Common use of SCOPE OF THE AGREEMENT, INTERESTS OF THE PARTIES AND CONTRACT AREA Clause in Contracts

SCOPE OF THE AGREEMENT, INTERESTS OF THE PARTIES AND CONTRACT AREA. 2.1 This Agreement provides for the Exploration for and Development and Production of Petroleum in the Contract Area by GNPC in association with Contractor. 2.2 Subject to the provisions of this Agreement, Contractor shall be responsible for the execution of such Petroleum Operations as are required by the provisions of this Agreement and subject to Article 9, is hereby appointed the exclusive entity to conduct Petroleum Operations in the Contract Area. GNPC shall at all times participate in the management of Petroleum Operations and in order that the Parties may cooperate in the implementation of Petroleum Operations GNPC and Contractor shall establish a Joint Management Committee, to conduct and manage Petroleum Operations. 2.3 In the event that no Commercial Discovery is made in the Contract Area, or that Gross Production achieved from the Contract Area is insufficient fully to reimburse Contractor in accordance with the terms of this Agreement, then Contractor shall bear its own loss; GNPC and the State shall have no obligations whatsoever to contractor in respect of such loss. 2.4 GNPC shall have a ten percent (10%) Initial Interest in all Petroleum Operations under this Agreement. With respect to all Exploration and Development Operations GNPC’s Initial Interest shall be a Carried Interest. With respect to all Production Operations GNPC’s Initial Interest shall be a Paying Interest. 2.5 GNPC shall have the option to acquire an Additional Interest of five percent (5%) in every Commercial Discovery. In order to acquire the Additional Interest, GNPC must notify Contractor within ninety (90) days after Contractor’s notice to the Minister that a Discovery is a Commercial Discovery, of its intention to acquire the Additional Interest. If within such ninety (90) day period GNPC does not give such notice, GNPC’s interest will remain as described in Article 2.

SCOPE OF THE AGREEMENT, INTERESTS OF THE PARTIES AND CONTRACT AREA. 2.1 This Agreement provides for the Exploration for and Development and Production of Petroleum in the Contract Area by GNPC in association with Contractor. 2.2 Subject to the provisions of this Agreement, Contractor shall be responsible for the execution of such Petroleum Operations as are required by the provisions of this Agreement and subject to Article 9, is hereby appointed the exclusive entity to conduct Petroleum Operations in the Contract Area. GNPC shall at all times participate in the management of Petroleum Operations and in order that the Parties may cooperate in the implementation of Petroleum Operations GNPC and Contractor shall establish a Joint Management Committee, to conduct and manage Petroleum Operations. 2.3 In the event that no Commercial Discovery is made in the Contract Area, or that Gross Production achieved from the Contract Area is insufficient fully to reimburse Contractor in accordance with the terms of this Agreement, then Contractor shall bear its own loss; GNPC and the State shall have no obligations whatsoever to contractor in respect of such loss. 2.4 GNPC shall have a ten percent (10%) Initial Interest in all Petroleum Operations under this Agreement. With respect to all Exploration and Development Operations GNPC’s 's Initial Interest shall be a Carried Interest. With respect to all Production Operations GNPC’s ' s Initial Interest shall be a Paying Interestpaid interest. 2.5 In addition to the Initial Interest provided for in Article 2.4, GNPC shall have the option in respect of each Development and Production Area to acquire contribute a proportionate share not exceeding % of all Development and Production Costs in respect of such Development and Production Area, or make arrangements satisfactory to Contractor to that effect) thereby acquiring an Additional Additiona l Interest of five percent (5%) up to % in every Commercial DiscoveryPetroleum Operations in su ch Development and Production Area. In order to acquire the Additional Interest, GNPC must shall notify Contractor of its option within ninety (90) days after Contractor’s notice to of the Minister that a Discovery is a Date of Commercial Discovery, of its intention . 2.6 If GNPC opts to acquire the take an Additional Interest. If within such ninety (90) day period GNPC does not give such notice, GNPC’s interest will remain Interest as described provided for in Article 2..5 then within six (6) months of its election, GNPC shall reimburse Contractor for all expenditure attributable to GNPC 's Additional Interest and incurred from the Date of Commercial Discovery to the date GNPC notifies Contractor of its election. 2.7 For the avoidance of doubt GNPC shall only be liable to contribute to Petroleum Costs: a) incurred in respect of Development Operations in any Development and Production Area and to the extent only of any Additional Interest acquired in such Development and Production Area under Article 2.5; and b) incurred in respect of Production Operations in any Development and Production Area both to the extent of: i) its ten percent (10%) Initial Interest; and ii) any Additional Interest acquired in such development and Production Area under Article 2.5 2.8 GNPC may during the Exploration Period contribute to the seismic and exploratory drilling programmes as specified in Article 4.3 b providing relevant services. Upon completion of the work associated with said contribution, GNPC shall earn credit for the costs incurred toward its share, if any, of Development Costs, should it elect to hold an Additional Participating Interest pursuant to Article 2.5 above. Such credit shall carry interest at the Specified Rate annually from the respective dates such contributed costs were in. curred until they are utilised as credits toward GNPC' s Additional Participating Interest pursuant to article 2.5 above. If during the Exploration Period GNPC has earned such credit and if GNPC elects not to hold an Additional Participating Interest or no Commercial Discovery is made in the Contract Area, Contractor shall reimburse GNPC in an amount equivalent to the credit within sixty (60) days following the end of the Exploration Period or Contractor's relinquishment of the entire Contract Area, whichever first occurs. The actual amount of any credit earned by GNPC shall be the fair market rates at which such services could be obtained under freely competitive conditions at the time e they were performed. 2.9 Upon notifying Contractor of its decision to acquire an additional participating Interest pursuant to Article 2.5, GNPC may at the same time: a) elect to have Contractor advance part or all of GNPUs total proportionate share of Development Costs as they are incurred, including such Costs as will already have been incurred from the Date of Commercial Discovery and which are reimbursable under Article 2.8, plus the amount payable by GNPC under Article 2.8, less the credit and Interest thereon referred to in Article 2.8. Contractor shall then show the credits and interest as offsets to its cash calls to GNPC under the Accounting Guide until they are exhausted. Such advances shall be reimbursed with interest at the Specified Rate from GNPC's entitlement after recovery of Production Costs as provided in Article 10; and b) notify Contractor of any arrangements acceptable to Contractor for the payment of the balance of GNPC's total proportionate share of Development Costs less the aforesaid credits and interest. 2.10 Contractor's participating Interest in all Petroleum Operations and in all rights under this Agreement shall be ninety per cent (90%), reduced proportionately at any given time and in any given part of the Contract Area by the participating Interest of GNPC pursuant to Article 2.5 or the Sole Risk Interest of GNPC pursuant to Article 9. 2.11 As of the Effective Date, the Contract Area shall cover a total of approximately as depicted by Annex one and shall from time to time during the term of this Agreement

