Common use of GOVERNMENT PARTICIPATION Clause in Contracts

GOVERNMENT PARTICIPATION. Draft Production Sharing Contract Blocks L1B Ministry of Energy Page 39 (1) The Government may elect to participate in the petroleum operations in any development area and acquire an interest of up twenty per cent (20%) (hereinafter referred to as "Participating Interest") of the total interest in that development area. The Government may participate either directly or through an appointee (2) If the Government exercises its right to participate in a Development Area, the Government and the Contractor shall enter into either a Participation Agreement of an amendment and novation of the Joint Operating Agreement, to add the Government or its Appointee as a party to the Joint Operating Agreement within three (3) months after notice to the Contractor under sub- clause 28(1). (3) The Government shall, in exercise of its right to participate in a Development Area: (a) Have a right to a vote in proportion to its Participating Interest with respect to all decisions taken under this Contract and either the Participation Agreement or Joint Operating Agreement as appropriate; (b) Own and separately take and dispose of its Participating Interest share in the Petroleum produced and saved to which the Contractor is entitled under this Contract, corresponding to its Participating Interest in that Development Area; (c) Assume its share of Petroleum Costs incurred in respect of that Development Area, from the Effective Date of its participation as defined in sub-clause 28(3), pro-rata to its Participating Interest; (d) Own a Participating Interest share in all assets acquired for Petroleum Operations in or related to the Development Area; (4) The Government shall reimburse the Contractor, without interest, pro-rata to the Government Participating Interest, its share of all costs, expenses and expenditure incurred in respect of the Development Area from the date the Development Plan for that Development Area has been adopted to the date the Government serves notice pursuant to sub-clause 28(3) exercises its right to participate in that Development Area. This reimbursement shall be made within three (3) months after the Government serves notice pursuant to sub-clause 28(3).

GOVERNMENT PARTICIPATION. Draft Production Sharing Contract Blocks L1B Ministry of Energy Page 39 (1) The Government may elect to participate in the petroleum operations in any development Development area and acquire an interest of up twenty per cent (20%) (hereinafter referred to as "Participating Interest") of the total interest in that development area. The Government may participate either directly or through an appointee (2) If the Government exercises its right to participate in a Development Area, the Government and the Contractor shall enter into either a Participation Agreement of an amendment and novation of the Joint Operating Agreement, to add the Government or its Appointee as a party to the Joint Operating Agreement within three (3) months after notice to the Contractor under sub- clause 28(1). (3) The Government shall, in exercise of its right to participate in a Development Area: (a) Have a right to a vote in proportion to its Participating Interest with respect to all decisions taken under this Contract and either the Participation Agreement or Joint Operating Agreement as appropriate; (b) Own and separately take and dispose of its Participating Interest share in the Petroleum produced and saved to which the Contractor is entitled under this Contract, corresponding to its Participating Interest in that Development Area; (c) Assume its share of Petroleum Costs incurred in respect of that Development Area, from the Effective Date of its participation as defined in sub-clause 28(3), pro-rata to its Participating Interest;; Draft Production Sharing Contract Block L27 Ministry of Energy Page 40 (d) Own a Participating Interest share in all assets acquired for Petroleum Operations in or related to the Development Area; (4) The Government shall reimburse the Contractor, without interest, pro-rata to the Government Participating Interest, its share of all costs, expenses and expenditure incurred in respect of the Development Area from the date the Development Plan for that Development Area has been adopted to the date the Government serves notice pursuant to sub-clause 28(3) exercises its right to participate in that Development Area. This reimbursement shall be made within three (3) months after the Government serves notice pursuant to sub-clause 28(3).

GOVERNMENT PARTICIPATION. Draft Production Sharing Contract Blocks L1B Ministry of Energy Page 39 (1) The Government may elect to participate in the petroleum operations in any development Development area and acquire an interest of up twenty per cent (20%) (hereinafter referred to as "Participating Interest") of the total interest in that development area. The Government may participate either directly or through an appointee (2) If the Government exercises its right to participate in a Development Area, the Government and the Contractor shall enter into either a Participation Agreement of an amendment and novation of the Joint Operating Agreement, to add the Government or its Appointee as a party to the Joint Operating Agreement within three (3) months after notice to the Contractor under sub- clause 28(1). (3) The Government shall, in exercise of its right to participate in a Development AreaArea : (a) Have a right to a vote in proportion to its Participating Interest with respect to all decisions taken under this Contract and either the Participation Agreement or Joint Operating Agreement as appropriate; (b) Own and separately take and dispose of its Participating Interest share in the Petroleum produced and saved to which the Contractor is entitled under this Contract, corresponding to its Participating Interest in that Development Area; (c) Assume its share of Petroleum Costs incurred in respect of that Development Area, from the Effective Date of its participation as defined in sub-clause 28(3), pro-rata to its Participating Interest; (d) Own a Participating Interest share in all assets acquired for Petroleum Operations in or related to the Development Area;; Draft Production Sharing Contract Block L28 Ministry of Energy Page 40 (4) The Government shall reimburse the Contractor, without interest, pro-rata to the Government Participating Interest, its share of all costs, expenses and expenditure incurred in respect of the Development Area from the date the Development Plan for that Development Area has been adopted to the date the Government serves notice pursuant to sub-clause 28(3) exercises its right to participate in that Development Area. This reimbursement shall be made within three (3) months after the Government serves notice pursuant to sub-clause 28(3).

