Common use of Sole Risk Drilling Clause in Contracts

Sole Risk Drilling. 7.3.1 No Sole Risk Drilling under Article 7.2.2 (a)(i) or (ii) may be proposed unless: (a) Such drilling was proposed to the Operating Committee at the time of the consideration of the current exploration and appraisal Programme and Budget (hereinafter referred to in this Article 7 as "work Programme and Budget") or at the time of consideration of any revision thereto, but was not included in such work Programme and Budget; or (b) Having been included in the current work Programme and Budget, the Operating Committee has voted against or failed to vote in favour of an AFE (or the relevant part thereof) relating to such drilling within the period specified by the Operator for consideration of the AFE pursuant to Article 5 provided that a decision by the Operating Committee to change the timing of such drilling within the Year to which the current work Programme and Budget relates shall not be a vote against the AFE for the purpose of this Article 7.3.1 (b); or (c) Such drilling was proposed to the Operating Committee in reasonably sufficient detail by way of amendment to an AFE and/or the current work Programme and Budget and the Operating Committee has voted against or failed to vote in favour of such drilling within sixty (60) days of submission of such amendment to the Parties. 7.3.2 No Sole Risk Drilling under Article 7.2.2(a)(iv) may be proposed unless: (a) Such drilling was proposed to the Operating Committee at the time of its consideration of the current work Programme and Budget, or at the time of consideration of any revision thereto, but was not included in such work Programme and Budget and the Operating Committee has not instructed the Operator to prepare a development Programme and Budget in respect of the Discovery; or (b) The Operating Committee has abandoned or completed its appraisal programme of the interpreted closure of any geological structure or stratigraphic trap on which a well has been drilled in which a Discovery was made and the Operating Committee has voted against, or failed to vote in favour of, a proposal to instruct the Operator to prepare a development Programme and Budget in respect thereof and no Party has given notice under Article 7.5.1 that it intends to prepare such a development Programme and Budget. 7.3.3 Subject to Articles 7.3.1 and 7.3.2 if a Party wishes to propose Sole Risk Drilling under Article 7.2.2(a)(i), (ii) or (iv) it shall give notice to the other Parties setting out: (a) The proposed location of such drilling; and (b) All other relevant information including, but not limited to, the date on which it proposes that operations should be started, such date being not less than sixty (60) nor more than one hundred and eighty (180) days from the date of the notice. Each of the Parties receiving such notice shall respond to the other Parties within twenty-eight (28) days thereof, electing whether or not to participate. Any Party failing to respond within the said twenty-eight (28) days shall be deemed to have elected not to participate. 7.3.4 If a Party wishes to propose Sole Risk Drilling under Article 7.2.2(a)(iii), such Party shall give as much notice as possible to the other Parties prior to the proposed commencement of such Sole Risk Drilling, stating whether it wishes to use Joint Property for such Sole Risk Drilling (and, if so, what items thereof) and setting out such relevant information as is necessary in order to allow the other Parties to consider the proposal and elect whether or not to participate within the period hereinafter specified. Each of the Parties receiving such a notice shall respond to it, by notice to the other Parties, within forty-eight (48) hours thereof (or within such longer period as may be specified in the notice), electing whether or not to participate. Any Party failing to respond within the said period shall be deemed to have elected not to participate. 7.3.5 If the Percentage Interests of the Parties electing to participate together with the Percentage Interest of the Party proposing the Sole Risk Drilling are not less than the pass-mark provided under Article 4.7.2, the operations shall be carried out, in accordance with the said notice, by the Operator as part of the Joint Operations as if determined by the Operating Committee and, if appropriate, the current work Programme shall be deemed amended accordingly and the Operator shall promptly notify the Parties of the consequential amendments to the current Budget. 7.3.6 If the Percentage Interests of the Parties electing to participate together with the Percentage Interest of the Party proposing the Sole Risk Drilling are less than the pass- mark provided under Article 4.7.2 then, subject always to Article 7.2.8 and subject also to the provisos to Article 7.2.2(a)(ii) or (iii) in the case of Sole Risk Drilling there under, within twenty-eight (28) days following the expiration of the said notice the Sole Risk Party may require the Operator to undertake the Sole Risk Drilling. In such event, if the same arose as a result of the Operating Committee voting against or failing to vote in favour of an AFE under a current work Programme and Budget, such work Programme shall be deemed amended accordingly and the Operator shall notify the Parties of the consequential amendments to the current Budget. In the case of a notice given under Article 7.3.3, the Sole Risk Drilling may not be commenced later than one hundred and eighty (180) days following such notice and, in the case of a notice given under Article 7.3.4, the Sole Risk Drilling may be commenced as soon as it is possible to do so without interference to the Joint Operations on that well.

