Common use of Funding of Abandonment Trust Clause in Contracts

Funding of Abandonment Trust. The Contractor shall deposit in the Abandonment Trust one-fourth (1/4) of the Annual Contribution at the end of each Quarter. The Annual Contribution for Abandonment activities in the Contract Area shall be determined based on the following formula: AAt=Maximum [0,(PAEt/RRR)*CAE-IAt] Where: AAt = Annual Contribution. PAEt = Estimated Production in the Field for the Year of calculation. RR = Remaining Reserves at the beginning of the Year of calculation, as determined by the Contractor based on the methodology established by CNH. These shall be consistent with the volume of Hydrocarbons to be recovered since the beginning of the Year of calculation, until whatever happens first: (i) the natural termination of the Contract or (ii) the Year in which it is estimated that Abandonment activities will be finalized in the Field. CAE = Remaining amount of the Costs of Abandonment at the beginning of the Year of calculation, estimated pursuant to the approved Development Plan, as it may be modified. Such remaining amount will be calculated as the difference between the global amount of the Costs of Abandonment estimated on the basis of the future Costs of Abandonment for the Field since the Year of calculation until the earlier to occur between: (i) the natural termination of the Contract or (ii) the Year in which it is estimated that Abandonment activities will be finalized in the Field, according to technical studies conducted by the Contractor and approved by CNH, minus the accumulated balance in the Abandonment Trust at the beginning of the Year of Calculation (AAAt-1). IAt = The interest generated in the Trust in the Year of calculation, using the following formula: IAt = rt * AAAt-1 Where: rt = Is the interest rate applicable to the balance in the Abandonment Trust. AAAt = Is the aggregate balance in the Abandonment Trust at the end of the Year of calculation, defined as follows: AAAt = AAAt-1+AAt+IAt-St-1. Where: St-1 = Is the total amount withdrawn from the Abandonment Trust during the Year of calculation to finance the Abandonment activities performed in the same Year.

Funding of Abandonment Trust. The Contractor shall deposit in the Abandonment Trust one-fourth (1/4) of the Annual Contribution at the end of each Quarter. The Annual Contribution for Abandonment activities in the Contract Area shall be determined based on the following formula: AAt=Maximum [0,(PAEt/RRR)*CAE-IAt] Where: AAt = Annual Contribution. PAEt = Estimated Production in the Field for the Year of calculation. RR = Remaining Reserves at the beginning of the Year of calculation, as determined by the Contractor based on the methodology established by CNH. These shall be consistent with the volume of Hydrocarbons to be recovered since the beginning of the Year of calculation, until whatever happens first: (i) the natural termination of the Contract or (ii) the Year in which it is estimated that Abandonment activities will be finalized in the Field. CAE = Remaining amount of the Costs of Abandonment at the beginning of the Year of calculation, estimated pursuant to the approved Development Plan, as it may be modified. Such remaining amount will be calculated as the difference between the global amount of the Costs of Abandonment estimated on the basis of the future Costs of Abandonment for the Field since the Year of calculation until the earlier to occur between: (i) the natural termination of the Contract or (ii) the Year in which it is estimated that Abandonment activities will be finalized in the Field, according to technical studies conducted by the Contractor and approved by CNH, minus the accumulated balance in the Abandonment Trust at the beginning of the Year of Calculation (AAAt-1AAAt- 1). IAt = The interest generated in the Trust in the Year of calculation, using the following formula: IAt = rt * AAAt-1 Where: rt = Is the interest rate applicable to the balance in the Abandonment Trust. AAAt = Is the aggregate balance in the Abandonment Trust at the end of the Year of calculation, defined as follows: AAAt = AAAt-1+AAt+IAt-St-1. Where: St-1 = Is the total amount withdrawn from the Abandonment Trust during the Year of calculation to finance the Abandonment activities performed in the same Year.

Funding of Abandonment Trust. The Contractor shall deposit in the Abandonment Trust one-fourth (1/4) of the Annual Contribution at the end of each Quarter. The Annual Contribution annual contribution for Abandonment activities in the Contract Area shall be determined based on the following formula: AAt=Maximum [0,(PAEtMaximum[0,PAEt/RRR)*CAERR)*CAE-IAt] Where: AAt = Annual Contribution. PAEt = Estimated Production in the Field for the Year of calculation. RR = Remaining Reserves Reserves, remaining at the beginning of the Year of calculationcalculation Year, as determined by the Contractor quantified based on the methodology established by CNH. These shall remaining reserves should be consistent with the volume of Hydrocarbons to be recovered recover since the beginning of the Year of calculationcalculation Year, until whatever happens firstthe earlier to occur of between: (i) the natural termination of the this Contract or (ii) the Year in which it is estimated that Abandonment activities will be finalized completed in the Field. CAE = Remaining amount of the Costs of Abandonment at the beginning of the Year of calculationcalculation Year, estimated pursuant to the approved Development Plan, as it may be modified. Such remaining amount will be calculated as the difference between the global amount of the Costs of Abandonment estimated on the basis of the future Costs of Abandonment for the Field since the Year of calculation until the earlier to occur between: (i) the natural termination of the Contract or (ii) the Year in which it is estimated that Abandonment activities will be finalized in the Field, according to technical studies conducted by the Contractor and approved by CNH, minus CNH less the IAt = accumulated balance in the Abandonment Trust at the beginning of the Year of Calculation calculation year (AAAt-1). IAt = The Is the generated interest generated in the Trust in on the Year of calculationcalculation Year, using following the following next formula: IAt = rt * AAAt-1 Where: IAt=rt*AAA Where rt = Is the interest rate applicable to the balance in the Abandonment Trust. AAAt = Is the aggregate accumulated balance in the Abandonment Trust at the end of the Year of calculationcalculation Year, defined as follows: AAAt = AAAt-1+AAt+IAt-St-1. St-1 Where: St-1 = Is the total amount withdrawn retired from the Abandonment Trust during the calculation Year of calculation to finance the Abandonment activities performed in the same conducted that Year.

