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/RR)*CAE-IAt] Where: AAt = Annual Contribution. PAEt = Estimated Production in the Field for the Year of calculation. RR = Remaining Reserves, remaining at the beginning of the calculation Year, as determined by the Contractor quantified based on the methodology established by CNH. These remaining reserves should be consistent with the volume of Hydrocarbons to recover since the beginning of the calculation Year, until the earlier to occur of between: (i) the natural termination of this Contract or (ii) the Year in which it is estimated that Abandonment activities will be completed in the Field. CAE = Remaining amount of the Costs of Abandonment at the beginning of the calculation 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 future Costs of Abandonment for the Field since the calculation Year until the earlier to occur between: (i) natural termination of the Contract, or (ii) the estimated Year for the termination of the activities of Abandonment according to technical studies conducted by the Contractor and approved by CNH less the accumulated balance in the Abandonment Trust at the beginning of the calculation year (AAAt-1). IAt = Is the generated interest in the Trust on the calculation Year, following the next formula: IAt=rt*AAA Where rt = Is the interest rate applicable to the balance in the Abandonment Trust. AAAt = Is the accumulated balance in the Abandonment Trust at the end of the calculation Year, defined as follows: AAAt = AAAt-1+AAt+IAt-St-1 Where: St-1 = Is the total amount retired from the Abandonment Trust during the calculation Year to finance the Abandonment activities 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/RR)*CAERRR)*CAE-IAt] Where: AAt = Annual Contribution. PAEt = Estimated Production in the Field for the Year of calculation. RR = Remaining Reserves, remaining Reserves at the beginning of the calculation YearYear of calculation, as determined by the Contractor quantified based on the methodology established by CNH. These remaining reserves should shall be consistent with the volume of Hydrocarbons to recover be recovered since the beginning of the calculation YearYear of calculation, until the earlier to occur of betweenwhatever happens first: (i) the natural termination of this the Contract or (ii) the Year in which it is estimated that Abandonment activities will be completed finalized in the Field. CAE = Remaining amount of the Costs of Abandonment at the beginning of the calculation YearYear 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 Year until the earlier to occur between: (i) the natural termination of the Contract, Contract or (ii) the Year in which it is estimated Year for that Abandonment activities will be finalized in the termination of the activities of Abandonment Field, according to technical studies conducted by the Contractor and approved by CNH less CNH, minus the accumulated balance in the Abandonment Trust at the beginning of the calculation year Year of Calculation (AAAt-1). IAt = Is the The interest generated interest in the Trust on in the calculation YearYear of calculation, using the following the next formula: IAt=rt*AAA Where IAt = rt * AAAt-1 Where: rt = Is the interest rate applicable to the balance in the Abandonment Trust. AAAt = Is the accumulated aggregate balance in the Abandonment Trust at the end of the calculation YearYear of calculation, defined as follows: AAAt = AAAt-1+AAt+IAt-St-1 St-1. Where: St-1 = Is the total amount retired withdrawn from the Abandonment Trust during the Year of calculation Year to finance the Abandonment activities conducted that 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/RR)*CAE-IAt] Where: AAt = Annual Contribution. PAEt = Estimated Production in the Field for the Year of calculation. RR = Remaining Reserves, remaining at the beginning of the calculation Year, as determined by the Contractor quantified based on the methodology established by CNH. These remaining reserves should be consistent with the volume of Hydrocarbons to recover since the beginning of the calculation Year, until the earlier to occur of between: (i) the natural termination of this Contract or (ii) the Year in which it is estimated that Abandonment activities will be completed in the Field. CAE = Remaining amount of the Costs of Abandonment at the beginning of the calculation 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 future Costs of Abandonment for the Field since the calculation Year until the earlier to occur between: (i) natural termination of the Contract, or (ii) the estimated Year for the termination of the activities of Abandonment according to technical studies conducted by the Contractor and approved by CNH less the IAt = accumulated balance in the Abandonment Trust at the beginning of the calculation year (AAAt-1). IAt = Is the generated interest in the Trust on the calculation Year, following the next formula: IAt=rt*AAA Where rt = Is the interest rate applicable to the balance in the Abandonment Trust. AAAt = Is the accumulated balance in the Abandonment Trust at the end of the calculation Year, defined as follows: AAAt = AAAt-1+AAt+IAt-St-1 Where: St-1 = Is the total amount retired from the Abandonment Trust during the calculation Year to finance the Abandonment activities 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 for Abandonment activities in the Contract Area shall be determined based on the following formula: AAt=Maximum[0,PAEtMaximum[0,(PAEt/RR)*CAE-IAt] Where: AAt = Annual Contribution. Contract No. CNH-R01-L01-A2/2015 PAEt = Estimated Production in the Field for the Year of calculation. RR = Remaining Reserves, remaining at the beginning of the calculation Year, as determined by the Contractor quantified based on the methodology established by CNH. These remaining reserves should be consistent with the volume of Hydrocarbons to recover since the beginning of the calculation Year, until the earlier to occur of between: (i) the natural termination of this Contract or (ii) the Year in which it is estimated that Abandonment activities will be completed in the Field. CAE = Remaining amount of the Costs of Abandonment at the beginning of the calculation 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 over the base of the future Costs of Abandonment for the Field since the calculation Year until the earlier to occur between: (i) natural termination of the Contract, or (ii) the estimated Year for the termination of the activities of Abandonment in the Field according to technical studies conducted by the Contractor and approved by CNH less CNH, minus the accumulated balance in the Abandonment Trust at the beginning of the calculation year (AAAt-1). IAt = Is the generated interest in the Trust on the calculation Year, following the next formula: IAt=rt*AAA rt*AAAt-1 Where rt = Is the interest rate applicable to the balance in the Abandonment Trust. Contract No. CNH-R01-L01-A2/2015 AAAt = Is the accumulated balance in the Abandonment Trust at the end of the calculation Year, defined as follows: AAAt = AAAt-1+AAt+IAt-St-1 Where: St-1 = Is the total amount retired from the Abandonment Trust during the calculation Year to finance the Abandonment activities conducted that Year.