Common use of FINANCIAL GUARANTEES Clause in Contracts

FINANCIAL GUARANTEES. ‌ 28.1. On the Effective Date, upon commencement of each renewal period of the Exploration Period entered into under Article 6 and upon the approval being granted for a Minimum Exploration Work Programme under Article 11 or for any Appraisal Programme pursuant to Article 14, the Contractor shall provide the Minister with irrevocable guarantees from a guarantor of financial substance acceptable to the Minister for an amount equal to: (a) Twenty percent (20%) of the value of the expenditure commitment for the relevant Work Programme or period; (b) One hundred percent (100%) of the estimated value of the Retention work commitment prescribed under Article 8.7(g); (c) One hundred percent (100%) of the estimated cost of plugging and abandoning xxxxx and site restoration associated with Exploration Operations; the Appraisal Programme; and the Retention Period. (d) The sum of Five Million United States Dollars (US$5,000,000.00) for the performance of any obligation under the Agreement other than those covered by the guarantees under (a) above, including but not limited to obligations arising under Articles 32.1, 33.1, 37.7 and 44.7. Such guarantees shall be in the form of a bank guarantee or letter of credit and of substance acceptable to the Minister. 28.2. Upon delivery to the issuing guarantor of a certificate from the Contractor countersigned on behalf of the Minister or its Designee by a duly authorized official that the corresponding Minimum Exploration Work Programme has been completed in accordance with the Agreement and that all technical data related thereto have been delivered to the Minister the guarantee(s) shall be cancelled and discharged with regard to the applicable phase of the Exploration Period or Work Programme. 28.3. Where the Contractor has failed to perform in accordance with this Agreement all or any part of accrued Work Programmes: (a) at the end of any period of the Exploration Period; (b) at the end of an approved period in respect of a Retention Area pursuant to Article 8; (c) at the end of an approved period in respect of an Appraisal Programme pursuant to Article 14; or (d) upon termination of this Agreement, the Contractor or its guarantor shall on demand from the Minister pay the Minister the entire remaining amount of such outstanding guarantee or guarantees within two (2) weeks of receipt of a written notice from the Minister indicating the amount due to be paid. 28.4. On the Effective Date, the Contractor shall deliver to the Minister in a form acceptable to the Minister an undertaking from a financially, technically and legally competent parent company that such parent company shall provide all technical and financial resources that its subsidiary may require to meet on a timely basis the Contractor's obligations under the Agreement. Other forms of financial guarantees such as letter of credit, bank guarantee, and performance bond are acceptable.

FINANCIAL GUARANTEES. ‌ 28.1. On the Effective Date, upon commencement of each renewal period of the Exploration Period entered into under Article 6 and upon the approval being granted for a Minimum Exploration Work Programme under Article 11 or for any Appraisal Programme pursuant to Article 14, the Contractor shall provide the Minister with irrevocable guarantees from a guarantor of financial substance acceptable to the Minister for an amount equal to: (a) Twenty percent (20%) of the value of the expenditure commitment for the relevant Work Programme or period; (b) One hundred percent (100%) of the estimated value of the Retention work commitment prescribed under Article 8.7(g); (c) One hundred percent (100%) of the estimated cost of plugging and abandoning xxxxx and site restoration associated with Exploration Operations; the Appraisal Programme; and the Retention Period. (d) The sum of Five Million United States Dollars (US$5,000,000.00) for the performance of any obligation under the Agreement other than those covered by the guarantees under (a) above, including but not limited to obligations arising under Articles 32.1, 33.1, 37.7 and 44.7. Such guarantees shall be in the form of a bank guarantee or letter of credit and of substance acceptable to the Minister. 28.2. Upon delivery to the issuing guarantor of a certificate from the Contractor countersigned on behalf of the Minister or its Designee by a duly authorized official that the corresponding Minimum Exploration Work Programme has been completed in accordance with the Agreement and that all technical data related thereto have been delivered to the Minister the guarantee(s) shall be cancelled and discharged with regard to the applicable phase of the Exploration Period or Work Programme. 28.3. Where the Contractor has failed to perform in accordance with this Agreement all or any part of accrued Work Programmes: (a) at the end of any period of the Exploration Period; (b) at the end of an approved period in respect of a Retention Area pursuant to Article 8; (c) at the end of an approved period in respect of an Appraisal Programme pursuant to Article 14; or (d) upon termination of this Agreement, the Contractor or its guarantor shall on demand from the Minister pay the Minister the entire remaining amount of such outstanding guarantee or guarantees within two (2) weeks of receipt of a written notice from the Minister indicating the amount due to be paid. 28.4. On the Effective Date, the Contractor shall deliver to the Minister in a form acceptable to the Minister an undertaking from a financially, technically and legally competent parent company that such parent company shall provide all technical and financial resources that its subsidiary may require to meet on a timely basis the Contractor's obligations under the Agreement. Other forms of financial guarantees such as letter of credit, bank guarantee, and performance bond are acceptable.

