Common use of Natural Gas Clause in Contracts

Natural Gas. 30.1 Contractor will have priority right to use freely and without charge, in order to make “gas lift” or reinjection, the quantities of Natural Gas needed by it to improve the recovery of the reserves of the Crude Oil from the fields operated by it in the Delimited Zone. To allow for this use, Contractor will provide to the Administration all information for a detailed examination of the data of the deposit discovered, as well as those explaining the needs of gas of the fields concerned. If, for the same reasons, Contractor wishes to use certain quantities of Natural Gas for the fields operated by it outside the Delimited Zone, it must send a request in this sense to the State. If the State approves the request, the Parties will meet to agree on the modalities of this use. 30.2 The Parties recognize that the contractual conditions necessary to assure the marketing of a discovery of Natural Gas are directly related to the types of development and outlets considered, which parameters are not known today and, therefore, it is not possible to establish the applicable contractual conditions in this Contract. However, if, after making appropriate studies and after agreement with the Administration, Contractor considers that a discovery of Natural Gas, after meeting the priority needs described in Article 30.1 above, may give rise to commercial exploitation, the Parties agree: i. to discuss as soon as possible to define the legal, financial and tax conditions for the quick development of this discovery under satisfactory economic conditions allowing Contractor to obtain a profit on its investment as generally required for this type of project in the oil industry. To do so, the Administration may allow Contractor specific conditions concerning especially the recovery of the Oil Costs related to Natural Gas, production sharing and tax modalities. ii. in order to evaluate the marketability of a discovery of Natural Gas, Contractor will receive at its request an extension of the ongoing exploration period for the time necessary to carry out the evaluation work and for a joint evaluation by the parties of the possible outlets for such discovery, both in the local market and for export, as well as the means necessary for marketing, especially concerning the incentives mentioned in paragraph (i) above. This extension, which may not, however, exceed ten years, will be granted by the Departments Responsible for Hydrocarbons free of charge, without application of the provisions in Article 28.3 above. iii. if Contractor does not declare the commercial nature of the discovery of natural gas after this period, Contractor will be reputed to have waived these rights on natural gas. iv. if the parties decide that the discovery of natural gas is commercially exploitable, an exclusive exploitation authorization for gas will be granted to Contractor for the time necessary to exploit the deposit of natural gas, taking into account the commitments assumed by Contractor with third parties, within the limit of thirty years from the first sale corresponding to the commercial production of this discovery. If, after the end of the period of thirty year, the commercial exploitation of the exploitation zone is still possible, the exclusive exploitation authorization of gas, may be renewed for the term indicated in the previous paragraph and under the conditions indicated in Article 18.1 above, mutatis mutandis, 30.3 If the discovery is not declared commercial, the state undertakes, in case of subsequent projects for the development of the deposit by another contractor, to give Contractor preferred right under identical conditions. Contractor will have a term of six months to accept or refuse the competing proposal as of the receipt of the file sent to it by the state. This file must include the entire competing proposal as well as all data of all nature used in the preparation of the offer. This preferred right will be forfeited by Contractor ten years after the known commercial character of the discovery is entered in a report signed by those parties. 30.4 Whenever necessary to establish an equivalence between the natural gas and the crude oil, particularly for the application of the withdrawal modalities of quantities of hydrocarbon for the recovery of oil costs here defined in Article 24, sharing of the remaining production defined in Article 25 and to determine the amount of the bonuses defined in Article 28.2, it is admitted that on hundred sixty-five cubic meters of natural gas are equal to one barrel of crude oil. This equivalence must be specified by Mutual consent. 30.5 The associated not marketed quantities of natural gas, excluding those used in the oil operations, must serve to improve the recovery rate of crude oil by reinjection, as part of the implementation of assisted recovery methods pursuant to Article 21.4. Torch burning must limited to a strict minimum. Contractor must comply with current regulations and the recommendations of the administration in the matter. In addition, if the state wants to dispose of the associated natural gas produced in the exploitation zone and not marketed or used by Contractor under the condition defined above, the parties will establish by mutual consent all additional technical measures that may be necessary to allow for the delivery and use of this natural gas.

Natural Gas. 30.1 21.1 Subject to Article 21.2, the Indian domestic market shall have the first call on the utilisation of Natural Gas discovered pursuant to Petroleum Operations and produced from any Field. Accordingly, any proposal by the Contractor will relating to Discovery and production of Natural Gas from a Field shall be made in the context of the Government's policy for the utilisation of Natural Gas and shall take into account the objectives of the Government to develop its resources in the most efficient manner and to promote conservation measures. 21.2 Contractor shall have priority the right to use freely Natural Gas produced from a Field for the purpose of Petroleum Operations including reinjection for pressure maintenance in the Oil Fields, gas lifting and without chargepower generation. 21.3 For the purpose of sales to the domestic market pursuant to this Article 21, the Delivery Point shall, unless otherwise provided herein or agreed, be the inlet flange of the facilities upstream of any facilities and operations established to extract or process products from the said Natural Gas. 21.4 Associated Natural Gas (ANG) 21.4.1 In the event that a Discovery of Crude Oil contains ANG, Contractor shall declare in order its declaration of the said Discovery as a Commercial Discovery as specified in Article 9, whether (and by what amount) the estimated production of ANG is anticipated to make “gas lift” or reinjection, exceed the quantities of ANG which will be used in accordance with Article 21.2 (such excess being hereinafter referred to as "the Excess ANG”). In such an event the Contractor shall indicate whether, on the basis of the available data and information, it has reasonable grounds for believing that the Excess ANG could by itself be commercially exploited in accordance with the terms of this Contract and whether the Contractor intends to so exploit the excess ANG. 21.4.2 Based on the principle of full utilisation and minimum flaring of ANG, a proposed Development Plan shall, to the extent practicable. , include a plan for utilisation of the ANG including, estimated quantities to be flared, reinjected, and to be used for Petroleum Operations; and, if the Contractor proposes to commercially exploit the Excess ANG for sale in the domestic market or elsewhere. the proposed plans for such exploitation. 21.4.3 The Contractor shall first offer such Excess ANG for sale to the Government (or its nominee) in writing, in accordance with the terms of this Contract. On receipt of such offer, the Government (or its nominee) shall, within six (6) months of the date of receipt thereof, notify the contractor, in writing, whether or not it wishes to exercise its option to purchase the Excess ANG. 21.4.4 If the Government exercises its option to purchase the Excess ANG as provided in Article 21.4.4. (a) The Government shall indicate in the notice exercising the option, the date it can commence purchase of the Excess ANG, which date shall not be later than the date the facilities for delivering Excess ANG are commissioned. (b) The Contractor and the Government (or its nominee) shall promptly, commence negotiation of a Gas sales agreement and other technical and commercial arrangements required to develop such Natural Gas. 21.4.5 If the Government does not exercise its option to purchase the Excess ANG as provided in Article 21.4.3 and Contractor does not enter into a Gas sales agreement for the total amount of Excess ANG with any buyer as provided in Article 21.4.3, the Government shall be entitled to take and utilize such Excess ANG, at its own cost and expense, without impeding the production of Crude Oil and without affecting the shares of Crude Oil allocable to the Parties under the other provisions of this Contract. 