Common use of Relinquishment of the Contract Area in the Exploration Phase Clause in Contracts

Relinquishment of the Contract Area in the Exploration Phase. Within sixty (60) days of the end of the Exploration Phase, the Contractors shall forward to ANP a plan for relinquishment of areas, prepared pursuant to the Applicable Laws and Regulations. The submission of the plan for relinquishment of areas does not entail any kind of acknowledgement or release by ANP nor exempt the Consortium Members from compliance with the Minimum Exploration Program. In the event of full or partial default of the Minimum Exploration Program, the Contractor may not proceed with the Production Phase and shall be required to pay to the Contracting Party the amount set forth in Annex II per activity defaulted, as compensatory penalty. The amount of the compensatory penalty per activity defaulted shall be automatically subject to inflation adjustment, on January 1 of each calendar year, at the variation of the General Price Index – Internal Availability (IGP-DI), published by Fundação Xxxxxxx Xxxxxx, for the immediately preceding year, except on January 1 immediately following publication of the tender protocol, when no update shall be made. The Contractor shall provide ANP with financial guarantees for the Minimum Exploration Program within the term established in the tender protocol, in an amount sufficient to cover the amount of the compensatory penalty for the activities initially committed. In case ANP approves the development of activities additional to the Minimum Exploration Program in consideration for the extension of the Exploration Phase, pursuant to paragraph 10.11, the Contractor shall provide financial guarantees corresponding to the estimated value of such additional activities, as set forth in the tender protocol, and duly updated under this Agreement. The financial guarantees provided shall be accompanied by a letter signed by all Contractors expressing full awareness of paragraphs 19.2 and 19.1 and of the fact that the obligations of the Minimum Exploration Program are not fractional, and each Contractor shall be jointly responsible for reimbursement in case of default. In case the Contractor does not provide the suitable financial guarantees, the Agreement shall be terminated regarding the areas that are not under Development. Contractor may submitted to ANP the following types of financial guarantee: letter of credit; bid bond; or Oil and Gas pledge agreement. The financial guarantees may be combined in order to total the amount guaranteed. The financial guarantees shall comply with the form indicated in the tender protocol. The financial guarantees may only be replaced or changed after approval by ANP. The financial guarantees shall be updated on an annual basis, under paragraph 11.2, and provided to ANP by January 31st of each calendar year, in order to reflect updating of the compensatory penalty for Units of Work not yet developed. The annual update of the guarantee is hereby waived if the type of guarantee provided already contains a clause for automatic inflation adjustment by the IGP-DI.

Relinquishment of the Contract Area in the Exploration Phase. Within sixty (60) days of the end of the Exploration Phase, the Contractors shall forward to ANP a plan for relinquishment of areas, prepared pursuant to the Applicable Laws and Regulations. The submission of the plan for relinquishment of areas does not entail any kind of acknowledgement or release by ANP nor exempt the Consortium Members from compliance with the Minimum Exploration Program. In the event of full or partial default of the Minimum Exploration Program, the Contractor may not proceed with the Production Phase and shall be required to pay to the Contracting Party the amount set forth in Annex ANNEX II per activity defaulted, as compensatory penalty. The amount of the compensatory penalty per activity defaulted shall be automatically subject to inflation adjustment, on January 1 1st of each calendar year, at the variation of the General Price Index – Internal Availability (IGP-DI), published by Fundação Xxxxxxx Xxxxxx, DI for the immediately preceding year, except on January 1 1st immediately following publication of the tender protocol, when no update shall be made. The Contractor shall provide ANP with financial guarantees for the Minimum Exploration Program within the term established in the tender protocol, in an amount sufficient to cover the amount of the compensatory penalty for the activities initially committed. In case ANP approves the development of activities additional to the Minimum Exploration Program in consideration for the extension of the Exploration Phase, pursuant to paragraph 10.1110.12, the Contractor shall provide financial guarantees corresponding to the estimated value of such additional activities, as set forth in the tender protocolTender Protocol, and duly updated under this Agreement. The financial guarantees provided shall presented must be accompanied by a letter signed by all the Contractors expressing full awareness knowledge of paragraphs paragraph 19.2 and 19.1 and of the fact that the obligations of the Minimum Exploration Exploratory Program are not fractionalindivisible, and each Contractor shall be jointly responsible and severally liable for reimbursement compensation in case the event of defaultits non-compliance. In case the Contractor does not provide the suitable adequate financial guarantees, the Agreement shall Contract will be terminated regarding the in relation to areas that are not under in Development. Contractor may submitted to ANP the following types of financial guarantee: letter of credit; bid bond; or Oil and Gas pledge agreement. The financial guarantees may be combined in order to total the amount guaranteed. The financial guarantees shall comply with the form indicated in the tender protocol. The financial guarantees may only be replaced or changed after approval by ANP. The financial guarantees shall be updated on an annual basis, under paragraph 11.2, and provided to ANP by January 31st of each calendar year, in order to reflect updating of the compensatory penalty for Units of Work not yet developed. The annual update of the guarantee is hereby waived if the type of guarantee provided already contains a clause for automatic inflation adjustment by the IGP-DI.

Relinquishment of the Contract Area in the Exploration Phase. Within sixty (60) days of the end of the Exploration Phase, the Contractors shall forward to ANP a plan for relinquishment of areas, prepared pursuant to the Applicable Laws and Regulations. The submission of the plan for relinquishment of areas does not entail any kind of acknowledgement or release by ANP nor exempt the Consortium Members from compliance with the Minimum Exploration Program. In the event of full or partial default of the Minimum Exploration Program, the Contractor may not proceed with the Production Phase and shall be required to pay to the Contracting Party the amount set forth in Annex ANNEX II per activity defaulted, as compensatory penalty. The amount of the compensatory penalty per activity defaulted shall be automatically subject to inflation adjustment, on January 1 1st of each calendar year, at the variation of the General Price Index – Internal Availability (IGP-DI), published by Fundação Xxxxxxx Xxxxxx, DI for the immediately preceding year, except on January 1 1st immediately following publication of the tender protocol, when no update shall be made. The Contractor shall provide ANP with financial guarantees for the Minimum Exploration Program within the term established in the tender protocol, in an amount sufficient to cover the amount of the compensatory penalty for the activities initially committed. In case ANP approves the development of activities additional to the Minimum Exploration Program in consideration for the extension of the Exploration Phase, pursuant to paragraph 10.1110.12, the Contractor shall provide financial guarantees corresponding to the estimated value of such additional activities, as set forth in the tender protocolTender Protocol, and duly updated under this Agreement. The financial guarantees provided shall be accompanied by a letter signed by all Contractors expressing full awareness of paragraphs paragraph 19.2 and 19.1 and of the fact that the obligations of the Minimum Exploration Program are not fractional, and each Contractor shall be jointly responsible for reimbursement in case of default. In case the Contractor does not provide the suitable financial guarantees, the Agreement shall be terminated regarding the areas that are not under Development. Contractor may submitted to ANP the following types of financial guarantee: letter of credit; bid bond; or Oil and Gas pledge agreement. The financial guarantees may be combined in order to total the amount guaranteed. The financial guarantees shall comply with the form indicated in the tender protocol. The financial guarantees may only be replaced or changed after approval by ANP. The financial guarantees shall be updated on an annual basis, under paragraph 11.2, and provided to ANP by January 31st of each calendar year, in order to reflect updating of the compensatory penalty for Units of Work not yet developed. The annual update of the guarantee is hereby waived if the type of guarantee provided already contains a clause for automatic inflation adjustment by the IGP-DI.