FINANCIAL GUARANTEES. ‌ 28.1. On The Contractor shall provide the Minister with irrevocable guarantees on the Effective Date, upon commencement of each renewal period of the Exploration Period entered into under Article 6 6, and upon the approval being granted for a Minimum Exploration Work Programme under Article 11 or for any Appraisal Programme pursuant to Article 14, the Contractor shall provide the Minister with irrevocable guarantees from a guarantor of financial substance acceptable to the Minister for an amount equal to: (a) Twenty percent (20%) of the value of the expenditure commitment for the relevant Work Programme or period; (b) One hundred percent (100%) of the estimated value of the Retention work commitment prescribed under Article 8.7(g); (c) One hundred percent (100%) of the estimated cost of plugging and abandoning xxxxx and site restoration associated with Exploration Operations; the Appraisal Programme; and the Retention Period. (d) The sum of Five Million United States Dollars (US$5,000,000.00) for the performance of any obligation under the Agreement other than those covered by the guarantees under (a) above, including but not limited to obligations arising under Articles 32.1, 33.1, 37.7 37 and 44.7. Such guarantees shall be in the form of a bank guarantee or letter of credit and of substance acceptable to the Minister. 28.2. Upon delivery to the issuing guarantor of a certificate from the Contractor Minister, countersigned on behalf of by the Minister or its Designee by a duly authorized official Contractor, stating that the corresponding Minimum Exploration Work Programme has been completed in accordance with this Agreement and the Agreement applicable Licence, and that all technical data related thereto have been satisfactorily delivered to the Minister the guarantee(s) shall be cancelled and discharged with regard to the applicable phase of the Exploration Period or Work Programme. 28.3. Where the Contractor has failed to perform in accordance with this Agreement or any Licence all or any part of accrued Work Programmes: (a) at the end of any period of the Exploration Period; (b) at the end of an approved period in respect of a Retention Area pursuant to Article 8; (c) at the end of an approved period in respect of an Appraisal Programme pursuant to Article 14; or (d) upon termination of this Agreement, the Contractor or its guarantor shall on demand from the Minister pay the Minister the entire remaining amount of such outstanding guarantee or guarantees within two (2) weeks of receipt of a written notice from the Minister indicating the amount due to be paid. 28.4. On the Effective Date, the Contractor shall deliver to the Minister in a form acceptable to the Minister an undertaking from a financially, technically and legally competent parent company that such parent company shall provide all technical and financial resources that its subsidiary may require to meet on a timely basis the Contractor's obligations under the Agreementthis Agreement and any Licence. Other forms of financial guarantees such as letter of credit, bank guarantee, and performance bond are acceptable.

FINANCIAL GUARANTEES. ‌ 28.129.1. On the Effective Date, upon commencement of each renewal period of the Exploration Period entered into under Article 6 and upon the approval being granted for a Minimum an Exploration Work Programme under Article 11 or for any Appraisal Programme pursuant to Article 14, the Contractor shall provide the Minister with irrevocable guarantees from a guarantor of financial substance acceptable to the Minister for an amount equal to: (a) Twenty percent (20%) of the value of the expenditure commitment for the relevant Work Programme or period; (b) One hundred percent (100%) of the estimated value of the Retention work commitment prescribed under Article 8.7(g); (c) One hundred percent (100%) of the estimated cost of plugging and abandoning xxxxx and site restoration associated with Exploration Operations; the Appraisal Programme; and the Retention Period. (d) The sum of Five Million United States Dollars (US$5,000,000.00) for the performance of any obligation under the Agreement other than those covered by the guarantees under (a) above, including but not limited to . 29.2. The respective amounts of the guarantees for obligations arising under Articles 32.1, 33.1, 37.7 and 44.7. Such guarantees out of Work Programmes referred to in Article 11 shall be in be: (a) For the form initial period of a bank guarantee or letter the Exploration Period – ………… United States Dollars (US$); (b) For the first renewal of credit and the Exploration Period - ……… United States Dollars (US$); (c) For the second renewal of substance acceptable to the Minister.Exploration Period - ………… United States Dollars (US$) 28.2(d) For the third renewal of the Exploration Period - ………… United States Dollars (US$) 29.3. Upon delivery to the issuing guarantor of a certificate from the Contractor countersigned on behalf of the Minister or its Designee by a duly authorized official that the corresponding Minimum Exploration Work Programme has Units have been completed in accordance with the Agreement and that all technical data related thereto have been delivered to the Minister the guarantee(s) shall be cancelled and discharged or reduced by the value of the Work Units where a portion of the work obligation have been completed with regard to the applicable phase of the Exploration Period or Work Programme. 28.329.4. Where the Contractor has failed to perform in accordance with this Agreement all or any part of accrued Work Programmes: (a) at the end of any period of the Exploration Period; (b) at the end of an approved period in respect of a Retention Area retained Exploration area pursuant to Article 8; (c) at the end of an approved period in respect of an Appraisal Programme pursuant to Article 14; or (d) upon termination of this Agreement, the Contractor or its guarantor shall on demand from the Minister pay the Minister the entire remaining amount of such outstanding guarantee or guarantees within two (2) weeks of receipt of a written notice from the Minister indicating the amount due to be paid. 28.429.5. On the Effective Date, the Contractor shall deliver to the Minister in a form acceptable to the Minister an undertaking from a financially, technically and legally competent parent company that such parent company shall provide all technical and financial resources that its subsidiary may require to meet on a timely basis the Contractor's obligations under the Agreement. Other forms of financial guarantees such as letter of credit, bank guarantee, and performance bond are acceptable. 29.6. The amount of the financial guarantee for the Minimum Exploration Program shall be automatically subject to inflation adjustment on January 1 of each calendar year based on 29.7. Within sixty (60) Business Days of the Effective Date of the Agreement and the Effective Date of Each Renewal of the Petroleum Prospecting Licence, the Contractor shall provide to the Minister a bank guarantee for one hundred percent (100%) of the cost of plugging and abandoning xxxxx and site restoration associated with Exploration Operations; the Appraisal Programme; and the Retention Period.

FINANCIAL GUARANTEES. ‌ 28.1. On The Contractor shall provide the Minister with irrevocable guarantees on the Effective Date, upon commencement of each renewal period of the Exploration Period entered into under Article 6 and upon the approval being granted for a Minimum Exploration Work Programme under Article 11 or for any Appraisal Programme pursuant to Article 14, the Contractor shall provide the Minister with irrevocable guarantees from a guarantor of financial substance acceptable to the Minister for an amount equal to: (a) Twenty percent (20%) of the value of the expenditure commitment for the relevant Work Programme or period; (b) One hundred percent (100%) of the estimated value of the Retention work commitment prescribed under Article 8.7(g); (c) One hundred percent (100%) of the estimated cost of plugging and abandoning xxxxx and site restoration associated with Exploration Operations; the Appraisal Programme; and the Retention Period. (d) The sum of Five Million United States Dollars (US$5,000,000.00) for the performance of any obligation under the Agreement other than those covered by the guarantees under (a) above, including but not limited to obligations arising under Articles 32.1, 33.1, 37.7 and 44.7. Such guarantees shall be in the form of a bank guarantee or letter of credit and of substance acceptable to the Minister. 28.2. Upon delivery to the issuing guarantor of a certificate from the Minister, countersigned by the Contractor countersigned on behalf of the Minister or its Designee by a duly authorized official stating that the corresponding Minimum Exploration Work Programme has been completed in accordance with this Agreement and the Agreement applicable Licence, and that all technical data related thereto have been satisfactorily delivered to the Minister Minister, the guarantee(s) shall be cancelled and discharged with regard to the applicable phase of the Exploration Period or Work Programme. 28.3. Where the Contractor has failed to perform in accordance with this Agreement or any Licence, all or any part of accrued Work Programmes: (a) at the end of any period of the Exploration Period; (b) at the end of an approved period in respect of a Retention Area pursuant to Article 8; (c) at the end of an approved period in respect of an Appraisal Programme pursuant to Article 14; or (d) upon termination of this Agreement, the Contractor or its guarantor shall on demand from the Minister pay the Minister the entire remaining amount of such outstanding guarantee or guarantees within two (2) weeks of receipt of a written notice from the Minister indicating the amount due to be paid. 28.4. On the Effective Date, the Contractor shall deliver to the Minister in a form acceptable to the Minister an undertaking from a financially, technically and legally competent parent company that such parent company shall provide all technical and financial resources that its subsidiary may require to meet on a timely basis the Contractor's obligations under the Agreementthis Agreement and any Licence. Other forms of financial guarantees such as letter of credit, bank guarantee, and performance bond are acceptable.