Common use of National Content Clause in Contracts

National Content. The Contractor shall have the following obligations: (a) During the Exploration and Appraisal Periods: (1) To comply with a minimum percentage of national content of three percent (3%) of the value of the items indicated in the Methodology which have been purchased or contracted for the Petroleum Activities during the Initial Exploration Period, which shall increase to six percent (6%) for the First Additional Exploration Period and to eight (8%) for the Second Additional Exploration Period, in case they are granted in terms of Articles 4.3 and 4.4 of this Contract. In case of the Appraisal Period, the same minimum percentage of national content for the Exploration Period in which the Discovery for appraisal is declared shall apply. Compliance with the minimum percentages of national content shall be verified by the Ministry of Economy upon termination of the Initial Exploration Period, the First Additional Exploration Period, the Second Additional Exploration Period and the Appraisal Period, as it corresponds, in terms of the Methodology and the Applicable Laws. (2) To include in its proposed Exploration Plan and Appraisal Plan a compliance program for the above-referenced minimum percentage of national content, as well as the technology transfer program, including the applicable periods and stages, which shall be approved by the CNH prior opinion from the Ministry of Economy in terms of Articles 4 and 5 of this Contract. Once approved, the programs shall form an integral part of this Contract. The obligations regarding national content will commence upon approval of the Exploration Plan.