Foreign Investment Approval. The Buyer warrants either:
Foreign Investment Approval. Buyer shall have obtained all foreign investment and other governmental approvals necessary for the Closing.
Foreign Investment Approval. If the farmee is a foreign person as defined in the Foreign Acquisitions and Takeovers Act 1975 (Cth), and the interest to be acquired by it under the farmout exceeds certain thresholds, that acquisition may be subject to approval under that Act. More specifically, the Commonwealth Treasurer may decide that it is not in the national interest to allow the acquisition to proceed and may issue an order to this effect under s 19(2) prohibiting the proposed acquisition. The Foreign Acquisitions and Takeovers Act is administered in accordance with the government’s foreign investment policy and with the assistance of the Foreign Investment Review Board (FIRB), an advisory body which has no specific statutory basis or power. The foreign investment policy is (rather inadequately) 18 Compare Offshore Petroleum Xxxx s 256. explained in the booklet entitled “Australia’s Foreign Investment Policy: A Guide for Investors”.19 This booklet makes the statement that: “Proposals to acquire an interest in an existing mineral exploration right (through, for example, ‘farm-in’ or ‘farm-out’ arrangements or a re- arrangement of interests in a joint venture agreement) are exempt from examination under the Foreign Acquisitions and Takeovers Act.” Although it is not clear, it is assumed that this applies to oil and gas farmouts as well. “Mining” is stated to include the extraction of hydrocarbons and the stated policy is that: “Proposals to be examined in the mining sector (ie those valued over $50 million) will normally be approved unless judged contrary to the national interest.” The Commonwealth Treasurer generally acts on the recommendation of FIRB but is not bound to do so. The procedure for a party such as a farmee seeking clearance of a potential acquisition is to prepare a Notice under s 25 of the Act and submit it together with such other detailed information and submissions as may be required or considered desirable to the Executive Member of FIRB in the Treasury in Canberra. Submissions must be considered within 30 days and a further 10 days is allowed to communicate the Treasurer’s decision to the applicant. As a result of these statutory periods, if an applicant has not received a response within 40 days, it can generally proceed on the basis that there is no objection to the acquisition.
Foreign Investment Approval. A resolution by the General Office will have been received providing confirmation of authorization of the transactions contemplated hereby under Spanish Law 19/2003.