21.4.6 If the Government elects to take the Excess ANG as provided in Article 21.4.6. (a) the Contractor shall deliver such excess ANG to the Government at the downstream flange of the Natural Gas needed by it to improve processing facilities, or, if there are no Natural Gas processing facilities, the recovery downstream flange of the reserves Gas/oil separation facilities; (b) the Contractor shall, based on sound petroleum engineering practices, install such facilities as would facilitate, in so far as practicable, uninterrupted delivery of such Excess ANG to the Government; (c) the cost associated with all facilities installed pursuant to paragraph (b) above shall be borne by the Government (or its nominee) and shall not be charged to the Contract Area from which the Excess ANG is being produced; (d) the Government shall bear all costs including gathering, treating, processing and transporting costs beyond the downstream flange of the Crude Oil Natural Gas processing facilities, or, if there are no Natural Gas processing facilities the downstream flange of the Gas/oil separation facilities; (e) the delivery of such Excess ANG shall be subject to procedures to be agreed between the Government or its nominee and the Contractor, prior to such delivery, such procedures to include matters relating to timing of off-­take of such Excess ANG. 21.4.7 If at any time, any Excess ANG is not utilized by Government or Contractor pursuant to this Article 21, the Contractor can flare such excess ANG, where such flaring is approved in the Development Plan by Management Committee or show to the satisfaction of Management Committee and Government that reinjection is inadvisable and/or impracticable. 21.5 Non Associated Natural Gas (NANG) 21.5.1 In the event of a Discovery of NANG, the Contractor shall promptly report such Discovery to the Management Committee and the provisions of Articles 9.1 and 9.2 shall apply. The remaining provisions of Article 9 would apply to the discovery and development of NANG only, insofar as they are not inconsistent with the provisions of Articles 21. 21.5.2 If, pursuant to Article 9.1(c), the Contractor notifies the Management Committee that the Discovery is of potential commercial interest, the Contractor shall submit to the Management Committee, within one (1) Calendar Year from the fields operated date of notification of the above said Discovery, the proposed Appraisal Programme, designed to determine (i) whether such Discovery is a Commercial Discovery and (ii) the boundaries of the Development Area. 21.5.3 The proposed Appraisal Programme referred to in Article 21.5.2 shall be reviewed by the Management Committee within sixty (60) days of its submission by the Contractor. The Management Committee may request any additional information as it reasonably requires within twenty one (21) days of the submission by Contractor of the said Appraisal Programme. Contractor shall furnish such information within twenty-one (21) days of the receipt of request from Management Committee for such information. Following review of the Appraisal Programme and related budget and any revisions agreed by the Contractor, the Contractor shall proceed to implement the said Appraisal Programme. During this appraisal period, Contractor shall endeavour to complete gas sales agreements whether with the Government or other buyers. 21.5.4 If on the basis of the results of the Appraisal Programme, the Contractor is of the opinion that NANG has been discovered in commercial quantities: (a) It shall submit to the Management Committee, as soon as practicable but not later than sixty (60) months from the date of notification of the aforementioned Discovery, the notification for declaration of the Discovery as a Commercial Discovery and approval of the proposed Development Area. Such Development Area may either be a new Development Area or a modification of an existing Development Area so as to encompass the proposed Commercial Discovery within its boundaries based on the report submitted. Such notification shall take into account the Government's policies on gas utilisation and propose alternative options (if any) for use or consumption of the NANG and be supported by, inter alia technical and economic data, evaluations, interpretations and analyses of such data, and feasibility studies relating to the Discovery prepared by or on behalf of the Contractor and other relevant information. If no notification of Commercial Discovery is submitted to the Management Committee by the Contractor within sixty (60) months from the date of notification of the said Discovery, the Contractor shall relinquish its rights to develop such Discovery and the area relating to such Discovery shall be excluded from the Contract Area. (b) Where the Contractor has submitted notification for the declaration of a Discovery as a Commercial Discovery, the Management Committee shall review the Contractor's proposal for the commercial utilisation of the NANG in the Delimited Zone. To allow for this usedomestic market or elsewhere and in the context of Government's policy on gas utilisation and the chain of activities required to bring the NANG from the Delivery Point to potential end consumers in the domestic market or elsewhere. (c) The Contractor shall within twelve (12) months of the declaration of the Discovery as a Commercial Discovery, Contractor will provide submit a Development Plan to the Administration Management Committee for its approval. Such Development Plan shall be supported by all relevant information for a detailed examination of including, inter alia, the data of the deposit discovered, as well as those explaining the needs of gas of the fields concerned. If, for the same reasons, Contractor wishes to use certain quantities of Natural Gas for the fields operated by it outside the Delimited Zone, it must send a request information required in this sense to the State. Article 9.7. (d) If the State approves the request, the Parties will meet Management Committee is unable to agree on the modalities Development Plan within one hundred eighty (180) days of this usesubmission, the Contractor shall be entitled to submit such Development Plan directly to the Government for approval. Government shall respond to the said submission within sixty (60) days of its receipt. If the Government disapproves the Contractor's proposed plan or plans, the Government shall state in writing the reasons for such disapproval and the Contractor shall have the right to resubmit the said proposal. 30.2 The Parties recognize that (e) When the contractual conditions necessary to assure Management Committee or the marketing Government approves the Contractor's comprehensive plan or plans for development of a discovery Commercial Discovery for the utilisation of Natural Gas are directly related to NANG in the types of development and outlets considereddomestic market or elsewhere, which parameters are not known today and, therefore, it is not possible to establish the applicable contractual conditions said Discovery shall be promptly developed by the Contractor in this Contract. However, if, after making appropriate studies and after agreement accordance with the Administration, Contractor considers that a discovery of Natural Gas, after meeting approved plan which shall be the priority needs described in Article 30.1 above, may give rise to commercial exploitation, the Parties agree: i. to discuss as soon as possible to define the legal, financial and tax conditions for the quick development of this discovery under satisfactory economic conditions allowing Contractor to obtain a profit on its investment as generally required for this type of project in the oil industry. To do so, the Administration may allow Contractor specific conditions concerning especially the recovery of the Oil Costs related to Natural Gas, production sharing and tax modalitiesDevelopment Plan. ii. in order to evaluate 21.5.5 In the marketability of a discovery of Natural Gas, Contractor will receive at its request an extension of event the ongoing exploration period for the time necessary to carry out the evaluation work and for a joint evaluation by the parties of the possible outlets for such discovery, both in the local market and for export, as well as the means necessary for marketing, especially concerning the incentives mentioned in paragraph (i) above. This extension, which may not, however, exceed ten years, will be granted by the Departments Responsible for Hydrocarbons free of charge, without application of the provisions in Article 28.3 above. iii. if Contractor does not declare the commercial nature commence development of the discovery of natural gas after this period, Contractor will be reputed to have waived these rights on natural gas. iv. if the parties decide that the discovery of natural gas is commercially exploitable, an