Common use of Options to End the Exploration Phase Clause in Contracts

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. 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. 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. 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 the amount obtained through the execution of the financial guarantee effected under paragraph 6.14, its charge shall proceed based on the difference. The Concessionaire shall provide ANP with one or more financial guarantees for the Minimum Exploration Program, according to the amount set in Annex II, within the term established in the tender protocol. The financial guarantees provided shall be accompanied by a letter signed by all Concessionaires expressing full awareness of paragraph 14.4 and of the fact that the obligations of the Minimum Exploration Program are not fractional, and each Concessionaire shall be jointly responsible for reimbursement in case of default. In case the Concessionaire does not provide the suitable financial guarantees, the Agreement shall be terminated regarding the areas that are not under Development.

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 6.26.9. Development Areas eventually retained by the Concessionaire and the event provided for in paragraph 5.11 are exceptions to the abovementioned provision. 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. Within sixty (60) days of the end of the Exploration Phase, the Concessionaire must forward to ANP a plan for relinquishment of areasareas that were not retained, 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-OneProgram. As compensatory penalty for default of the Minimum Exploration Program, the Concessionaire shall be required to 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 ANP the amount of the fine imposed by ANP is higher than the amount obtained through the execution of the financial guarantee effected under paragraph 6.14, its charge shall proceed based on the differenceset forth in Annex II per activity defaulted. The Concessionaire shall provide ANP with one or more financial guarantees for the Minimum Exploration Program, Program according to the amount set forth in Annex II, within the term established in the tender protocol, in an amount sufficient to cover the amount of the compensatory penalty corresponding to the Units of Work initially committed. The financial guarantees provided shall be accompanied by a letter signed by all Concessionaires expressing full awareness of paragraph 14.4 14.3 and of the fact that the obligations of the Minimum Exploration Program are not fractional, and each Concessionaire shall be jointly responsible for reimbursement in case of default. In case the Concessionaire does not provide the suitable financial guarantees, the Agreement shall be terminated regarding the areas that are not under Development.

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 6.26.9. Development Areas eventually retained by the Concessionaire and the event provided for in paragraph 5.11 5.11.1 are exceptions to the abovementioned provision. 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. 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. 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 6.166.15. If the amount of the fine imposed by ANP is higher than the amount obtained through the execution of the financial guarantee effected under paragraph 6.14, its charge shall proceed based on the difference. The Concessionaire shall provide ANP with one or more financial guarantees for the Minimum Exploration Program, according to the amount set in Annex II, within the term established in the tender protocol. The financial guarantees provided shall be accompanied by a letter signed by all Concessionaires expressing full awareness of paragraph 14.4 and of the fact that the obligations of the Minimum Exploration Program are not fractional, and each Concessionaire shall be jointly responsible for reimbursement in case of default. In case the Concessionaire does not provide the suitable financial guarantees, the Agreement shall be terminated regarding the areas that are not under Development.

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 6.26.9. Development Areas eventually retained by the Concessionaire and the event provided for in paragraph 5.11 5.11.1 are exceptions to the abovementioned provision. 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. 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-OneProgram. 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 6.16and 6.15. If the amount of the fine imposed by ANP is higher than the amount obtained through the execution of the financial guarantee effected under paragraph 6.14, its charge shall proceed based on the difference. The Concessionaire shall provide ANP with one or more financial guarantees for the Minimum Exploration Program, according to the amount set in Annex II, within the term established in the tender protocol. The financial guarantees provided shall be accompanied by a letter signed by all Concessionaires expressing full awareness of paragraph 14.4 15.4 and of the fact that the obligations of the Minimum Exploration Program are not fractional, and each Concessionaire shall be jointly responsible for reimbursement in case of default. In case the Concessionaire does not provide the suitable financial guarantees, the Agreement shall be terminated regarding the areas that are not under Development.

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 withexecute, in part full or in fullpart, the Minimum Exploration Program shall entail at the End of the Exploration Phase entails the lawful termination of the Agreement and Agreement, without prejudice to the execution of the compensatory penalty provided financial guarantees for in Section Six, exploration activities and no other penalties are applicable as a result application of such failureappropriate sanctions. The value values 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 6.2M between the date of the public session for submission of bids and the date of the ultimate payment. Development Areas eventually retained by the Concessionaire and the event provided for in paragraph 5.11 are exceptions to the abovementioned provision. After performance completion 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 assess any Discovery Assessment Plan, relinquishing regarding 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. 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 the plan for relinquishment of areas does not imply entail any kind of acknowledgement or release by ANP nor or exempt the Concessionaire from performing compliance with the Minimum Exploration Program and fulfilling the responsibilities provided for indicated in Section Twenty-One. 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 the amount obtained through the execution of the financial guarantee effected under paragraph 6.14, its charge shall proceed based on the difference. The Concessionaire shall provide to ANP with one or more financial guarantees for the Minimum Exploration Program, according to the amount set in Annex II, within the term established in the tender protocol. The financial guarantees provided shall be accompanied by a letter signed by all Concessionaires expressing full awareness of paragraph 14.4 and of the fact that the obligations of the Minimum Exploration Program are not fractional, and each Concessionaire shall be jointly responsible for reimbursement in case of default. In case the Concessionaire does not provide the suitable financial guarantees, the Agreement shall be terminated regarding the areas that are not under Development.

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 withAny failure, in part or in full, to comply with 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 not developed under 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 6.26.9. Development Areas eventually retained by the Concessionaire and the event provided for in paragraph 5.11 5.11.1 are exceptions to the abovementioned provision. 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 execution of a Discovery Assessment Plan, relinquishing the remaining Concession Area; inform declare the Commercial Feasibility of the Discovery, pursuant to the dispositions provisions of Section Seven of this Agreement, initiating the Production Phase; retain the areas in related to which postponement of is possible to postpone the Declaration of Commercial Feasibility is applicable, under paragraphs 8.4 and 8.5; or fully relinquish the Concession Area. Within sixty (60) days of the end of the Exploration Phase, the Concessionaire must forward to ANP a plan for relinquishment of areasareas that were not retained, prepared pursuant to the Applicable Laws and Regulations. The submission Submission of such plan does not imply any kind of acknowledgement or release by ANP nor exempt exempts the Concessionaire from performing the Minimum Exploration Program and fulfilling the responsibilities provided for in Section Twenty-OneProgram. As compensatory penalty for default non-performance of the Minimum Exploration Program, the Concessionaire shall be required to pay a fine to ANP the amount set forth in an amount equal to the Minimum Exploration Program Annex II per non-performed, as provided for in paragraphs 6.14 to 6.16. If the amount of the fine imposed by ANP is higher than the amount obtained through the execution of the financial guarantee effected under paragraph 6.14, its charge shall proceed based on the differencedeveloped activity. The Concessionaire shall provide ANP with one or more financial guarantees for the Minimum Exploration Program, Program according to the amount set forth in Annex II, within the term established in the tender protocol, in an amount sufficient to cover the amount of the compensatory penalty corresponding to the Units of Work initially committed. The financial guarantees provided shall be accompanied by a letter signed by all Concessionaires expressing full awareness acknowledgement of paragraph 14.4 15.4 and of the fact that the obligations of the Minimum Exploration Program are not fractional, and each Concessionaire shall be jointly responsible liable for any reimbursement in case of defaultfailure to perform. In case the Concessionaire does not provide the suitable proper financial guarantees, the Agreement shall be terminated regarding the areas that are not under Development.