Funding of Abandonment Trust. The Contractor shall deposit in the Abandonment Trust one-fourth (1/4) of the Annual Contribution at the end of each Quarter. The Annual Contribution annual contribution for Abandonment activities in the Contract Area shall be determined based on the following formula: AAt=Maximum [0,(PAEtMaximum[0,(PAEt/RRR)*CAERR)*CAE-IAt] Where: AAt = Annual Contribution. PAEt = Estimated Production in the Field for the Year of calculation. RR = Remaining Reserves Reserves, remaining at the beginning of the Year of calculationcalculation Year, as determined by the Contractor quantified based on the methodology established by CNH. These shall remaining reserves should be consistent with the volume of Hydrocarbons to be recovered recover since the beginning of the Year of calculationcalculation Year, until whatever happens firstthe earlier to occur of between: (i) the natural termination of the this Contract or (ii) the Year in which it is estimated that Abandonment activities will be finalized completed in the Field. CAE = Remaining amount of the Costs of Abandonment at the beginning of the Year of calculationcalculation Year, estimated pursuant to the approved Development Plan, as it may be modified. Such remaining amount will be calculated as the difference between the global amount of the Costs of Abandonment that is estimated on over the basis base of the future Costs of Abandonment for the Field since the calculation Year of calculation until the earlier to occur between: (i) the natural termination of the Contract Contract, or (ii) the estimated Year in which it is estimated that for the termination of the activities of Abandonment activities will be finalized in the Field, Field according to technical studies conducted by the Contractor and approved by CNH, minus the accumulated balance in the Abandonment Trust at the beginning of the Year of Calculation calculation year (AAAt-1). IAt = The Is the generated interest generated in the Trust in on the Year of calculationcalculation Year, using following the following next formula: IAt = rt * AAAt-1 Where: IAt=rt*AAAt-1 Where rt = Is the interest rate applicable to the balance in the Abandonment Trust. AAAt = Is the aggregate accumulated balance in the Abandonment Trust at the end of the Year of calculationcalculation Year, defined as follows: AAAt = AAAt-1+AAt+IAt-St-1. St-1 Where: St-1 = Is the total amount withdrawn retired from the Abandonment Trust during the calculation Year of calculation to finance the Abandonment activities performed in the same conducted that Year.

Funding of Abandonment Trust. The Contractor shall deposit in the Abandonment Trust one-fourth (1/4) of the Annual Contribution at the end of each Quarter. The Annual Contribution annual contribution for Abandonment activities in the Contract Area shall be determined based on the following formula: AAt=Maximum [0,(PAEtMaximum[0,PAEt/RRR)*CAERR)*CAE-IAt] Where: AAt = Annual Contribution. PAEt = Estimated Production in the Field for the Year of calculation. RR = Remaining Reserves Reserves, remaining at the beginning of the Year of calculationcalculation Year, as determined by the Contractor quantified based on the methodology established by CNH. These shall remaining reserves should be consistent with the volume of Hydrocarbons to be recovered recover since the beginning of the Year of calculationcalculation Year, until whatever happens firstthe earlier to occur of between: (i) the natural termination of the this Contract or (ii) the Year in which it is estimated that Abandonment activities will be finalized completed in the Field. CAE = Remaining amount of the Costs of Abandonment at the beginning of the Year of calculationcalculation Year, estimated pursuant to the approved Development Plan, as it may be modified. Such remaining amount will be calculated as the difference between the global amount of the Costs of Abandonment estimated on the basis of the future Costs of Abandonment for the Field since the Year of calculation until the earlier to occur between: (i) the natural termination of the Contract Contract, or (ii) the estimated Year in which it is estimated that for the termination of the activities of Abandonment activities will be finalized in the Field, according to technical studies conducted by the Contractor and approved by CNH, minus CNH less the accumulated balance in the Abandonment Trust at the beginning of the Year of Calculation calculation year (AAAt-1). IAt = The Is the generated interest generated in the Trust in on the Year of calculationcalculation Year, using following the following next formula: IAt = rt * AAAt-1 Where: IAt=rt*AAA Where rt = Is the interest rate applicable to the balance in the Abandonment Trust. AAAt = Is the aggregate accumulated balance in the Abandonment Trust at the end of the Year of calculationcalculation Year, defined as follows: AAAt = AAAt-1+AAt+IAt-St-1. St-1 Where: St-1 = Is the total amount withdrawn retired from the Abandonment Trust during the calculation Year of calculation to finance the Abandonment activities performed in the same conducted that Year.