exclusive exploitation authorization for gas will be granted to Contractor for the time necessary to exploit the deposit of natural gas, taking into account the commitments assumed by Contractor with third parties, such Discovery within the limit of thirty ten (10) years from the first sale corresponding to the commercial production date of this discovery. If, after the end notification of the period of thirty yearDiscovery, the commercial exploitation of the exploitation zone is still possible, the exclusive exploitation authorization of gas, may be renewed for the term indicated in the previous paragraph and under the conditions indicated in Article 18.1 above, mutatis mutandis, 30.3 If the discovery is not declared commercial, the state undertakes, in case of subsequent projects for the development of the deposit by another contractor, Contractor shall relinquish its rights to give Contractor preferred right under identical conditions. Contractor will have a term of six months to accept or refuse the competing proposal as of the receipt of the file sent to it by the state. This file must include the entire competing proposal as well as all data of all nature used in the preparation of the offer. This preferred right will be forfeited by Contractor ten years after the known commercial character of the discovery is entered in a report signed by those parties. 30.4 Whenever necessary to establish an equivalence between the natural gas develop such Discovery and the crude oil, particularly for area relating to such Discovery shall be excluded from the application of the withdrawal modalities of quantities of hydrocarbon for the recovery of oil costs here defined in Article 24, sharing of the remaining production defined in Article 25 and to determine the amount of the bonuses defined in Article 28.2, it is admitted that on hundred sixty-five cubic meters of natural gas are equal to one barrel of crude oil. This equivalence must be specified by Mutual consentContract Area. 30.5 The associated not marketed quantities of natural gas, excluding those used in the oil operations, must serve to improve the recovery rate of crude oil by reinjection, as part of the implementation of assisted recovery methods pursuant to Article 21.4. Torch burning must limited to a strict minimum. Contractor must comply with current regulations and the recommendations of the administration in the matter. In addition, if the state wants to dispose of the associated natural gas produced in the exploitation zone and not marketed or used by Contractor under the condition defined above, the parties will establish by mutual consent all additional technical measures that may be necessary to allow for the delivery and use of this natural gas.

Natural Gas. 30.1 Contractor 12.1. The Consortium will have priority the right to use freely the Associated Natural Gas for the requirements of the Petroleum Operations including for reinjection into the Commercial Fields. Any quantity of Associated Natural Gas which is not used for the requirements of the Petroleum Operations, and without chargewhose treatment and use in the opinion of the Consortium are not economic, shall (subject to the right of the State to take and dispose of such Gas under the conditions set forth below) be reinjected into subsoil or, when such reinjection is not required by the practice of the international petroleum industry, may be flaired with the approval of the Minister, SUCH APPROVAL NOT TO BE REFUSED IF THE FLARING OF THE GAS CONFORMS TO --------------------------------------------------------------------- THE PRACTICES OF THE INTERNATIONAL PETROLEUM INDUSTRY. ------------------------------------------------------------ The Consortium shall, except in case of emergency, request this approval from the Minister at least three (3) months in advance providing the necessary justifications showing in particular that all or part of this Gas cannot be usefully and economically used to improve the maximum economical re-injection rate in accordance with the provisions of Article 10.3 above. If the Consortium decides to treat and sell the Associated Natural Gas, the Consortium shall notify the Minister of this fact ; the parties shall then meet to discuss, as soon as possible, in order to make “gas lift” or reinjectionarrive at an agreement concerning the treatment and sale of the said Gas. If the Consortium decides not to treat and sell the Associated Natural Gas which is not required for the needs of the Petroleum Operations, the quantities of Natural Gas needed by it State may decide, at any time, to improve the recovery offtake all or part of the reserves said Gas at the exit point of the installation for separating the Crude Oil from and the fields operated by it in Natural Gas. The above Gas shall be placed at the Delimited Zone. To allow for this use, Contractor will provide to the Administration all information for a detailed examination disposal of the data of State without charge provided that the deposit discovered, as well as those explaining State shall bear any additional costs which are necessary for treating and offtaking the needs of gas of Gas beyond the fields concerned. If, for the same reasons, Contractor wishes to use certain quantities of Natural Gas for the fields operated by point where it outside the Delimited Zone, it must send a request in this sense to the Statewould have been flared. 12.2. If the State approves Consortium makes a discovery of Non-Associated Natural Gas which it considers potentially commercial, it shall notify the requestMinister as soon as possible. The Parties shall then meet to decide on the basis of all information available if the production and the sale of this Gas by the Consortium are possible and if so which conditions shall apply. 8.1 above, the Parties will meet surface fee relating to this extension shall be US$ 100 per square kilometer per annum. The State and the Consortium shall agree on the modalities term of this use. 30.2 The Parties recognize that the contractual conditions necessary to assure the marketing of a discovery of Natural Gas are directly related to the types of development and outlets considered, extension which parameters are not known today and, therefore, it is not possible to establish the applicable contractual conditions shall be set in this Contract. However, if, after making appropriate studies and after agreement with the Administration, Contractor considers that a discovery of Natural Gas, after meeting the priority needs described in Article 30.1 above, may give rise to commercial exploitation, the Parties agree: i. to discuss as soon as possible to define the legal, financial and tax conditions for the quick development of this discovery under satisfactory economic conditions allowing Contractor to obtain a profit on its investment as generally required for this type of project in the oil industry. To do so, the Administration may allow Contractor specific conditions concerning especially the recovery light of the Oil Costs related to Natural Gas, production sharing and tax modalities. ii. in order to evaluate the marketability of a discovery of Natural Gas, Contractor will receive at its request an extension of the ongoing exploration inevitable waiting period for the time necessary to carry out the evaluation work and for a joint evaluation by the parties of the possible outlets for such discovery, both in the local market and for export, as well as the means necessary for marketing, especially concerning the incentives mentioned in paragraph (i) above. This extension, which may not, however, exceed ten years, will be granted by the Departments Responsible for Hydrocarbons free of charge, without application of the provisions in Article 28.3 above. iii. if Contractor does not declare the commercial nature before exploitation of the discovery of natural gas after can start. During this period, Contractor will be reputed to have waived these rights on natural gas. iv. if the parties decide that the discovery of natural gas is commercially exploitable, an exclusive exploitation authorization for gas will be granted to Contractor for the time necessary to exploit the deposit of natural gas, taking into account the commitments assumed by Contractor with third parties, within the limit of thirty years from the first sale corresponding to the commercial production of this discovery. If, after the end of the period of thirty yearextension, the commercial exploitation of State and the exploitation zone is still possible, the exclusive exploitation authorization of gas, may be renewed for the term indicated in the previous paragraph and under the conditions indicated in Article 18.1 above, mutatis mutandis, 30.3 If the discovery is not declared commercial, the state undertakes, in case of subsequent projects for Consortium shall maintain close cooperation with a view to studying the development of the deposit by another contractor, to give Contractor preferred right under identical conditions. Contractor will have a term market and accelerating the start of six months to accept or refuse the competing proposal as exploitation of the receipt Discovery as much as possible as soon as economic conditions allow. 