Common use of Relinquishment Clause in Contracts

Relinquishment. 4.1 If at the end of the first Exploration Phase, the Contractor elects, pursuant to Article 3.4 to continue Exploration Operations in the Contract Area in the second Exploration Phase, the Contractor shall have the option to relinquish a part of Contract Area in simple geometrical shape. In case, the Contractor exercises its option to relinquish a part of the Contract Area in simple geometrical shape. In case, the Contractor excercises its option to relinquish a part of the Contract area at the end of first Exploration Phase, then such area to be relinquished shall not be less than twenty five percent (25%) of the original Contract Area and the Contractor shall be entitled to retain the balances area including any Development Area and Discovery Area in not more than three (3) areas of simple geometrical shapes. Notwithstanding the provision of this Article 4.1, the Contractor shall be permitted to retain the Development Areas and Discovery Areas in accordance with Article 3.4. 4.2 At the end of the second Exploration Phase, the Contractor shall retain only Development Areas and Discovery Areas. 4.3 If the Contractor exercises the option provided for in paragraph (b) of Article 3.4, the Contractor shall, after any Discovery Areas or Development Areas have been designated, relinquish all of the Contract Area not included within the said Discovery Areas or Development Areas. 4.4 As and when the Contract is terminated under the provisions of Article 3 or in accordance with any other provisions of this Contract, the entire Contract Area remaining with the Contractor shall be deemed to have been relinquished by the Contractor as on the date on which the Contract is terminated. 4.5 Relinquishment of all or part of the Contract Area or termination of the Contract shall not be construed as absolving the Contractor of any liability undertaken or incurred by the Contractor in respect of the Contract Area during the period between the Effective Date and the date of such relinquishment or termination. 4.7 Subject to Article 14.9, the liability of the Contractor shall be limited to any liability undertaken or incurred in respect of, relating to or connected with the Contract, and/or any claim arising out of or in relation to the act of negligence, misconduct, commission or omission in carrying out Petroleum Operations during the period between the Effective Date and the date of relinquishment of the Contract Area or termination or expiry of the Contract, as the case may be.

Relinquishment. 4.1 If at On or before the end of Phase-I of the Licence the Working Interest Owners shall relinquish not less than 30% of the original Area. 4.2 The Working Interest Owners shall relinquish an additional area equal to 20% of the original Area, on or before the end of the Phase-II. 4.3 The Working Interest Owners shall relinquish an additional area equal to 10% of the original Area, on or before the end of the first Exploration Phaserenewal. 4.4 Except as otherwise provided herein or in the Rules, the Contractor elects, pursuant to Article 3.4 to continue Exploration Operations in Working Interest Owners shall relinquish the Contract Area in the second Exploration Phase, the Contractor shall have the option to relinquish a part of Contract Area in simple geometrical shape. In case, the Contractor exercises its option to relinquish a part remainder of the Contract Area in simple geometrical shape. In caseoriginal Area, at the Contractor excercises its option to relinquish a part expiration of the Contract area at Licence, or final renewal thereof. 4.5 The shape of the end of first Exploration Phase, then such area Area to be relinquished shall not be less than twenty five percent determined by the Working Interest Owners, provided, however, that (25%a) the Working Interest Owners shall inform the Government of the original Contract Area description and the Contractor shall be entitled to retain the balances area including any Development Area and Discovery Area in not more than three (3) areas of simple geometrical shapes. Notwithstanding the provision of this Article 4.1, the Contractor shall be permitted to retain the Development Areas and Discovery Areas in accordance with Article 3.4. 4.2 At the end portion or portions of the second Exploration Phase, the Contractor shall retain only Development Areas and Discovery Areas. 4.3 If the Contractor exercises the option provided for Area to be relinquished at least ninety (90) Days in paragraph (b) advance of Article 3.4, the Contractor shall, after any Discovery Areas or Development Areas have been designated, relinquish all of the Contract Area not included within the said Discovery Areas or Development Areas. 4.4 As and when the Contract is terminated under the provisions of Article 3 or in accordance with any other provisions of this Contract, the entire Contract Area remaining with the Contractor shall be deemed to have been relinquished by the Contractor as on the date on which the Contract is terminated. 4.5 Relinquishment of all or part of the Contract Area or termination of the Contract shall not be construed as absolving the Contractor of any liability undertaken or incurred by the Contractor in respect of the Contract Area during the period between the Effective Date and the date of such relinquishment or termination. 