Minimum Work Program Clause Samples
The Minimum Work Program clause sets out the specific activities or tasks that a party, typically in an oil, gas, or mining agreement, is obligated to complete within a defined period. This may include requirements such as conducting seismic surveys, drilling a certain number of wells, or investing a minimum amount in exploration or development. By clearly outlining these obligations, the clause ensures that the project progresses as intended and prevents parties from holding rights without making meaningful progress, thereby protecting the interests of the resource owner or regulator.
Minimum Work Program. During the Exploration Period, the Contractor undertakes to carry out the following minimum work program:
3.1.1 During the First Exploration Sub-Period, the Contractor must:
(a) obtain, under license from the Ministry, all existing 2D and 3D seismic data and Well data at a purchase price of [insert amount] Dollars ($[insert amount]) and obtain from GESeis all existing 3D seismic and Seabed Logging (SBL) data at a purchase price of [insert amount] Dollars ($[insert amount]), and the Contractor shall undertake to interpret such information;
(b) reprocess [insert number] kilometers of existing 2D seismic data and [insert number] kilometers of 3D seismic data; and
(c) acquire [insert number] kilometers of new 3D seismic data. All costs of data acquisition (including escalation fees) shall be cost recoverable. The minimum expenditure for this period shall be [insert amount] Dollars ($[insert amount]).
3.1.2 During the Second Exploration Sub-Period, the Contractor must drill a minimum of [insert number] Exploration Well[s] to a minimum depth of [insert number] meters below the seabed. The minimum expenditure for this period shall be [insert amount] Dollars ($[insert amount]).
3.1.3 If the Contractor elects to enter the First Extension Period, the Contractor must drill a minimum of [insert number] Exploration Well[s] to a minimum depth of [insert number] meters below the seabed. The minimum expenditure for this period shall be [insert amount] Dollars ($[insert amount]).
3.1.4 If the Contractor elects to enter the Second Extension Period, the Contractor must drill a minimum of [insert number] Exploration Well[s] to a minimum depth of [insert number] meters below the seabed. The minimum expenditure for this period shall be [insert amount] Dollars ($[insert amount]). However, if the Contractor has drilled more than the minimum number of Exploration ▇▇▇▇▇ required of it under any of Articles 3.1.1, 3.1.2 or 3.1.3, then its obligation under this Article 3.1.4 shall be reduced to [insert number] Exploration Well[s].
Minimum Work Program. It mean the Work Units that the Contractor is obliged to perform in each stage of the Exploration Phase, in accordance with Article 12 and Appendix D: Minimum Work Program.
Minimum Work Program. During the Exploration Period, the Contractor undertakes to carry out the following Minimum Work Program:
3.1.1 During the First Exploration Sub-Period, the Contractor must:
(a) acquire, process, and interpret 2,250 square kilometers of new 3D seismic data; andacquire all existing data packages (both seismic and well) over the Area for $1,076,000. All costs of data acquisition shall be cost recoverable.
(b) The minimum expenditure for this Sub-Period shall be seven million Dollars ($7,000,000).
3.1.2 During the Second Exploration Sub-Period, the Contractor must drill a minimum of one (1) Exploration Well to a minimum depth of the deepest target interval in the approved well program. The minimum expenditure for this period shall be thirty million Dollars ($30,000,000).
3.1.3 If the Contractor elects to enter the First Extension Period, the Contractor must perform technical work on geological and geophysical studies and surveys. The minimum expenditure for this period shall be seven hundred thousand Dollars ($700,000).
3.1.4 If the Contractor elects to enter the Second Extension Period, the Contractor must drill a minimum of one (1) Exploration Well to a minimum depth of the deepest target interval in the approved well program. The minimum expenditure for this period shall be thirty million Dollars ($30,000,000).
3.1.5 However, if the Contractor has performed work exceeding the Minimum Work Program required of it under any of Articles 3.1.1, 3.1.2 or 3.1.3, then the excess work, including ▇▇▇▇▇, is carried over to the next Sub-Period or Extension Period, and shall be deducted from the Minimum Work Program and the minimum expenditure for such next Sub-Period or Extension Period.
3.1.6 If the Contractor fulfills the Minimum Work Program (as set out in Articles 3.1.1, 3.1.2, 3.1.3, and 3.1.4) as applicable for each such Sub-Period and Extension Period, then the Contractor shall be deemed to have satisfied the minimum expenditure for each such Sub-Period and Extension Period, as applicable.
Minimum Work Program. During the Exploration Period, the Contractor commits itself to executing the following program of minimum work: First Exploration Sub- Period: _ _ months 2D seismic acquisition Amount (km) Cost ($) 3D seismic acquisition Amount (sq km) Cost ($) Exploration well(s) Number Depth (mss) Stratigraphic Target Cost ($ per well) Other Studies / Data (specify) Contingent Work Total Cost First Exploration Sub-Period …$MM Second Exploration Sub- Period _ _ months 2D seismic acquisition Amount (km) Cost ($) 3D seismic acquisition Amount (sq km) Cost ($) Exploration well(s) Number Depth (mss) Stratigraphic Target Cost ($ per well) Other Studies / Data (specify) Contingent Work Total Cost Second Exploration Sub-Period …$MM
3.1.1 If the Contractor completely fulfils all the obligations of the First Sub-Period, then it may, at its sole discretion, opt to enter into a Second Exploration Sub-Period.
3.1.2 If the Contractor has drilled more than the minimum number of Exploratory ▇▇▇▇▇ demanded in the minimum work Programme, then the surplus that exceeds the obligatory amount at the end of the period in question will be transferred and considered part of the obligations of the next guaranteed period(s).
Minimum Work Program. 75 AGREEMENT, dated December 17, 1998 between NINOTSMINDA OIL COMPANY, a company organized and existing under the laws of Cyprus (the "Company"), and INTERNATIONAL FINANCE CORPORATION, an international organization established by Articles of Agreement among its member countries ("IFC").
Minimum Work Program. The Minimum Work Program to be implemented during the Initial Exploration Period shall include at a minimum the following activities with the minimum values indicated:2 [To be inserted for each Contract Area] 2 The Minimum Work Program shall include any additional investment commitment offered by the Contractor in the Bidding Process.
Minimum Work Program. During the Exploration Period, the Contractor commits itself to executing the following program of minimum work:
3.1.1 During the First Exploration Sub-Period, the Contractor must:
(a) acquire, process, and interpret three thousand (3000) square kilometers of new 3D seismic information; and
(b) buy all existing seismic data to combine with the new data acquired to generate models of the deposit, and shall pay for such data as follows:
(i) $750,000 (seven hundred and fifty thousand US dollars) on signature of this Contract
(ii) $1,000,000 (one million US dollars) on completion of any farm-in by the Contractor to this Contract; and
(iii) $1,798,355 (one million seven hundred and ninety eight thousand three hundred and fifty five US dollars) on date of approval to entry into the Second Sub-period,
Minimum Work Program. During the Exploration Period, the Contractor commits itself to executing the following program of minimum work: