Common use of Management and Operations Clause in Contracts

Management and Operations. 15.1 The Operator shall prepare an annual work programme and budget for each Calendar Year during the term of this Agreement. Each such work programme and budget shall set out in reasonable details, the work to be carried out, facilities to be purchased or created, training and employment programme, establishment, salaries and wages, social welfare schemes to be undertaken, and an estimate of the Expenditure to be incurred. The Operator shall present such work programme and budget to the Government and the Working Interest Owners before the start of each Calendar Year and thereafter provide a quarterly update on the implementation of such work programme and budget. 15.2 The first work programme and budget shall cover one complete Calendar Year as well as the remaining part of the Calendar Year from the Effective Date. Thereafter, such annual work programmes and budgets shall be prepared and submitted to the Government and the Working Interest Owners at least ninety (90) Days prior to the first Day of each Calendar Year. 15.3 All important matters concerning Joint Operations hereunder shall be submitted for the approval to the Operating Committee composed of at least one representative of each Working Interest Owner and the Chairman nominated by the Operator. The representative of each Working Interest Owner shall have a vote equal to the percentage Working Interest owned by each Working Interest Owner. All decisions of the Operating Committee shall require a combined voting interest of more than (76, 81, 86% )for Zone III, II & I) for all operations except as stipulated in this Agreement. 15.4 The Operator shall conduct all Joint Operations in accordance with the Rules. In case the Rules do not provide for a specific operation, the normal Good Oilfield Practices shall be followed. The Operator shall set up an organization in Pakistan with sufficient competence and capacity to conduct and perform the Joint Operations in accordance with the provisions of the Rules and this Agreement. 15.5 All pipelines constructed by for the Working Interest Owners shall be operated under open access regime and to the extent that the throughput capacity of any pipeline that may be constructed for the purposes of Joint Operations, is not required to be utilized by the Working Interest Owners for the transportation of Petroleum produced for their account, such pipeline capacity may be used by the Government for any Petroleum purchased by the Government hereunder from the Working Interest Owners and by any other Petroleum company in Pakistan, in accordance with applicable regulations notified from time to time and each of them shall pay the Working Interest Owners for such use a tariffs as approved by the concerned regulator. Income so derived by a Working Interest Owner shall be assessed for income tax purposes on the same basis as its income from Petroleum produced for its account.

Management and Operations. 15.1 The Operator shall prepare an annual work programme and budget for each Calendar Year during the term of this Agreement. Each such work programme and budget shall set out in reasonable details, the work to be carried out, facilities to be purchased or created, training and employment programme, establishment, salaries and wages, social welfare schemes to be undertaken, and an estimate of the Expenditure to be incurred. The Operator shall present such work programme and budget to the Government DGPC and the Working Interest Owners before the start of each Calendar Year and thereafter provide a quarterly update on the implementation of such work programme and budget. 15.2 The first work programme and budget shall cover one complete Calendar Year as well as the remaining part of the Calendar Year from the Effective Date. Thereafter, such annual work programmes and budgets shall be prepared and submitted to the Government DGPC and the Working Interest Owners at least ninety (90) Days prior to the first Day of each Calendar Year. 15.3 All important matters concerning Joint Operations hereunder shall be submitted for the approval to the Operating Committee composed of at least one representative of each Working Interest Owner and the Chairman shall be nominated by the OperatorDGPC. The Chairman shall have no vote, or casting vote. The representative of each Working Interest Owner shall have a vote equal to the percentage Working Interest owned by each Working Interest Owner. All decisions of the Operating Committee shall require a combined voting interest of more than seventy percent (76, 81, 86% )for Zone III, II & I70%) for all operations except as stipulated in this Agreement. 15.4 The Operator shall conduct all Joint Operations in accordance with the Rules. In case the Rules do not provide for a specific operation, the normal Good International Oilfield Practices shall be followed. The Operator shall set up and maintain an organization in Pakistan with sufficient competence and capacity to conduct and perform the Joint Operations in accordance with the provisions of the Rules and this Agreement. 15.5 All pipelines constructed by for the Working Interest Owners shall be operated under open access regime and to the extent that the throughput capacity of any pipeline that may be constructed for the purposes of Joint Operations, is not required to be utilized by the Working Interest Owners for the transportation of Petroleum produced for their account, such pipeline capacity may be used by the Government for any Petroleum purchased by the Government hereunder from the Working Interest Owners and by any other Petroleum company in Pakistan, in accordance with applicable regulations notified from time to time and each of them shall pay the Working Interest Owners for such use a tariffs as approved by the concerned regulator. Income so derived by a Working Interest Owner shall be assessed for income tax purposes on the same basis as its income from Petroleum produced for its account.