4.7 Subject to Article 14.9, the liability of the Contractor shall be limited to any liability undertaken or incurred in respect of, relating to or connected with the Contract, and/or any claim arising out of or in relation to the act of negligence, misconduct, commission or omission in carrying out Petroleum Operations during the period between the Effective Date and the date of relinquishment or such lesser period as DGPC may allow, (b) the Working Interest Owners shall consult with the Director General, Petroleum Concessions, regarding the shape and size of each individual portion of the Contract Area or termination or expiry being relinquished and (c) the area being relinquished shall be of sufficient size and convenient shape (conforming to the grid system in force) to enable Petroleum operations to be conducted thereon. 4.6 Working Interest Owners shall not be obligated to relinquish, pursuant to Articles 4.1, 4.2 and 4.3, any part of the ContractArea which has been made subject to a Lease and for which an application for grant of a Lease has been submitted in accordance with the Rules. 4.7 Upon at least ninety (90) Days written notice to the Government, as the case may beWorking Interest Owners shall have the right to relinquish any portion of the Area, subject to Article 4.4 and Article VII and such portion can be credited against the mandatory relinquishments pursuant to Articles 4.1, 4.2 and 4.3. 4.8 Relinquishment made in accordance with this Article IV shall not relieve the Working Interest Owners of: (a) the obligations to make payments to the Government under the Rules and this Agreement prior to such relinquishment; and or (b) the Minimum Work and Minimum Expenditure obligations set out in Article III

Relinquishment. 4.1 If at On or before the end of the first Exploration PhaseInitial Term of the Licence, Contractor shall relinquish Sections representing not less than 20% of the Original Contract Area. 4.2 Contractor electsshall relinquish further Sections representing not less than 30% of the Original Contract Area, pursuant on or before the end of the First Renewal period of the Licence subject to Article 3.4 3.1(d) hereof. 4.3 Contractor shall relinquish further Sections representing to continue Exploration Operations in not less than 30% of the Original Contract Area in on or before the second Exploration Phaseend of the Second Renewal period of the Licence subject to Article 3.1(d) hereof. 4.4 Except as otherwise provided herein, the Contractor shall relinquish the remainder of the Original Contract Area, on or before the expiration of the Exploration Period. 4.5 The configuration of the Sections to be relinquished shall be determined by Contractor, provided, however, that: (a) Contractor shall inform the DGPC in writing at least ninety (90) Days in advance of the date of relinquishment, of the description and the portion or portions of the Original Contract Area to be relinquished; and (b) the Sections to be relinquished shall form not more than two (2) separate groups. Each group shall be a contiguous area of a compact nature whereby all Sections shall be connected and have in common at least on one of their sides of thirty (30) seconds longitude or latitude, subject to the option configuration of the Original Contract Area, and the longest east/west and north/south dimensions of a relinquished area are such as to establish a viable possible future Contract Area. 4.6 During the Initial Term and any renewal thereof, Contractor shall not be obliged to relinquish a part of Contract Area in simple geometrical shape. In case, the Contractor exercises its option to relinquish a any part of the Contract Area in simple geometrical shape. In casewhich has been made subject to an Appraisal Area or Development Area or Significant Gas Discovery Area. 4.7 Upon at least ninety (90) Days written notice to the DGPC, Contractor shall have the Contractor excercises its option right to relinquish a part Surrender any portion of the Contract area at Area. Such surrender shall comply with the end requirements of first Exploration Phase, then such area to be Article 4.5(b). Any acreage relinquished shall not be less than twenty five percent (25%) in excess of the original Contract Area relinquishments made pursuant to Articles 4.1 and 4.2 may be credited against the Contractor shall be entitled to retain relinquishment obligations for the balances area including any Development Area and Discovery Area in not more than three (3) areas of simple geometrical shapes. Notwithstanding the provision of this Article 4.1, the Contractor shall be permitted to retain the Development Areas and Discovery Areas in accordance with Article 3.4. 4.2 At the end of the second Exploration Phase, the Contractor shall retain only Development Areas and Discovery Areas. 4.3 If the Contractor exercises the option provided for in paragraph (b) of Article 3.4, the Contractor shall, after any Discovery Areas next Phase or Development Areas have been designated, relinquish all of the Contract Area not included within the said Discovery Areas or Development Areas. 