SCOPE OF THE AGREEMENT, INTERESTS OF THE PARTIES AND CONTRACT AREA. 2.1 This Agreement provides for the Exploration for and Exploration, Development and Production of Petroleum in the Contract Area by GNPC in association with Contractor. 2.2 Subject to the provisions of this Agreement, Contractor shall be responsible for the execution of such Petroleum Operations as are required by the provisions of this Agreement and subject to Article 9, is hereby appointed the exclusive entity to conduct Petroleum Operations in the Contract Area. GNPC shall at all times participate in the management of Petroleum Operations and in order that the Parties may cooperate in the implementation of Petroleum Operations Operations, GNPC and Contractor shall establish a Joint Management Committee, to conduct and manage Petroleum Operations. 2.3 In the event that no Commercial Discovery is made in the Contract Area, or that Gross Production achieved from the Contract Area is insufficient fully to reimburse Contractor in accordance with the terms of this Agreement, then Contractor shall bear its own loss; GNPC and the State shall have no obligations whatsoever to contractor Contractor in respect of such loss. 2.4 Subject to Article 2.6 GNPC shall have a ten percent (10%) Initial Participating Interest in all Petroleum Operations under this Agreement. With respect to all Exploration and Development Operations Operations, GNPC’s Initial Participating Interest shall be a Carried Interest. With respect to all Production Operations Operations, GNPC’s Initial Participating Interest shall be a Paying Interest. 2.5 For the avoidance of doubt, GNPC shall only be liable to contribute to Petroleum Costs incurred in respect of Production Operations in any Development and Production Area to the extent of its ten percent (10%) Participating Interest; 2.6 GNPC shall have the option to acquire an Additional Paying Interest of five two and one half percent (5%2 1/2) in every a Commercial Discovery. In order to acquire the Additional Interest, Interest GNPC must notify Contractor within ninety sixty (9060) days after of Contractor’s notice to the Minister that a Discovery is a Commercial Discovery, Discovery of its intention to acquire the Additional Interest. If within such ninety (90) day period the 60 days GNPC does not give such notice, GNPC’s interest will remain as described in Article 2.