GOVERNMENT PARTICIPATION. Draft Production Sharing Contract Blocks L1B Ministry of Energy Page 39 (1) The Government may elect to participate in the petroleum operations in any development area and acquire an interest of up twenty per cent (20%) (hereinafter referred to as "Participating Interest") of the total interest in that development area. The Government may participate either directly or through an appointee (2) If the Government exercises its right to participate in a Development Area, the Government and the Contractor shall enter into either a Participation Agreement of an amendment and novation of the Joint Operating Agreement, to add the Government or its Appointee as a party to the Joint Operating Agreement within three (3) months after notice to the Contractor under sub- sub-clause 28(1). (3) The Government shall, in exercise of its right to participate in a Development Area: (a) Have a right to a vote in proportion to its Participating Interest with respect to all decisions taken under this Contract and either the Participation Agreement or Joint Operating Agreement as appropriate; (b) Own and separately take and dispose of its Participating Interest share in the Petroleum produced and saved to which the Contractor is entitled under this Contract, corresponding to its Participating Interest in that Development Area; (c) Assume its share of Petroleum Costs incurred in respect of that Development Area, from the Effective Date of its participation as defined in sub-clause 28(3), pro-rata to its Participating Interest; (d) Own a Participating Interest share in all assets acquired for Petroleum Operations in or related to the Development Area;; Production Sharing Contract Block L16 Ministry of Energy Page 40 (4) The Government shall reimburse the Contractor, without interest, pro-rata to the Government Participating Interest, its share of all costs, expenses and expenditure incurred in respect of the Development Area from the date the Development Plan for that Development Area has been adopted to the date the Government serves notice pursuant to sub-clause 28(3) exercises its right to participate in that Development Area. This reimbursement shall be made within three (3) months after the Government serves notice pursuant to sub-clause 28(3).

GOVERNMENT PARTICIPATION. Draft Production Sharing Contract Blocks L1B Ministry of Energy Page 39 (1) The Government will have a ten percent (10%) carried participating interest upto declaration of commerciality and thereafter may elect to participate acquire an additional ten percent (10%) interest in the petroleum operations in any development area and acquire an interest of up PSC thus bringing total government participation to twenty per cent percent (20%) (hereinafter referred to as "Participating Interest") of the total interest in that development area). The Government may participate either directly or through an appointee (2) If the Government exercises its right to participate in a Development Area, the Government and the Contractor shall enter into either a Participation Agreement of an amendment and novation of the Joint Operating Agreement, to add the Government or its Appointee as a party to the Joint Operating Agreement within three (3) months after notice to the Contractor under sub- sub-clause 28(1). (3) The Government shall, in exercise of its right to participate in a Development Area: (a) Have a right to a vote in proportion to its Participating Interest with respect to all decisions taken under this Contract and either the Participation Agreement or Joint Operating Agreement as appropriate; (b) Own and separately take and dispose of its Participating Interest share in the Petroleum produced and saved to which the Contractor is entitled under this Contract, corresponding to its Participating Interest in that Development Area; (c) Assume its share of Petroleum Costs incurred in respect of that Development Area, from the Effective Date of its participation as defined in sub-clause 28(3), pro-rata to its Participating Interest; (d) Own a Participating Interest share in all assets acquired for Petroleum Operations in or related to the Development Area;; Production Sharing Contract Block 11A Ministry of Energy Page 39 (4) The Government shall reimburse the Contractor, without interest, pro-rata to the Government Participating Interest, its share of all costs, expenses and expenditure incurred in respect of the Development Area from the date the Development Plan for that Development Area has been adopted to the date the Government serves notice pursuant to sub-clause 28(3) exercises its right to participate in that Development Area. This reimbursement shall be made within three (3) months after the Government serves notice pursuant to sub-clause 28(3).