4.4 As and when the Contract is terminated under the provisions of Article 3 or in accordance with any other provisions of this Contract, the entire Contract Area remaining with the Contractor shall be deemed to have been relinquished by the Contractor as on the date on which the Contract is terminated. 4.5 Relinquishment of all or part of the Contract Area or termination of the Contract shall not be construed as absolving the Contractor of any liability undertaken or incurred by the Contractor in respect of the Contract Area during the period between the Effective Date and the date of such relinquishment or termination. 4.7 Subject to Article 14.9, the liability of the Contractor shall be limited to any liability undertaken or incurred in respect of, relating to or connected with the Contract, and/or any claim arising out of or in relation to the act of negligence, misconduct, commission or omission in carrying out Petroleum Operations during the period between the Effective Date and the date of relinquishment of the Contract Area or termination or expiry of the Contract, Renewal as the case may be. 4.8 No relinquishment or Surrender made in accordance with this Article IV shall relieve Contractor of: (a) any obligations to make payments due prior to such relinquishment or Surrender, and (b) any other obligations under in this Agreement, that directly relate to the relinquished or Surrendered area. A relinquishment or Surrender during any Phase or Renewal shall not reduce the Minimum Work applicable to such Phase or Renewal.

Relinquishment. 4.1 5.1 Except as provided in Article 5.2, 8.3, 8.9, 14.9 and 14.11, Contractor’s rights and obligations in respect of relinquishing portions of the Contract Area shall be as provided hereafter. (a) Without prejudice to Article 5.5, Contractor shall be required to relinquish ten percent (10%) of the Contract Area on the expiration of the First Subperiod. If Contractor elects not to go into the Second Subperiod, then the Contractor shall relinquish the whole contract area. (b) If on or before the expiration of the Second Subperiod Contractor elects to enter into the First Extension Period pursuant to Article 3.1 then, subject to Article 5.2, at the commencement of the First Extension Period, Contractor shall relinquish fifteen percent (15%) of the retained area after the first relinquishment; (c) If at the end of the Second Extension Period Contractor benefits from the new Exploration Period of 10 years for Deep water, Contractor shall not be made to relinquish any further acreage falling in Deepwater if the Contractor elects to go into the three (3) year extension period. 5.2 The provisions of Article 5.1 shall not be read or construed as requiring Contractor to relinquish any portion of the Contract Area which constitutes or forms part of either a Discovery Area, Development Area; or Production Area provided, however that if at the end of the first Exploration PhaseSubperiod, Second Subperiod, First Extension Period or Second Extension Period as the case may be, Contractor elects not to enter the Second Subperiod, First Extension Period, Second Extension Period, Contractor shall relinquish entire Contract Area, other than any Discovery, Development Area and Production Area. 5.3 Each area to be relinquished pursuant to this Article 5 shall be selected by Contractor and shall be measured as far as possible in terms of continuous and compact units of a size and shape to permit the carrying out of Petroleum Operations in the relinquished portions. 5.4 Without prejudice to the foregoing provisions of this Article 5, in the event that, following the relinquishment of the Contract Area, the Contractor electshas retained one or more Development and Production Areas, pursuant and Contractor and GNPC have, after reviewing all the relevant technical data and information, determined that the field or reservoirs for which a Development and Production Area was granted covers Petroleum lying outside such Development and Production Area, and provided such outside areas are not under any contract, the Minister shall use his best endeavours to Article 3.4 to continue Exploration Operations in extend the relevant Development and Production Area (part of the Contract Area Area) to cover the areal extent of such reservoir or field; provided that Contractor provides technical evidence to show that the Petroleum accumulation lies under the area of extension so requested, and always in accordance with the second Exploration Phase, the Petroleum Law. 5.5 Contractor shall have the option right at any time to relinquish a part of Contract Area in simple geometrical shape. In case, the Contractor exercises its option to relinquish a part of the Contract Area in simple geometrical shape. In case, the Contractor excercises its option to relinquish a part of the Contract area at the end of first Exploration Phase, then such area to be relinquished shall not be less than twenty five percent (25%) of the original Contract Area and the Contractor shall be entitled to retain the balances area including any Development Area and Discovery Area in not more than three (3) areas of simple geometrical shapes. Notwithstanding the provision of this Article 4.1, the Contractor shall be permitted to retain the Development Areas and Discovery Areas in accordance with Article 3.4. 4.2 At the end of the second Exploration Phase, the Contractor shall retain only Development Areas and Discovery Areas. 