the certificate of completion of the Minimum Exploration Program or, as the case may be, of the additional exploration activities in consideration for extension of the Exploration Phase within thirty (30) days after its completion and, then, it shall return the respective financial guarantees.

Effectiveness of Financial Guarantees. The effectiveness of the financial guarantees shall exceed the date expected for completion of the Exploration Phase by at least one hundred and eighty (180) days. Financial guarantees shall be renewed whenever necessary, in the amount adjusted by inflation, pursuant to the provisions of paragraph 11.1311.9. In case of suspension of the Exploration Phase, the renewal of the financial guarantees shall cover a term of no less than one (1) year. In case the Contractor does not comply with the provisions of paragraph 11.1311.9, ANP may terminate the Agreement as provided for in item “a” of paragraph 32.4. In the event of expiration of the financial guarantees, at ANP’s discretion, the Contractor shall replace them or provide additional guarantees. If the guarantee has been provided as an “Oil and Gas pledge agreement”, ANP may, pursuant to the tender protocol and the pledge agreement entered into by and between the parties, call for margin or, alternatively, request provision of a new guarantee in order to cover any difference between the required guarantee and the actual guarantee. In case of pledge agreements, if the secured amount is lower than the amount of the guarantee adjusted under the terms above, the Contractor shall have up to sixty (60) days of receipt of the notice referred to in the preceding paragraph to adjust the financial guarantees. Reduction in the Secured Amount As the Consortium Members develop the activities related to the Minimum Exploration Program or, as the case may be, the additional exploration activities in consideration for extension of the Exploration PhaseProgram, the Contractors may request ANP to reduce the amount of the financial guarantee deposited. The amount of the financial guarantee for the Minimum Exploration Program may not be reduced less often than at every three (3) months. Reduction in the amount of the financial guarantee for the Minimum Exploration Program may not be lower than an amount that, when converted, corresponds to twenty percent (20%) of the total exploration activities committed. The drilling Operations may only imply reduction in the amount of the financial guarantees for the Minimum Exploration Program when, cumulatively: the well has reached the exploratory objective; the well has been completed; and data and information related to the well have been attested according to technical standards established by ANP. The Operations for collection and/or reprocessing acquisition of technical data referred to in Annex II seismic and geochemical data, or by potential methods, may only imply reduction in the amount of the financial guarantees of the Minimum Exploration Program to the extent that data and information submitted to ANP have been attested according to the technical standards established by ANP. Return of the Financial Guarantees In the absence of outstanding issues, ANP shall issue the certificate of completion of the Minimum Exploration Program or, as the case may be, of the additional exploration activities in consideration for extension of the Exploration Phase within thirty (30) days after its completion and, then, it shall return the respective financial guarantees. In case of oil pledge agreements and escrow deposit, if the secured amount is lower than the amount of the guarantee adjusted under the terms above, the Contractor shall have up to sixty (60) days of receipt of the notice referred to in the preceding paragraph to update the financial guarantees. Execution of the Financial Guarantees If the Consortium Members do not comply with the Minimum Exploration Program, ANP shall summon the Consortium Members to pay the amount corresponding to the non-executed portion, calculated under this Agreement, within thirty (30) days, and, in case of default, it shall execute the relevant financial guarantees. Receipt of the amount corresponding to the compensatory penalty for failure to implement the Minimum Exploration Program: does not exempt the Consortium Members from performing the other obligations arising from the Agreement; does not affect ANP’s right to seek other remedies and impose any applicable sanctions for acts other than the mere failure to implement the Minimum Exploration Program; does not entitle the Consortium Members to move to the Production Phase For escrow deposit, the guarantee shall be executed upon withdrawal of the amount corresponding to the non-executed portion of the Minimum Exploration Program through correspondence between ANP and the depositary, regardless of prior authorization from the depositor. Section TWELVE – discovery and assessment Notification of Discovery Any Discovery of Oil and/or Gas in the Contract Area must be notified by the Consortium Members to ANP on an exclusive basis within no more than seventy-two (72) hours.