12.3. The price paid for the Natural Gas ([the Market Price]) shall be : a) in the case of sales to independent purchasers, equal to net price realized and obtained for the sale of this Natural Gas ; b) in the case of sales other than to independent purchasers, set by agreement between the State and the Consortium taking into account in particular : - the quantity and quality of the file sent to it by Natural Gas ; - the state. This file must include prices of sales of Natural gas produced from other sources in Chad and sold under comparable marxxx conditions, if any ; - the entire competing proposal as well as all data of all nature used in the preparation of the offer. This preferred right will be forfeited by Contractor ten years after the known commercial character of the discovery is entered in a report signed by those parties. 30.4 Whenever necessary to establish an equivalence between the natural gas and the crude oil, particularly forecasat use for the application Natural Gas ; - the national and international market price for subtitute forms of the withdrawal modalities of quantities of hydrocarbon for the recovery of oil costs here defined in Article 24, sharing of the remaining production defined in Article 25 and energy. In order to determine the amount of Ex-Field Market price for Natural Gas, this market Price shall be adjusted back to the bonuses defined in measurement point referred to under Article 28.2, it is admitted that on hundred sixty-five cubic meters of natural gas are equal to one barrel of crude oil. This equivalence must be specified 13.1 by Mutual consent. 30.5 The associated not marketed quantities of natural gas, excluding those used deducting transportation costs in the oil operations, must serve to improve the recovery rate of crude oil by reinjection, same way as part of the implementation of assisted recovery methods pursuant to provided for under Article 21.4. Torch burning must limited to a strict minimum. Contractor must comply with current regulations and the recommendations of the administration 21.3 in the matter. In addition, if the state wants to dispose case of the associated natural gas produced in the exploitation zone and not marketed or used by Contractor under the condition defined above, the parties will establish by mutual consent all additional technical measures that may be necessary to allow for the delivery and use of this natural gasCrude Oil.

Natural Gas. 30.1 21.1 Subject to Article 21.2, the Indian domestic market shall have the first call on the utilisation of Natural Gas discovered and produced from the Contract Area.Accordingly, any proposal by the Contractor will relating to Discovery and production of Natural Gas from the Contract Area shall be made in the context of the Government’s policy for the utilisation of Natural Gas and shall take into account the objectives of the Government to develop its resources in the most efficient manner and to promote conservation measures. 21.2 The Contractor shall have priority the right to use freely Natural Gas produced from the Contract Area for the purpose of Petroleum Operations including reinjection for pressure maintenance in Oil Fields, gas lifting and without chargecaptive power generation required for Petroleum Operations. 21.3 For the purpose of sales in the domestic market pursuant to this Article 21, the Contractor shall have freedom to market the Gas and sell its entitlement. 21.4 Associated Natural Gas (ANG) 21.4.1 In the event that a Discovery of Crude Oil contains ANG, the Contractor shall declare in order the proposal for the declaration of the said Discovery as a Commercial Discovery as specified in Article 10, whether (and by what amount) the estimated production of ANG is anticipated to make “gas lift” or reinjection, exceed the quantities of Natural Gas needed by it ANG which will be used in accordance with Article 21.2 (such excess being hereinafter referred to improve as “the recovery Excess ANG”). In such an event the Contractor shall indicate whether, on the basis of the reserves available data and information, it has reasonable grounds for believing that the Excess ANG could be commercially exploited in accordance with the terms of this Contract along with the Commercial Production of the Crude Oil from the fields operated by it Contract Area, and whether the Contractor intends to so exploit the Excess ANG. 21.4.2 Based on the principle of full utilisation and minimum flaring of ANG, a proposed development plan for an Oil Discovery shall, to the extent practicable, include a plan for utilisation of the ANG including estimated quantities to be flared, reinjected, and to be used for Petroleum Operations; and, if the Contractor proposes to commercially exploit the Excess ANG for sale in the Delimited Zone. To allow domestic market in accordance with Government’s policy, or elsewhere, the proposed plans for this use, Contractor will provide to such exploitation. 21.4.3 If the Administration all information for a detailed examination of the data of the deposit discovered, as well as those explaining the needs of gas of the fields concerned. If, for the same reasons, Contractor wishes to use certain quantities of Natural Gas for exploit the fields operated by it outside the Delimited ZoneExcess ANG, it must send a request in this sense subject to the State. If the State approves the requestArticle 21.1, the Parties will meet Contractor shall be free to agree on the modalities of this use. 30.2 The Parties recognize that the contractual conditions necessary to assure the marketing of a discovery of Natural Gas are directly related to the types of development and outlets considered, which parameters are not known today and, therefore, it is not possible to establish the applicable contractual conditions in this Contract. However, if, after making appropriate studies and after agreement with the Administration, Contractor considers that a discovery of Natural Gas, after meeting the priority needs described in Article 30.1 above, may give rise to commercial exploitation, the Parties agree: i. to discuss as soon as possible to define the legal, financial and tax conditions explore markets for the quick development of this discovery under satisfactory economic conditions allowing Contractor to obtain a profit on its investment as generally required for this type of project in the oil industry. To do so, the Administration may allow Contractor specific conditions concerning especially the recovery of the Oil Costs related to Natural Gas, production sharing and tax modalities. ii. in order to evaluate the marketability of a discovery of Natural Gas, Contractor will receive at its request an extension of the ongoing exploration period for the time necessary to carry out the evaluation work and for a joint evaluation by the parties of the possible outlets for such discovery, both in the local market and for export, as well as the means necessary for marketing, especially concerning the incentives mentioned in paragraph (i) above. This extension, which may not, however, exceed ten years, will be granted by the Departments Responsible for Hydrocarbons free of charge, without application of the provisions in Article 28.3 above. iii. if Contractor does not declare the commercial nature of the discovery of natural gas after this period, Contractor will be reputed to have waived these rights on natural gas. iv. if the parties decide that the discovery of natural gas is commercially exploitable, an exclusive exploitation authorization for gas will be granted to Contractor for the time necessary to exploit the deposit of natural gas, taking into account the commitments assumed by Contractor with third parties, within the limit of thirty years from the first sale corresponding to the commercial production of this discovery. If, after the end of the period of thirty year, the commercial exploitation of the said Excess ANG and submit its proposals for such exploitation zone to the Government in accordance with Article 21.4.2. 21.4.4 Where the Contractor is still possibleof the view that the Excess ANG cannot be commercially exploited and chooses not to exploit the said Excess ANG, or is unable to find a market for the Excess ANG pursuant to Article 21.4.3, the exclusive exploitation authorization Government shall be entitled to take and utilise such Excess ANG free of gasany cost/charge. 