Management and Operations. 15.1 The Operator shall prepare an annual work programme and budget for each Calendar Year during the term of this Agreement. Each such work programme and budget shall set out in reasonable details, the work to be carried out, facilities to be purchased or created, training and employment programme, establishment, salaries and wages, social welfare schemes to be undertaken, and an estimate of the Expenditure to be incurred. The Operator shall present such work programme and budget to the Government and the Working Interest Owners before the start of each Calendar Year and thereafter provide a quarterly update on the implementation of such work programme and budget. 15.2 The first work programme and budget shall cover one complete Calendar Year as well as the remaining part of the Calendar Year from the Effective Date. Thereafter, such annual work programmes and budgets shall be prepared and submitted to the Government and the Working Interest Owners at least ninety (90) Days prior to the first Day of each Calendar Year. 15.3 All important matters concerning Joint Operations hereunder shall be submitted for the approval to the Operating Committee composed of at least one representative of each Working Interest Owner and the Chairman nominated by the Operator. The representative of each Working Interest Owner shall have a vote equal to the percentage Working Interest owned by each Working Interest Owner. All decisions of the Operating Committee shall require a combined voting interest of more than seventy percent (76, 81, 86% )for Zone III, II & I70%) for all operations except as stipulated in this Agreement. 15.4 The Operator shall conduct all Joint Operations in accordance with the Rules. In case the Rules do not provide for a specific operation, the normal Good International Oilfield Practices shall be followed. The Operator shall set up an organization in Pakistan with sufficient competence and capacity to conduct and perform the Joint Operations in accordance with the provisions of the Rules and this Agreement. 15.5 All pipelines constructed by for the Working Interest Owners shall be operated under open access regime and to the extent that the throughput capacity of any pipeline that may be constructed for the purposes of Joint Operations, is not required to be utilized by the Working Interest Owners for the transportation of Petroleum produced for their account, such pipeline capacity may be used by the Government for any Petroleum purchased by the Government hereunder from the Working Interest Owners and by any other Petroleum company in Pakistan, in accordance with applicable regulations notified from time to time and each of them shall pay the Working Interest Owners for such use a tariffs as approved by the concerned regulator. Income so derived by a Working Interest Owner shall be assessed for income tax purposes on the same basis as its income from Petroleum produced for its account.

Management and Operations. 15.1 The Operator shall prepare an annual work programme and budget for each Calendar Year during the term of this Agreement. Each such work programme and budget shall set out in reasonable details, the work to be carried out, facilities to be purchased or created, training and employment programme, establishment, salaries and wages, social welfare schemes to be undertaken, and an estimate of the Expenditure to be incurred. The Operator shall present such work programme and budget to the Government and the Working Interest Owners Owner(s) before the start of each Calendar Year and thereafter provide a quarterly update on the implementation of such work programme and budget. 15.2 The first work programme and budget shall cover one complete Calendar Year as well as the remaining part of the Calendar Year from the Effective Date. Thereafter, such annual work programmes and budgets shall be prepared and submitted to the Government and the Working Interest Owners Owner(s) at least ninety (90) Days prior to the first Day of each Calendar Year. 15.3 All important matters concerning Joint Operations hereunder shall be submitted for the approval to the Operating Committee composed of at least one representative of each Working Interest Owner and the Chairman nominated by the Operator. The representative of each Working Interest Owner shall have a vote equal to the percentage Working Interest owned by each Working Interest Owner. All decisions of the Operating Committee shall require a combined voting interest of more than (76, 81, 86% )for Zone III, II & I) for all operations except as stipulated in this Agreement. 15.4 The Operator shall conduct all Joint Operations in accordance with the Rules. In case the Rules do not provide for a specific operation, the normal Good Oilfield Practices shall be followed. The Operator shall set up an organization in Pakistan with sufficient competence and capacity to conduct and perform the Joint Operations in accordance with the provisions of the Rules and this Agreement. 15.5 All pipelines constructed by or for the Working Interest Owners Owner(s) shall be operated under open access regime and to the extent that the throughput capacity of any pipeline that may be constructed for the purposes of Joint Operations, Operations is not required to be utilized by the Working Interest Owners Owner(s) for the transportation of Petroleum produced for their account, such pipeline capacity may be used by the Government for any Petroleum purchased by the Government hereunder from the Working Interest Owners Owner(s) and by any other Petroleum company in Pakistan, in accordance with applicable regulations notified from time to time and each of them shall pay the Working Interest Owners Owner(s) for such use a tariffs tariff as approved by the concerned regulator. Income so derived by a Working Interest Owner shall be assessed for income tax purposes on the same basis as its income from Petroleum produced for its account.