4.3 If the Contractor exercises the option provided for in paragraph (b) of Article 3.4, the Contractor shall, after any Discovery Areas or Development Areas have been designated, relinquish all of the Contract Area not included within the said Discovery Areas or Development Areas. 4.4 As and when the Contract is terminated under the provisions of Article 3 or in accordance with any other provisions of this Contract, the entire Contract Area remaining with the Contractor shall be deemed to have been relinquished by the Contractor as on the date on which the Contract is terminated. 4.5 Relinquishment of all or part of the Contract Area or termination provided it has undertaken the work obligation of the Contract shall not be construed as absolving the Contractor of any liability undertaken Subperiod or incurred by the Contractor in respect of the Contract Area Extension Period during the period between the Effective Date and the date of which such relinquishment or terminationis made. 4.7 Subject to Article 14.9, the liability of the Contractor shall be limited to any liability undertaken or incurred in respect of, relating to or connected with the Contract, and/or any claim arising out of or in relation to the act of negligence, misconduct, commission or omission in carrying out Petroleum Operations during the period between the Effective Date and the date of relinquishment of the Contract Area or termination or expiry of the Contract, as the case may be.

Relinquishment. 4.1 If The first relinquishment will take place at the end of Phase-II, i.e. after completion of Market Surveys and Commitments Phase-II. 4.2 In the first Exploration Phase, the Contractor elects, pursuant to Article 3.4 to continue Exploration Operations in the Contract Area in the second Exploration Phaserelinquishment, the Contractor shall have the option to retain only Producing and Producible Areas and relinquish a part of Contract Area in simple geometrical shape. In case, the Contractor exercises its option to relinquish a part of the Contract Area in simple geometrical shape. In case, the Contractor excercises its option to relinquish a part of the Contract area at the end of first Exploration Phase, then such area to be relinquished shall not be less than twenty five percent (2520%) of the original Contract Area and the Contractor shall be entitled to retain the balances area including any Development Area and Discovery Area Area, in not more than three two (32) contiguous areas of simple geometrical shapes. Notwithstanding the provision of this . 4.3 Relinquishment provisions mentioned in Article 4.1, 4.2 above are negotiable and to be finalised and agreed to between the Contractor shall be permitted and the Government at the end of Phase-II in case of Block(s) where specific conditions relating to retain the Development Areas and Discovery Areas in accordance with Article 3.4exploration, warrant such variation on the recommendations of the Steering Committee. 4.2 At 4.4 The second and final relinquishment will take place at the end of the Development Phase (Phase-III). 4.5 In the second Exploration Phaseand final relinquishment, the Contractor shall retain only Development Producing Areas and Discovery AreasProducible Areas and relinquish the balance Area held by it. 4.3 4.6 If during the Contractor exercises Production Phase or before the option provided for expiry of the Contract, in paragraph (bthe opinion of the Contractor, the Field(s) of Article 3.4has/have been depleted or the production becomes uneconomical to produce, the Contractor shallis required to surrender the area then held by it/them and such a surrender of the area by the Contractor will be deemed to be the determination of the Contract. On such a surrender, after any Discovery Areas or Development Areas have been designated, relinquish all the Lease of the Contract Area not included within the said Discovery Areas or Development Areaswill be automatically cancelled. 4.4 As and when the Contract is terminated under the provisions of Article 3 or in accordance with any other provisions of this Contract, the entire Contract Area remaining with the Contractor shall be deemed to have been relinquished by the Contractor as on the date on which the Contract is terminated. 4.5 4.7 Relinquishment of all or part of the Contract Area Area, or termination termination/determination of the Contract shall not be construed as absolving the Contractor of any liability undertaken or incurred by or on behalf of the Contractor in respect of the Contract Area during the period between the Effective Date and prior to the date of such relinquishment relinquishment, surrender, termination or terminationdetermination. 4.7 4.8 Subject to Article 14.9Articles 14.9 and 21.3, the liability of the Contractor shall be limited to any liability undertaken or incurred by or on behalf of Contractor in respect of, of or relating to or connected with the Contract, and/or and / or any claim arising out of or in relation to the act of negligence, misconduct, commission or omission in carrying out Petroleum CBM Operations during the period between the Effective Date and the date of relinquishment relinquishment, surrender of the Contract Area or termination or expiry of the Contract, as the case may be.