21.4.5 If the Government elects to take the Excess ANG as provided in Article 21.4.4: (a) the Contractor shall deliver such Excess ANG to the Government (or its nominee) free of any cost/charge, may at the downstream flange of the Gas/Oil separation facilities; (b) the Contractor shall, based on sound petroleum engineering practices, install such facilities as would facilitate, insofar as practicable, uninterrupted delivery of such Excess ANG to the Government or its nominee; (c) the cost of all facilities installed pursuant to paragraph (b) above shall be renewed borne by the Government (or its nominee); (d) the Government or its nominee shall bear all costs including gathering,treating, processing and transporting costs beyond the downstream flange of the Gas/Oil separation facilities; and (e) the delivery of such Excess ANG shall be subject to procedures to be agreed between the Government or its nominee and the Contractor prior to such delivery, such procedures to include matters relating to timing of off- take of such Excess ANG. Parties shall endeavour that such procedures do not restrict Oil production. 21.4.6 The Excess ANG which is not commercially exploited by the Contractor, or taken by the Government or its nominee pursuant to this Article 21, shall be returned to the subsurface structure or flared or otherwise disposed off as approved by the Government in the context of the Development Plan, provided that flaring will be resorted to only for small quantities and as a last resort. 21.4.7 As soon as practicable after the submission of the proposed development plan, the Contractor and the Government or its nominee shall meet to discuss the sale and/or disposal of any ANG discovered with a view to giving effect to the provisions of this Article 21 in a timely manner. 21.5 Non Associated Natural Gas (NANG) 21.5.1 In the event of a Discovery of NANG in the Contract Area, the Contractor shall promptly report such Discovery to the Management Committee and the Government and the provisions of Articles 10.1 and 10.2 shall apply. The remaining provisions of Article 10 would apply to the Discovery and development of NANG only insofar as they are not inconsistent with the provisions of this Article. Notwithstanding the provisions of Article 3, the Contractor shall be entitled to retain the Discovery Area subject to the provisions of this Article 21. 21.5.2 If, pursuant to Article 10.1, the Contractor gives notification that the Discovery is of potential commercial interest, the Contractor shall submit to the Management Committee, within one (1) year from the date of notification of the above said Discovery, the proposed Appraisal Programme, including a Work Programme and Budget to carry out an adequate and effective appraisal of such Discovery, to determine (i) without delay, whether such Discovery is a Commercial Discovery and (ii) with reasonable precision, the boundaries of the area to be delineated as the Development Area. Such proposed Appraisal Programme shall be supported by all relevant data such as Well data, Contractor’s best estimate of reserve range and production potential, and shall indicate the date of commencement of the proposed Appraisal Programme. 21.5.3 The proposed Appraisal Programme together with the Work Programme and Budget referred to in Article 21.5.2 shall be considered by the Management Committee within one hundred and twenty (120) days of its submission by the Contractor. The Management Committee shall review the Appraisal Programme of 21.5.4 If on the basis of the results of the Appraisal Programme, the Contractor is of the opinion that XXXX has been discovered in commercial quantities, it shall submit to the Management Committee as soon as practicable but not later than three (3) years from the date of notification of the aforementioned Discovery, a proposal for the term indicated declaration of the Discovery as a Commercial Discovery. Such proposal shall take into account the Government’s policies on Gas utilization and propose alternative options, if any for use or consumption of the NANG and be accompanied by a report on the Discovery supported by, inter alia, technical and economic data, evaluations, interpretations and analyses of such data and feasibility studies relating to the Discovery prepared by or on behalf of the Contractor, and other relevant information. If no proposal is submitted to the Management Committee by the Contractor within three (3) years from the said Discovery, the Contractor shall relinquish its rights to develop such Discovery and the area relating to such Discovery shall be excluded from the Contract Area. 21.5.5 Where the Contractor has submitted a proposal for the declaration of a Discovery as a Commercial Discovery, the Management Committee shall consider the proposal of the Contractor with reference to commercial utilization or commercial development of the NANG in the previous paragraph domestic market or elsewhere and under in the conditions indicated context of Government’s policy on Gas utilization and the chain of activities required to bring the NANG from the Delivery Point to potential consumers in Article 18.1 abovethe domestic market or elsewhere. The Management Committee may, mutatis mutandis,within ninety 30.3 21.5.6 If the discovery is not declared commercialContractor declares the Discovery a Commercial Discovery after taking into account the advice of the Management Committee as referred to in the Article 21.5.5, the state undertakesContractor shall, in case within one (1) year of subsequent projects the declaration of the Discovery as a Commercial Discovery, submit a development plan for the development of the deposit Discovery to the Management Committee for approval. Such plan shall be supported by another contractorall relevant information including, inter alia, the information required in Article 10.7. 21.5.7 Unless otherwise agreed by the Management Committee, it shall consider the proposed development plan and give their approval within one hundred and eighty (180) days of submission thereof or ninety (90) days from the receipt of the clarifications/additional information from the Contractor. Any clarification/additional information required by the Management Committee shall be asked for within ninety (90) days of receipt of the proposal from the Contractor. The Contractor shall provide such additional information within thirty 21.5.8 Where the development plan is submitted to give the Government for approval pursuant to Article 21.5.7, the Government shall convey its decision within one hundred and twenty (120) days from the date of receipt of the proposal from the Contractor. Government, where it considers necessary, may ask clarifications/additional information from the Contractor preferred within ninety (90) days and shall convey its decision within sixty (60) days from the date of receipt of such clarifications/additional information. 21.5.9 If the Government has failed to approve or disapproves the Contractor’s proposed development plan, within one hundred and twenty (120) days from receipt or within sixty (60) days from the receipt of clarifications/information from the Contractor as mentioned in the Article 21.5.8, the Government shall advise the Contractor, in writing, of the reasons for such failure or disapproval and the Government and the Contractor shall meet to discuss the said development plan and the reasons for the said failure to approve or disapproval, and use their best efforts to agree on appropriate modifications thereto to meet the Government’s concerns or objections. Thereafter, the Contractor shall have the right under identical conditionsto resubmit, within ninety (90) days of communication from the Government, the proposed development plan duly amended to meet the Government’s concerns.Such right of resubmission of the proposed development plan shall be exercisable by the Contractor only once. The Government will respond to the re- submitted plan within one hundred and twenty (120) days. If no such plan is submitted to the Government within the above specified period, the Contractor shall relinquish its right to develop such Gas Discovery and such Discovery shall be excluded from the Contract Area. 21.5.10 In the event that the Management Committee or Government, as may be the case, approves the Contractor’s development plan for the development of such Commercial Discovery, with such modifications and amendments as the Management Committee or Government, as may be the case, may approve, the said Gas Discovery shall be promptly developed by the Contractor in accordance with the approved plan which shall be the Development Plan. 21.5.11 The Contractor will have a term two (2) years period, from the date of six months to accept or refuse the competing proposal as approval of the receipt Development Plan by the Management Committee or Government, to tie-up the market(s) for sale of Non-associated Natural Gas. 21.5.12 In the event the Contractor does not commence development of such Discovery within ten (10) years from the date of the file sent first Discovery Well, the Contractor shall relinquish its right to it by the state. This file must include the entire competing proposal as well as all data of all nature used in the preparation of the offer. This preferred right will be forfeited by Contractor ten years after the known commercial character of the discovery is entered in a report signed by those parties. 