Options to End the Exploration Phase. 5.18. The Concessionaire may end the Exploration Phase at any time upon notice to ANP.
Options to End the Exploration Phase. The Concessionaire may end the Exploration Phase at any time upon notice to ANP. The end shall not release the Concessionaire from compensation for any failure to comply with the Minimum Exploration Program. Failure to comply with, in part or in full, the Minimum Exploration Program shall entail lawful termination of the Agreement and execution of the compensatory penalty provided for in Section Six, and no other penalties are applicable as a result of such failure. The value of the activities of the Minimum Exploration Program not developed are defined in Units of Work and are net, and they may be required from the Concessionaire or guarantor, always subject to inflation adjustment by the IGP-DI pursuant to paragraph 6.2. Development Areas eventually retained by the Concessionaire and the event provided for in paragraph 5.11 are exceptions to the abovementioned provision. Concessionaire’s Options after Completion of the Minimum Exploration Program After performance of the Minimum Exploration Program and up to the end of the term expected for the Exploration Phase, the Concessionaire may, upon prior formal written notice to ANP: propose the development of a Discovery Assessment Plan, relinquishing the remaining Concession Area; inform the Commercial Feasibility of the Discovery, pursuant to the dispositions of Section Seven of this Agreement, initiating the Production Phase; retain the areas in which postponement of the Declaration of Commercial Feasibility is applicable, under paragraphs 8.4 and 8.5; or fully relinquish the Concession Area. Relinquishment of the Concession Area at the End of the Exploration Phase Within sixty (60) days of the end of the Exploration Phase, the Concessionaire must forward to ANP a plan for relinquishment of areas, prepared pursuant to the Applicable Laws and Regulations. The submission of such plan does not imply any kind of acknowledgement or release by ANP nor exempt the Concessionaire from performing the Minimum Exploration Program and fulfilling the responsibilities provided for in Section Twenty-One. SECTION SIX – COMPENSATORY PENALTY FOR DEFAULT OF THE MINIMUM EXPLORATION PROGRAM Compensatory Penalty for Default of the Minimum Exploration Program As compensatory penalty for default of the Minimum Exploration Program, the Concessionaire shall pay a fine in an amount equal to the Minimum Exploration Program non-performed, as provided for in paragraphs 6.14 to 6.16. If the amount of the fine imposed by ANP is higher than...