Relinquishment. 4.1 If at the end 5.1 Except as provided in Article 8.3, 8.9, 14.9 and 14.14, Contractor shall relinquish portions of the first Exploration Phase, the Contractor elects, pursuant to Article 3.4 to continue Exploration Operations in the Contract Area in the second Exploration Phase, manner provided hereafter. a) If on or before the Contractor shall have the option to relinquish a part of Contract Area in simple geometrical shape. In case, the Contractor exercises its option to relinquish a part expiration of the Contract Area in simple geometrical shape. In caseInitial Exploration Period, Contractor elects to enter into the Contractor excercises its option First Extension Period pursuant to relinquish a part Article 3.1(c) then subject to Article 5.2 at the commencement of the Contract First Extension Period the area at the end of first Exploration Phase, then such area to retained shall be relinquished shall not be less than twenty five percent one hundred per cent (25100%) of the original Contract Area and as at the Effective Date; b) If on or before the expiration of the First Extension Period, Contractor elects to enter into the Second Extension Period pursuant to Article 3.1(c) then subject to Article 5.2 at the commencement of the Second Extension Period the area retained shall be entitled to retain not exceed fifty (50%) of the balances original Contract Area as at the Effective Date. Provided always that the area including any Development Area and Discovery Area in not more than three (3) areas of simple geometrical shapes. Notwithstanding the provision of this Article 4.1, the Contractor retained shall be permitted to retain exceed fifty percent (50%) of the Development Areas and Discovery Areas original Contract Area but not to exceed seventy-five percent (75%) of the original Contract Area in accordance with the event that at that time, the Contractor commits to the drilling of a total of two (2) or more xxxxx in the Second Extension Period in which case the provisions of Article 3.44.3(c) shall be deemed amended accordingly; c) On the expiration of the Second Extension Period, Contractor shall subject to Article 5.2 relinquish the remainder of the retained Contract Area. 4.2 At 5.2 The Provisions of Article 5.1 shall not be read or construed as requiring Contractor to relinquish any portion of the Contract Area which constitutes or forms part of either a Discovery Area or a Development and Production Area. PROVIDED HOWEVER THAT if at the end of the second Exploration PhaseFirst Subperiod, the Contractor shall retain only Development Areas and Discovery Areas. 4.3 If the Contractor exercises the option provided for in paragraph (b) of Article 3.4Second Subperiod, the Contractor shall, after any Discovery Areas First Extension Period or Development Areas have been designated, relinquish all of the Contract Area not included within the said Discovery Areas or Development Areas. 4.4 As and when the Contract is terminated under the provisions of Article 3 or in accordance with any other provisions of this Contract, the entire Contract Area remaining with the Contractor shall be deemed to have been relinquished by the Contractor as on the date on which the Contract is terminated. 4.5 Relinquishment of all or part of the Contract Area or termination of the Contract shall not be construed as absolving the Contractor of any liability undertaken or incurred by the Contractor in respect of the Contract Area during the period between the Effective Date and the date of such relinquishment or termination. 4.7 Subject to Article 14.9, the liability of the Contractor shall be limited to any liability undertaken or incurred in respect of, relating to or connected with the Contract, and/or any claim arising out of or in relation to the act of negligence, misconduct, commission or omission in carrying out Petroleum Operations during the period between the Effective Date and the date of relinquishment of the Contract Area or termination or expiry of the Contract, Second Extension Period as the case may be, Contractor elects not to enter into the Second Subperiod, the First Extension Period or the Second Extension Period, Contractor shall relinquish the entire Contract Area, other than any Discovery or Development and Production Area. 5.3 Each area to be relinquished pursuant to this Article shall be selected by Contractor and shall be measured as far as possible in terms of continuous and compact units of a size and shape which will permit the carrying out of Petroleum Operations in the relinquished portions. 5.4 Without prejudice to the foregoing provisions of this Article 5, in the event that, following the relinquishment of the Contract Area, the Contractor has retained one or more Development and Production Areas, and Contractor and GNPC have, after reviewing all the relevant technical data and information, determined that the field or reservoirs for which a Development and Production Area was granted covers Petroleum lying outside such Development and Production Area, and provided such outside areas are not under any contract, the Contractor and GNPC shall endeavour to reach an agreement on unitization between the Contractor (with respect to the Contract Area) and GNPC (as holder of the area outside of the Contract Area) to cover the full development of the reservoir or field.