30.4 Whenever necessary to establish an equivalence between the natural gas develop such Discovery and the crude oil, particularly for area relating to such Discovery shall be excluded from the application of the withdrawal modalities of quantities of hydrocarbon for the recovery of oil costs here defined in Article 24, sharing of the remaining production defined in Article 25 and to determine the amount of the bonuses defined in Article 28.2, it is admitted that on hundred sixty-five cubic meters of natural gas are equal to one barrel of crude oil. This equivalence must be specified by Mutual consentContract Area. 30.5 The associated not marketed quantities of natural gas, excluding those used in the oil operations, must serve to improve the recovery rate of crude oil by reinjection, as part of the implementation of assisted recovery methods pursuant to Article 21.4. Torch burning must limited to a strict minimum. Contractor must comply with current regulations and the recommendations of the administration in the matter. In addition, if the state wants to dispose of the associated natural gas produced in the exploitation zone and not marketed or used by Contractor under the condition defined above, the parties will establish by mutual consent all additional technical measures that may be necessary to allow for the delivery and use of this natural gas.

Natural Gas. 30.1 (a) Where Contractor will have priority right to use freely has informed the Minister and without charge, ZPRA that Non-Associated Natural Gas discovered in order to make “gas lift” or reinjectionthe Contract Area is of potential commercial interest, the quantities of Natural Gas needed by it to improve the recovery of the reserves of the Crude Oil from the fields operated by it in the Delimited Zone. To allow for this useContractor shall, Contractor will provide to the Administration all information for a detailed examination of the data of the deposit discovered, as well as those explaining the needs of gas of the fields concerned. If, for the same reasons, Contractor wishes to use certain quantities of Natural Gas for the fields operated by it outside the Delimited Zone, it must send a request in this sense to the State. If the State approves the request, the Parties will meet to agree on the modalities of this use. 30.2 The Parties recognize that the contractual conditions necessary to assure the marketing of a discovery of Natural Gas are directly related to the types of development and outlets considered, which parameters are not known today and, therefore, it is not possible to establish the applicable contractual conditions in this Contract. However, if, after making appropriate studies and after agreement with the Administration, Contractor considers that a discovery of Natural Gas, after meeting the priority needs described in Article 30.1 above, may give rise to commercial exploitation, the Parties agree: i. to discuss as soon as possible but in any case not exceeding thirty days (30) submit to define the legalZPRA, financial and tax conditions for the quick development of this discovery under satisfactory economic conditions allowing Contractor to obtain a profit on consideration its investment proposals for an appraisal programme as generally required for this type of project provided in the oil industryAct. To do soAfter completion by the Contractor of an appraisal program, the Administration may allow Contractor specific conditions concerning especially parties shall meet together with a view to reaching an agreement on the recovery development, production, processing and sale of such gas. For the purpose of the Oil Costs related to Natural Gasaforesaid, production sharing and tax modalities. ii. in order to evaluate the marketability of a discovery of Natural Gas, Contractor will receive at its request an extension of the ongoing exploration period for the time necessary to carry out the evaluation work and for a joint evaluation by the parties of undertake to negotiate in good faith and in doing so will seek to give effect to the possible outlets for such discovery, both in the local market and for export, as well as the means necessary for marketing, especially concerning the incentives mentioned in paragraph following principles: (i) above. This extensionall Contract Expenses directly attributed to the discovery and production of such gas shall be recovered from part thereof and the remainder of the gas shared between the Contractor and ZPDC as far as possible in accordance with the scheme for cost recovery and sharing of Profit Oil/Gas set out in Article 12; and (ii) to the extent that market conditions permit, gas will be valued for cost recovery and sold for processing or export at prices which may notwill give to the Contractor a fair return on its investment. (b) Where:- (i) Non-Associated Natural Gas has been discovered in the Contract Area, howeverand (ii) a Location has been declared in respect of a Block or Blocks in which such discovery is located, and (iii) the parties agree that the Non-Associated Gas discovered by the Contractor exists in the Contract Area in quantities sufficient to justify consideration of an export scheme, The Minister will, in accordance with the Act, if ZPDC at the request of the Contractor applies in that behalf, extend for a reasonable time, not to exceed ten three (3) years, will the period within which ZPDC may apply for a Development License over a Block or Blocks within that Location. (c) Subject to the provisions of the Act, Natural Gas associated with Crude Oil and not used in Petroleum Operations may be granted by flared only if the Departments Responsible for Hydrocarbons use thereof is uneconomic. However, ZPDC may elect to off take, free of charge, without application at the wellhead or gas oil separator and use for domestic requirements such Natural Gas that would otherwise be flared, provided that all costs associated with ZPDC’s utilization of the provisions in Article 28.3 above. iiiNatural Gas be borne by ZPDC. if Contractor does It is understood that such off take should not declare the commercial nature of the discovery of natural gas after this period, Contractor will be reputed to have waived these rights on natural gas. iv. if the parties decide that the discovery of natural gas is commercially exploitable, an exclusive exploitation authorization for gas will be granted to Contractor for the time necessary to exploit the deposit of natural gas, taking into account the commitments assumed by Contractor with third parties, within the limit of thirty years from the first sale corresponding detrimental to the commercial production of this discovery. If, after the end of the period of thirty year, the commercial exploitation of the exploitation zone is still possible, the exclusive exploitation authorization of gas, may be renewed for the term indicated in the previous paragraph and under the conditions indicated in Article 18.1 above, mutatis mutandis, 30.3 If the discovery is not declared commercial, the state undertakes, in case of subsequent projects for the development of the deposit by another contractor, to give Contractor preferred right under identical conditions. Contractor will have a term of six months to accept or refuse the competing proposal as of the receipt of the file sent to it by the state. This file must include the entire competing proposal as well as all data of all nature used in the preparation of the offer. This preferred right will be forfeited by Contractor ten years after the known commercial character of the discovery is entered in a report signed by those parties. 30.4 Whenever necessary to establish an equivalence between the natural gas and the crude oil, particularly for the application of the withdrawal modalities of quantities of hydrocarbon for the recovery prompt conduct of oil costs here defined in Article 24, sharing of the remaining production defined in Article 25 and field operations according to determine the amount of the bonuses defined in Article 28.2, it is admitted that on hundred sixty-five cubic meters of natural gas are equal to one barrel of crude oil. This equivalence must be specified by Mutual consentBest International Petroleum Industry Practices. 30.5 The associated not marketed quantities of natural gas, excluding those used in the oil operations, must serve to improve the recovery rate of crude oil by reinjection, as part of the implementation of assisted recovery methods pursuant to Article 21.4. Torch burning must limited to a strict minimum. Contractor must comply with current regulations and the recommendations of the administration in the matter. In addition, if the state wants to dispose of the associated natural gas produced in the exploitation zone and not marketed or used by Contractor under the condition defined above, the parties will establish by mutual consent all additional technical measures that may be necessary to allow for the delivery and use of this natural gas.

