Procedure for proposing Operations with Exclusive Risks. As provided for in paragraphs Erro! Fonte de referência não encontrada. and Erro! Fonte de referência não encontrada., in case any Contractor proposes the performance of an Operation with Exclusive Risk, the Contractor shall submit such proposal to the Manager for approval, which shall only reject it in case its execution entails delay in the approved Work and Budget Program or poses any risk to the other Operations under this Agreement. The proposal shall specify the exclusive nature of the Operations and include the work to be carried out, location, objectives, and its estimated cost. After approval by the Manager, the proposing Contractor shall immediately notify the other Contractors so that they express if they will adhere or not to the proposed Operation with Exclusive Risk. The Contractors intending to adhere to the Operation with Exclusive Risk shall notify the proposing Contractor and the Operator within ten (10) days of receipt of the notice proposing the Operation with Exclusive Risk. The Contractor’s absence of expression of adherence to the proposed Operation with Exclusive Risk by the end of the deadline established in paragraph Erro! Fonte de referência não encontrada. shall be interpreted as a refusal. Costs of the Operation with Exclusive Risk The costs and risks of the Operation with Exclusive Risk shall be exclusively undertaken by the proposing Contractors or those adhering to it in the proportion of their share in the Consortium and only considering the Contractors participating in such Operation or as agreed by them. The Contractors shall previously agree on the award to be paid by the Contractors not participating in the Operation with Exclusive Risk in case of evidenced success of the Exclusive Operation resulting in expansion of the recoverable volume of hydrocarbons in the Contract Area or in reduced expenses for the Consortium. The Manager shall not pay the award. The costs of the Operation with Exclusive Risk, in case of evidenced success, measured in expansion of the recoverable volume or in reduced expenses, shall be recoverable as Cost Oil. The award to be paid by the Contractors later adhering to the Operation with Exclusive Risk shall not be recoverable as Cost Oil.
Procedure for proposing Operations with Exclusive Risks. 4.3. Pursuant to the provisions in paragraphs 4.1 and 4.2, in case any Contracted Party proposes to conduct an Operation with Exclusive Risk, the Contracted Party shall submit such proposal to the Manager for approval, which shall only be vetoed in case its execution entails delay in the approved Annual Budget and Work Program of the Production Phase or poses any risk to the other Operations provided for this Agreement.
Procedure for proposing Operations with Exclusive Risks. Pursuant to the provisions in paragraphs 4.1 and 4.2, in case any Contracted Party proposes to conduct an Operation with Exclusive Risk, the Contracted Party shall submit such proposal to the Manager for approval, which shall only be vetoed in case its execution entails delay in the approved Budget and Work Program or poses any risk to the other Operations provided for this Agreement. The proposal shall specify the exclusive nature of the Operations and include the work to be carried out, as well as the location, objectives, and estimated cost thereof. After approval by the Manager, the proposing Contracted Party shall immediately notify the other Contracted Parties so that they express if they will adhere or not to the proposed Operation with Exclusive Risk. The Contractors intending to adhere to the Operation with Exclusive Risk shall notify the proposing Contractor and the Operator within ten (10) days of receipt of the notice proposing the Operation with Exclusive Risk. The Contractor’s absence of expression of adherence to the proposed Operation with Exclusive Risk by the end of the deadline established in paragraph Error: Reference source not found shall be interpreted as a refusal.