Relinquishment. 4.1 If at On or before the end of the first Exploration PhaseInitial Term of the Licence, Contractor shall relinquish Sections representing not less than 20% of the Original Contract Area. 4.2 Contractor electsshall relinquish further Sections representing not less than 30% of the Original Contract Area, pursuant on or before the end of the First Renewal period of the Licence subject to Article 3.4 3.1(d) hereof. 4.3 Contractor shall relinquish further Sections representing to continue Exploration Operations in not less than 30% of the Original Contract Area in on or before the second Exploration Phaseend of the Second Renewal period of the Licence subject to Article 3.1(d) hereof. 4.4 Except as otherwise provided herein, the Contractor shall relinquish the remainder of the Original Contract Area, on or before the expiration of the Exploration Period. 4.5 The configuration of the Sections to be relinquished shall be determined by Contractor, provided, however, that: (a) Contractor shall inform the DGPC in writing at least ninety (90) Days in advance of the date of relinquishment, of the description and the portion or portions of the Original Contract Area to be relinquished; and (b) the Sections to be relinquished shall form not more than two (2) separate groups. Each group shall be a contiguous area of a compact nature whereby all Sections shall be connected and have in common at least on one of their sides of thirty (30) seconds longitude or latitude, subject to the option configuration of the Original Contract Area, and the longest east/west and north/south dimensions of a relinquished area are such as to establish a viable possible future Contract Area. 4.6 During the nI itial Term and any renewal thereof, Contractor shall not be obliged to relinquish a part of Contract Area in simple geometrical shape. In case, the Contractor exercises its option to relinquish a any part of the Contract Area in simple geometrical shape. In casewhich has been made subject to an Appraisal Area or Development Area or Significant Gas Discovery Area. 4.7 Upon at least ninety (90) Days written notice to the DGPC, Contractor shall have the Contractor excercises its option right to relinquish a part Surrender any portion of the Contract area at Area. Such surrender shall comply with the end requirements of first Exploration Phase, then such area to be Article 4.5(b). Any acreage relinquished shall not be less than twenty five percent (25%) in excess of the original Contract Area relinquishments made pursuant to Articles 4.1 and 4.2 may be credited against the Contractor shall be entitled to retain relinquishment obligations for the balances area including any Development Area and Discovery Area in not more than three (3) areas of simple geometrical shapes. Notwithstanding the provision of this Article 4.1, the Contractor shall be permitted to retain the Development Areas and Discovery Areas in accordance with Article 3.4. 4.2 At the end of the second Exploration Phase, the Contractor shall retain only Development Areas and Discovery Areas. 4.3 If the Contractor exercises the option provided for in paragraph (b) of Article 3.4, the Contractor shall, after any Discovery Areas next Phase or Development Areas have been designated, relinquish all of the Contract Area not included within the said Discovery Areas or Development Areas. 4.4 As and when the Contract is terminated under the provisions of Article 3 or in accordance with any other provisions of this Contract, the entire Contract Area remaining with the Contractor shall be deemed to have been relinquished by the Contractor as on the date on which the Contract is terminated. 4.5 Relinquishment of all or part of the Contract Area or termination of the Contract shall not be construed as absolving the Contractor of any liability undertaken or incurred by the Contractor in respect of the Contract Area during the period between the Effective Date and the date of such relinquishment or termination. 4.7 Subject to Article 14.9, the liability of the Contractor shall be limited to any liability undertaken or incurred in respect of, relating to or connected with the Contract, and/or any claim arising out of or in relation to the act of negligence, misconduct, commission or omission in carrying out Petroleum Operations during the period between the Effective Date and the date of relinquishment of the Contract Area or termination or expiry of the Contract, Renewal as the case may be. 4.8 No relinquishment or Surrender made in accordance with this Article IV shall relieve Contractor of: (a) any obligations to make payments due prior to such relinquishment or Surrender, and (b) any other obligations under in this Agreement, that directly relate to the relinquished or Surrendered area. A relinquishment or Surrender during any Phase or Renewal shall not reduce the Minimum Work applicable to such Phase or Renewal.