Natural Gas. 30.1 (a) Where Contractor will have priority right to use freely and without charge, has informed TPDC that Non-Associated Natural Gas discovered in order to make “gas lift” or reinjectionthe Contract Area is of potential commercial interest, the quantities of Natural Gas needed by it to improve the recovery of the reserves of the Crude Oil from the fields operated by it in the Delimited Zone. To allow for this useContractor shall, Contractor will provide to the Administration all information for a detailed examination of the data of the deposit discovered, as well as those explaining the needs of gas of the fields concerned. If, for the same reasons, Contractor wishes to use certain quantities of Natural Gas for the fields operated by it outside the Delimited Zone, it must send a request in this sense to the State. If the State approves the request, the Parties will meet to agree on the modalities of this use. 30.2 The Parties recognize that the contractual conditions necessary to assure the marketing of a discovery of Natural Gas are directly related to the types of development and outlets considered, which parameters are not known today and, therefore, it is not possible to establish the applicable contractual conditions in this Contract. However, if, after making appropriate studies and after agreement with the Administration, Contractor considers that a discovery of Natural Gas, after meeting the priority needs described in Article 30.1 above, may give rise to commercial exploitation, the Parties agree: i. to discuss as soon as possible but in any case not exceeding thirty days (30) submit to define the legalTPDC, financial and tax conditions for the quick development consideration of this discovery under satisfactory economic conditions allowing Contractor to obtain a profit on the Advisory Committee, its investment proposals for an appraisal programme as generally required for this type of project provided in the oil industryAct. To do soAfter completion by the Contractor of an appraisal program, the Administration may allow Contractor specific conditions concerning especially parties shall meet together with a view to reaching an agreement on the recovery development, production, processing and sale of such gas. For the purpose of the Oil Costs related to Natural Gasaforesaid, production sharing and tax modalities. ii. in order to evaluate the marketability of a discovery of Natural Gas, Contractor will receive at its request an extension of the ongoing exploration period for the time necessary to carry out the evaluation work and for a joint evaluation by the parties of undertake to negotiate in good faith and in doing so will seek to give effect to the possible outlets for such discovery, both in the local market and for export, as well as the means necessary for marketing, especially concerning the incentives mentioned in paragraph following principles: (i) above. This extensionall Contract Expenses directly attributed to the discovery and production of such gas shall be recovered from part thereof and the remainder of the gas shared between the Contractor and TPDC as far as possible in accordance with the scheme for cost recovery and sharing of Profit Oil/Gas set out in Article 12; and (ii) to the extent that market conditions permit, gas will be valued for cost recovery and sold for processing or export at prices which may notwill give to the Contractor a fair return on its investment. (b) Where:- (i) Non-Associated Natural Gas has been discovered in the Contract Area, howeverand (ii) a Location has been declared in respect of a Block or Blocks in which such discovery is located, and (iii) the parties agree that the Non-Associated Gas discovered by the Contractor exists in the Contract Area in quantities sufficient to justify consideration of an export scheme, the Minister will, in accordance with the Act, if TPDC at the request of the Contractor applies in that behalf, extend for a reasonable time, not to exceed ten three (3) years, will the period within which TPDC may apply for a Development Licence over a Block or Blocks within that Location. (c) Subject to the provisions of the Act, Natural Gas associated with Crude Oil and not used in Petroleum Operations may be granted by flared only if the Departments Responsible for Hydrocarbons use thereof is uneconomic. However, TPDC may elect to off take, free of charge, without application at the wellhead or gas oil separator and use for domestic requirements such Natural Gas that would otherwise be flared, provided that all costs associated with TPDC’s utilization of the provisions in Article 28.3 above. iiiNatural Gas be borne by TPDC. if Contractor does It is understood that such off take should not declare the commercial nature of the discovery of natural gas after this period, Contractor will be reputed to have waived these rights on natural gas. iv. if the parties decide that the discovery of natural gas is commercially exploitable, an exclusive exploitation authorization for gas will be granted to Contractor for the time necessary to exploit the deposit of natural gas, taking into account the commitments assumed by Contractor with third parties, within the limit of thirty years from the first sale corresponding detrimental to the commercial production of this discovery. If, after the end of the period of thirty year, the commercial exploitation of the exploitation zone is still possible, the exclusive exploitation authorization of gas, may be renewed for the term indicated in the previous paragraph and under the conditions indicated in Article 18.1 above, mutatis mutandis, 30.3 If the discovery is not declared commercial, the state undertakes, in case of subsequent projects for the development of the deposit by another contractor, to give Contractor preferred right under identical conditions. Contractor will have a term of six months to accept or refuse the competing proposal as of the receipt of the file sent to it by the state. This file must include the entire competing proposal as well as all data of all nature used in the preparation of the offer. This preferred right will be forfeited by Contractor ten years after the known commercial character of the discovery is entered in a report signed by those parties. 30.4 Whenever necessary to establish an equivalence between the natural gas and the crude oil, particularly for the application of the withdrawal modalities of quantities of hydrocarbon for the recovery prompt conduct of oil costs here defined in Article 24, sharing of the remaining production defined in Article 25 and field operations according to determine the amount of the bonuses defined in Article 28.2, it is admitted that on hundred sixty-five cubic meters of natural gas are equal to one barrel of crude oil. This equivalence must be specified by Mutual consentBest International Petroleum Industry Practices. 30.5 The associated not marketed quantities of natural gas, excluding those used in the oil operations, must serve to improve the recovery rate of crude oil by reinjection, as part of the implementation of assisted recovery methods pursuant to Article 21.4. Torch burning must limited to a strict minimum. Contractor must comply with current regulations and the recommendations of the administration in the matter. In addition, if the state wants to dispose of the associated natural gas produced in the exploitation zone and not marketed or used by Contractor under the condition defined above, the parties will establish by mutual consent all additional technical measures that may be necessary to allow for the delivery and use of this natural gas.