GOVERNMENT PARTICIPATION. Draft Production Sharing Contract Blocks L1B Ministry of Energy Page 39 (1) The Government may elect to participate in the petroleum operations in any development Development area and acquire an interest of up twenty per cent (20%) (hereinafter referred to as "Participating Interest") of the total interest in that development area. The Government may participate either directly or through an appointee (2) If the Government exercises its right to participate in a Development Area, the Government and the Contractor shall enter into either a Participation Agreement of an amendment and novation of the Joint Operating Agreement, to add the Government or its Appointee as a party to the Joint Operating Agreement within three (3) months after notice to the Contractor under sub- sub-clause 28(1). (3) The Government shall, in exercise of its right to participate in a Development Area: (a) Have a right to a vote in proportion to its Participating Interest with respect to all decisions taken under this Contract and either the Participation Agreement or Joint Operating Agreement as appropriate; (b) Own and separately take and dispose of its Participating Interest share in the Petroleum produced and saved to which the Contractor is entitled under this Contract, corresponding to its Participating Interest in that Development Area; (c) Assume its share of Petroleum Costs incurred in respect of that Development Area, from the Effective Date of its participation as defined in sub-clause 28(3), pro-rata to its Participating Interest; (d) Own a Participating Interest share in all assets acquired for Petroleum Operations in or related to the Development Area; (4) The Government shall reimburse the Contractor, without interest, pro-rata to the Government Participating Interest, its share of all costs, expenses and expenditure incurred in respect of the Development Area from the date the Development Plan for that Development Area has been adopted to the date the Government serves notice pursuant to sub-clause 28(3) exercises its right to participate in that Development Area. This reimbursement shall be made within three (3) months after the Government serves notice pursuant to sub-clause 28(3).

GOVERNMENT PARTICIPATION. Draft Production Sharing Contract Blocks L1B Ministry of Energy Page 39 (1) The Government may elect to participate in the petroleum operations in any development area and acquire an interest of up twenty per cent (20%) (hereinafter referred to as "Participating Interest") of the total interest in that development area. The Government may participate either directly or through an appointee (2) If the Government exercises its right to participate in a Development Area, the Government and the Contractor shall enter into either a Participation Agreement of an amendment and novation of the Joint Operating Agreement, to add the Government or its Appointee as a party to the Joint Operating Agreement within three (3) months after notice to the Contractor under sub- clause 28(1). (3) The Government shall, in exercise of its right to participate in a Development Area: (a) Have a right to a vote in proportion to its Participating Interest with respect to all decisions taken under this Contract and either the Participation Agreement or Joint Operating Agreement as appropriate; (b) Own and separately take and dispose of its Participating Interest share in the Petroleum produced and saved to which the Contractor is entitled under this Contract, corresponding to its Participating Interest in that Development Area; (c) Assume its share of Petroleum Costs incurred in respect of that Development Area, from the Effective Date of its participation as defined in sub-clause 28(3), pro-rata to its Participating Interest; (d) Own a Participating Interest share in all assets acquired for Petroleum Operations in or related to the Development Area;; Production Sharing Contract Block L16 Ministry of Energy Page 40 (4) The Government shall reimburse the Contractor, without interest, pro-rata to the Government Participating Interest, its share of all costs, expenses and expenditure incurred in respect of the Development Area from the date the Development Plan for that Development Area has been adopted to the date the Government serves notice pursuant to sub-clause 28(3) exercises its right to participate in that Development Area. This reimbursement shall be made within three (3) months after the Government serves notice pursuant to sub-clause 28(3).

GOVERNMENT PARTICIPATION. Draft Production Sharing Contract Blocks L1B Ministry of Energy Page 39 (1) The Government may elect to participate in the petroleum operations in any development Development area and acquire an interest of up twenty per cent (20%) (hereinafter referred to as "Participating Interest") of the total interest in that development area. The Government may participate either directly or through an appointee (2) If the Government exercises its right to participate in a Development Area, the Government and the Contractor shall enter into either a Participation Agreement of an amendment and novation of the Joint Operating Agreement, to add the Government or its Appointee as a party to the Joint Operating Agreement within three (3) months after notice to the Contractor under sub- sub-clause 28(1). (3) The Government shall, in exercise of its right to participate in a Development AreaArea : (a) Have a right to a vote in proportion to its Participating Interest with respect to all decisions taken under this Contract and either the Participation Agreement or Joint Operating Agreement as appropriate; (b) Own and separately take and dispose of its Participating Interest share in the Petroleum produced and saved to which the Contractor is entitled under this Contract, corresponding to its Participating Interest in that Development Area; (c) Assume its share of Petroleum Costs incurred in respect of that Development Area, from the Effective Date of its participation as defined in sub-clause 28(3), pro-rata to its Participating Interest; (d) Own a Participating Interest share in all assets acquired for Petroleum Operations in or related to the Development Area; (4) The Government shall reimburse the Contractor, without interest, pro-rata to the Government Participating Interest, its share of all costs, expenses and expenditure incurred in respect of the Development Area from the date the Development Plan for that Development Area has been adopted to the date the Government serves notice pursuant to sub-clause 28(3) exercises its right to participate in that Development Area. This reimbursement shall be made within three (3) months after the Government serves notice pursuant to sub-clause 28(3).