Relinquishment. 4.1 If at On or before the end of Phase-I of the Licence the Working Interest Owners shall relinquish not less than 30% of the original Area. 4.2 The Working Interest Owners shall relinquish an additional area equal to 20% of the remaining Area, on or before the end of the first Exploration Phase-II. 4.3 The Working Interest Owners shall relinquish an additional area equal to 10% of the remaining Area, on or before the start of the Second Renewal. Provided that the DGPC may on the request of the working interest owners allow retention of the licence area required to be relinquished under Article 4.1, 4.2 and 4.3, subject to the commitment by the working interest owners to undertake additional work units equivalent to ten (10) percent of the applicable percentage in Article 4.1, 4.2 and 4.3 respectively of the Phase-I committed work units. 4.4 Except as otherwise provided herein or in the Rules, the Contractor elects, pursuant to Article 3.4 to continue Exploration Operations in Working Interest Owners shall relinquish the Contract Area in the second Exploration Phase, the Contractor shall have the option to relinquish a part of Contract Area in simple geometrical shape. In case, the Contractor exercises its option to relinquish a part remainder of the Contract Area in simple geometrical shape. In caseoriginal Area, at the Contractor excercises its option to relinquish a part expiration of the Contract area at Licence, or final renewal thereof. 4.5 The shape of the end of first Exploration Phase, then such area Area to be relinquished shall not be less than twenty five percent determined by the Working Interest Owners, provided, however, that (25%a) the Working Interest Owners shall inform the DGPC of the original Contract Area description and the Contractor shall be entitled to retain the balances area including any Development Area and Discovery Area in not more than three (3) areas of simple geometrical shapes. Notwithstanding the provision of this Article 4.1, the Contractor shall be permitted to retain the Development Areas and Discovery Areas in accordance with Article 3.4. 4.2 At the end portion or portions of the second Exploration Phase, the Contractor shall retain only Development Areas and Discovery Areas. 4.3 If the Contractor exercises the option provided for Area to be relinquished at least ninety (90) Days in paragraph (b) advance of Article 3.4, the Contractor shall, after any Discovery Areas or Development Areas have been designated, relinquish all of the Contract Area not included within the said Discovery Areas or Development Areas. 4.4 As and when the Contract is terminated under the provisions of Article 3 or in accordance with any other provisions of this Contract, the entire Contract Area remaining with the Contractor shall be deemed to have been relinquished by the Contractor as on the date on which the Contract is terminated. 4.5 Relinquishment of all or part of the Contract Area or termination of the Contract shall not be construed as absolving the Contractor of any liability undertaken or incurred by the Contractor in respect of the Contract Area during the period between the Effective Date and the date of such relinquishment or termination. 4.7 Subject to Article 14.9, the liability of the Contractor shall be limited to any liability undertaken or incurred in respect of, relating to or connected with the Contract, and/or any claim arising out of or in relation to the act of negligence, misconduct, commission or omission in carrying out Petroleum Operations during the period between the Effective Date and the date of relinquishment or such lesser period as DGPC may allow, (b) the Working Interest Owners shall consult with the Director General Petroleum Concessions, regarding the shape and size of each individual portion of the Contract Area or termination or expiry being relinquished and (c) the area being relinquished shall be of sufficient size and convenient shape (conforming to the grid system in force) to enable Petroleum operations to be conducted thereon. 4.6 Working Interest Owners shall not be obligated to relinquish, pursuant to Articles 4.1 to 4.4, any part of the ContractArea which has been made subject to a Lease and for which an application for grant of a Lease has been submitted in accordance with the Rules. 4.7 Upon at least ninety (90) Days written notice to the DGPC, as the case may beWorking Interest Owners shall have the right to relinquish any portion of the Area, subject to Article 4.5 and Article 7 and such portion can be credited against the mandatory relinquishments pursuant to Articles 4.1, 4.2 and 4.3. 4.8 Relinquishment made in accordance with this Article 4 shall not relieve the Working Interest Owners of: (a) the obligations to make payments to the Government under the Rules and this Agreement prior to such relinquishment; and or (b) the Minimum Work and Minimum Expenditure obligations set out in Article 3.