Natural Gas. 30.1 (a) Where Contractor will have priority right to use freely and without charge, has informed TPDC that Non-Associated Natural Gas discovered in order to make “gas lift” or reinjectionthe Contract Area is of potential commercial interest, the quantities of Natural Gas needed by it to improve the recovery of the reserves of the Crude Oil from the fields operated by it in the Delimited Zone. To allow for this useContractor shall, Contractor will provide to the Administration all information for a detailed examination of the data of the deposit discovered, as well as those explaining the needs of gas of the fields concerned. If, for the same reasons, Contractor wishes to use certain quantities of Natural Gas for the fields operated by it outside the Delimited Zone, it must send a request in this sense to the State. If the State approves the request, the Parties will meet to agree on the modalities of this use. 30.2 The Parties recognize that the contractual conditions necessary to assure the marketing of a discovery of Natural Gas are directly related to the types of development and outlets considered, which parameters are not known today and, therefore, it is not possible to establish the applicable contractual conditions in this Contract. However, if, after making appropriate studies and after agreement with the Administration, Contractor considers that a discovery of Natural Gas, after meeting the priority needs described in Article 30.1 above, may give rise to commercial exploitation, the Parties agree: i. to discuss as soon as possible but in any case not exceeding thirty days (30) submit to define the legalTPDC, financial and tax conditions for the quick development consideration of this discovery under satisfactory economic conditions allowing the Advisory Committee, its proposals for an appraisal programme to meet the requirements of Section 32 (2) of the Act. After completion by the Contractor to obtain a profit on its investment as generally required for this type of project in the oil industry. To do soan appraisal program, the Administration may allow Contractor specific conditions concerning especially parties shall meet together with a view to reaching an agreement on the recovery development, production, processing and sale of such gas. For the purpose of the Oil Costs related to Natural Gasaforesaid, production sharing and tax modalities. ii. in order to evaluate the marketability of a discovery of Natural Gas, Contractor will receive at its request an extension of the ongoing exploration period for the time necessary to carry out the evaluation work and for a joint evaluation by the parties of undertake to negotiate in good faith and in doing so will seek to give effect to the possible outlets for such discovery, both in the local market and for export, as well as the means necessary for marketing, especially concerning the incentives mentioned in paragraph following principles: (i) above. This extensionall Contract Expenses directly attributed to the discovery and production of such gas shall be recovered from part thereof and the remainder of the gas shared between the Contractor and TPDC as far as possible in accordance with the scheme for cost recovery and sharing of Profit Oil/Gas set out in Article 11; and (ii) to the extent that market conditions permit, gas will be valued for cost recovery and sold for processing or export at prices which may notwill give to the Contractor a fair return on its investment. (b) Where:- (i) Non-Associated Natural Gas has been discovered in the Contract Area, howeverand (ii) a Location has been declared in respect of a Block or Blocks in which such discovery is located, and (iii) the parties agree that the Non-Associated Gas discovered by the Contractor exists in the Contract Area in quantities sufficient to justify consideration of an export scheme, the Minister will, if TPDC at the request of the Contractor applies in that behalf, extend for a reasonable time, not to exceed ten three (3) years, will the period within which TPDC may apply for a Development Licence over a Block or Blocks within that Location. (c) Subject to the provisions of the Act, Natural Gas associated with Crude Oil and not used in Petroleum Operations may be granted by flared only if the Departments Responsible for Hydrocarbons use thereof is uneconomic. However, TPDC may elect to offtake, free of charge, without application at the wellhead or gas oil separator and use for domestic requirements such Natural Gas that would otherwise be flared, provided that all costs associated with TPDC’s utilization of the provisions in Article 28.3 above. iiiNatural Gas be borne by TPDC. if Contractor does It is understood that such offtake should not declare the commercial nature of the discovery of natural gas after this period, Contractor will be reputed to have waived these rights on natural gas. iv. if the parties decide that the discovery of natural gas is commercially exploitable, an exclusive exploitation authorization for gas will be granted to Contractor for the time necessary to exploit the deposit of natural gas, taking into account the commitments assumed by Contractor with third parties, within the limit of thirty years from the first sale corresponding detrimental to the commercial production of this discovery. If, after the end of the period of thirty year, the commercial exploitation of the exploitation zone is still possible, the exclusive exploitation authorization of gas, may be renewed for the term indicated in the previous paragraph and under the conditions indicated in Article 18.1 above, mutatis mutandis, 30.3 If the discovery is not declared commercial, the state undertakes, in case of subsequent projects for the development of the deposit by another contractor, to give Contractor preferred right under identical conditions. Contractor will have a term of six months to accept or refuse the competing proposal as of the receipt of the file sent to it by the state. This file must include the entire competing proposal as well as all data of all nature used in the preparation of the offer. This preferred right will be forfeited by Contractor ten years after the known commercial character of the discovery is entered in a report signed by those parties. 30.4 Whenever necessary to establish an equivalence between the natural gas and the crude oil, particularly for the application of the withdrawal modalities of quantities of hydrocarbon for the recovery prompt conduct of oil costs here defined in Article 24, sharing of the remaining production defined in Article 25 and field operations according to determine the amount of the bonuses defined in Article 28.2, it is admitted that on hundred sixty-five cubic meters of natural gas are equal to one barrel of crude oilGood Oilfield Practices. This equivalence must be specified by Mutual consent. 30.5 The associated not marketed quantities of natural gas, excluding those used in the oil operations, must serve to improve the recovery rate of crude oil by reinjection, as part of the implementation of assisted recovery methods pursuant to Article 21.4. Torch burning must limited to a strict minimum. Contractor must comply with current regulations and the recommendations of the administration in the matter. In addition, if the state wants to dispose of the associated natural gas produced in the exploitation zone and not marketed or used by Contractor under the condition defined above, the parties will establish by mutual consent all additional technical measures that may be necessary to allow for the delivery and use of this natural gas.