Common use of Guarantees of Decommissioning and Abandonment Clause in Contracts

Guarantees of Decommissioning and Abandonment. The Contracted Party shall submit a guarantee of decommissioning and abandonment, through insurance, letter of credit, provisioning fund or other forms of collateral accepted by ANP. The amount of the field decommissioning and abandonment guarantee will be reviewed by request of ANP whenever there are events that may change the cost of abandonment and decommissioning operations. ANP may audit the accounting procedures used by the Consortium Members. If the guarantee of decommissioning and abandonment is formed through fund of provisioning, the balance found after the completion of all of the necessary decommissioning and abandonment operations of the field will be of exclusive right of the Federal Government. The presentation of the decommissioning and abandonment guarantee does not relieve the Consortium Members from holding all the operations necessary for the decommissioning and abandonment of the field. Goods to be Reverted The general regime of goods used by the Consortium Members in the implementation of operations purpose of this contract is the reversal of these goods to the Federal Government. In accordance with articles 29, line XV, and 32, §§ 1 and 2 of Law no. 12,351/2010, all and any movable and immovable property, main and accessories, members of the Area of the Contract, and that, at the sole discretion of the Contractor, after ANP is heard, are necessary to allow the continuity of the Operations or whose use is considered of public interest, will revert to the possession and ownership of the Contractor and the administration of ANP in the case of termination of this Contract or return of the plots of the Contract Area. The goods under contract for rent, lease or chartering used in the Operations, whose shelf life does not exceed the duration of the Contract will not be reverted to the possession and ownership of the Contractor or the administration of ANP. In relation to assets whose shelf life exceeds the duration of the Contract, the Contracted Party must include in the freight, rental or lease contract, a clause that would allow its sale or renewal with a future Contracted Party, aiming for ensuring the continuity of the Operations, as set out in paragraph 1.9. If there is sharing of goods for the operations of two or more fields in a same contract area, the Consortium Members may retain such assets until the closure of all operations.

Guarantees of Decommissioning and Abandonment. The Contracted Party shall submit a guarantee of decommissioning and abandonment, through insurance, letter of credit, provisioning fund or other forms of collateral accepted by ANP. The amount of the field decommissioning and abandonment guarantee will be reviewed by request of ANP whenever there are events that may change the cost of abandonment and decommissioning operations. ANP may audit the accounting procedures used by the Consortium Members. If the guarantee of decommissioning and abandonment is formed through fund of provisioning, the balance found after the completion of all of the necessary decommissioning and abandonment operations of the field will be of exclusive right of the Federal Government. The presentation of the decommissioning and abandonment guarantee does not relieve the Consortium Members from holding all the operations necessary for the decommissioning and abandonment of the field. Goods to be Reverted The general regime of goods used by the Consortium Members in the implementation of operations purpose of this contract is the reversal of these goods to the Federal Government. In accordance with articles 29, line XV, and 32, §§ 1 and 2 of Law no. 12,351/2010, all and any movable and immovable property, main and accessories, members of the Area of the Contract, and that, at the sole discretion of the Contractor, after ANP is heard, are necessary to allow the continuity of the Operations or whose use is considered of public interest, will revert to the possession and ownership of the Contractor and the administration of ANP in the case of termination of this Contract or return of the plots of the Contract Area. The goods under contract for rent, lease or chartering used in the Operations, whose shelf life does not exceed the duration of the Contract will not be reverted to the possession and ownership of the Contractor or the administration of ANP. In relation to assets whose shelf life exceeds the duration of the Contract, the Contracted Party must include in the freight, rental or lease contract, a clause that would allow its sale or renewal with a future Contracted Party, aiming for ensuring the continuity of the Operations, as set out in paragraph 1.914.9. If there is sharing of goods for the operations of two or more fields in a same contract area, the Consortium Members may retain such assets until the closure of all operations.

Guarantees of Decommissioning and Abandonment. The Contracted Party shall submit a Concessionaire must submit, when requested by ANP, guarantee of decommissioning and abandonment, through warranty insurance, letter of credit, fund for provisioning fund or other forms of collateral guarantees accepted by ANPthe Agency, in accordance with the approved Development Plan and the applicable legislation. The amount of the field decommissioning and abandonment guarantee will be reviewed by request of ANP whenever the Concessionaire or ANP, if there are events that may change the cost of abandonment and decommissioning operations. ANP may audit the accounting procedures used by the Consortium MembersConcessionaire. If the guarantee of decommissioning and abandonment is formed through fund of provisioning, the balance found after the completion of all of the necessary decommissioning and abandonment operations of the field will be of exclusive right of the Federal GovernmentConcessionaire. The presentation of the decommissioning and abandonment guarantee does not relieve relieved the Consortium Members Concessionaire from holding on its expenses and risk, all the operations necessary for the decommissioning and abandonment of the field. Goods to be Reverted The general regime Under the terms of goods used by the Consortium Members in the implementation of operations purpose of this contract is the reversal of these goods to the Federal Governmentarts. In accordance with articles 29, line XV, 28 and 32, §§ 1 and 2 43 (VI) of Law no. 12,351/20109,478/1997 and the applicable law, all and any movable and immovable property, main and accessories, members of the Area of the ContractConcession Area, and that, at the sole discretion of the Contractor, after ANP is heardANP, are necessary needed to allow enable the continuity of the Operations operations or whose use is considered of public interest, interest will revert accrue to the possession and ownership of the Contractor Federal Government and the administration of ANP in the case of termination of this Contract or the return of the plots of the Contract Area. The goods under contract for rent, lease or chartering used parcels in the Operations, whose shelf life does not exceed the duration of the Contract will not be reverted to the possession and ownership of the Contractor or the administration of ANP. In relation to assets whose shelf life exceeds the duration of the Contract, the Contracted Party must include in the freight, rental or lease contract, a clause that would allow its sale or renewal with a future Contracted Party, aiming for ensuring the continuity of the Operations, as set out in paragraph 1.9Concession Area. If there is sharing of goods for the operations of two or more fields in a same contract the concession area, the Consortium Members Concessionaire may retain such assets until the closure of all operations. The general scheme of goods used by the Concessionaire in the implementation of operations object of this contract is the reversal of these goods. Removal of Goods Not Reverted The goods not reverted in accordance with paragraph 18.10 5.10, including the not usable, should be removed and/or discarded by the Concessionaire, on its own expenses and risk, in accordance with the provisions of this Contract and the applicable legislation.