Sole Risk Drilling. 7.3.1 8.3.1 No Sole Risk Drilling under Article 7.2.2 (a)(iClause 8.2.2(i)(a) or (iib) may be proposed unless: (ai) Such such drilling was proposed to the Operating Management Committee at the time of the consideration of the current exploration and appraisal Programme and Budget (hereinafter referred to in this Article 7 as "work Programme and Budget") or at the time of consideration of any revision thereto, but was not included in such work Programme and BudgetProgramme; or (bii) Having having been included in the current work exploration Programme and Budget, the Operating Management Committee has voted against or failed to vote in favour of an AFE (or the relevant part thereof) relating to such drilling within thirty (30) days of submission of such AFE ("Authority for Expenditure") to the period specified by the Operator for consideration of the AFE pursuant to Article 5 other Parties provided that a decision by the Operating Management Committee to change the timing of such drilling within the Year to which the current work exploration Programme and Budget relates shall not be a vote against the AFE for the purpose of this Article 7.3.1 (bClause 8.3.1(ii); or (ciii) Such such drilling was proposed to the Operating Management Committee in reasonably sufficient detail by way of amendment to an AFE and/or the current work exploration Programme and Budget and the Operating Management Committee has voted against or failed to vote in favour of such drilling within sixty (60) days of submission of such amendment to the Parties. 7.3.2 8.3.2 No Sole Risk Drilling under Article 7.2.2(a)(iv8.2.2(i)(d) may be proposed unless: (ai) Such drilling was proposed the Managing Committee has voted against or failed to the Operating Committee at the time of its consideration vote in favour of the current work Programme and Budget, or at the time proposed preparation of consideration of any revision thereto, but was not included in such work Programme and Budget and the Operating Committee has not instructed the Operator to prepare a development an appraisal Programme and Budget in respect of the Discovery; or (b) The Operating Committee has abandoned or completed its appraisal programme of the interpreted closure of any geological structure or stratigraphic trap on which a well has been drilled in which a Discovery was made Petroleum has been found to be present, or, after the submission of such an appraisal Programme and the Operating Committee Budget, has voted against, against or failed to vote in favour of, of such Programme and Budget within sixty (60) days of its submission to the Parties; or (ii) the Management Committee has abandoned or completed its appraisal Programme of the interpreted closure of any geological structure or stratigraphic trap on which a well has been drilled in which Petroleum has been found to be present and the Managing Committee has voted against or failed to vote in favour of a proposal to instruct for the Operator to prepare preparation of a development Development Programme and Budget in respect thereof and no Party has given notice under Article 7.5.1 8.5.1 that it intends to prepare such a development Development Programme and Budget. 7.3.3 8.3.3 Subject to Articles 7.3.1 Article 8.3.1 and 7.3.2 8.3.2 if a Party wishes to propose Sole Risk Drilling under Article 7.2.2(a)(i8.2.2(i)(a), (iib) or (ivd) it shall give notice to the other Parties setting out: (ai) The the proposed location of such drilling; and; (bii) All all other relevant information including, but not limited to, the date on which it proposes that operations should be started, such date being not less than sixty (60) nor or more than one hundred and eighty (180) days from the date of the notice. Each of the Parties receiving such notice shall respond to the other Parties within twenty-eight ; and (28iii) days thereof, electing whether or not to participate. Any Party failing to respond within the said twenty-eight (28) days shall be deemed to have elected not to participate. 7.3.4 If a Party wishes to propose Sole Risk Drilling under Article 7.2.2(a)(iii), such Party shall give as much notice as possible to the other Parties prior to the proposed commencement of such Sole Risk Drilling, stating whether it wishes to use Joint Property for such Sole Risk Drilling (and, if so, what items thereof). Each of the Parties receiving such a notice shall respond to it, by notice to the other Parties, within thirty (30) and days thereof, electing whether or not to participate. Any Party failing to respond within the said thirty (30) days shall be deemed to have elected not to participate. 8.3.4 If a Party wishes to propose Sole Risk Drilling under Clause 8.2.2(i)(c), such Party shall give as much notice as possible to the other Parties setting out such relevant information as is necessary in order to allow the other Parties to consider the proposal and elect whether or not to participate within the period hereinafter specified. Each of the Parties receiving such a notice shall respond to it, by notice to the other Parties, within forty-eight (48) hours thereof (or within such longer period as may be specified in the notice), electing whether or not to participate. Any Party failing to respond within the said period shall be deemed to have elected not to participate. 7.3.5 8.3.5 If the Percentage Interests of the Parties electing to participate together with the Percentage Interest of the Party proposing the Sole Risk Drilling are not less than the pass-mark percentage provided under Article 4.7.25.3 the Party proposing the Sole Risk Drilling together with any other Parties which have elected to participate may, subject to the operations shall be carried outconditions of Article 8.2.2(i)(b) or (c) in the case of Sole Risk Drilling thereunder, in accordance with within thirty (30) days following the expiration of the said notice, by request the Operator (subject to Article 8.2.8) to undertake the Sole Risk Drilling. In such event, if the same arose as part a result of the Joint Operations as if determined by the Operating Management Committee andvoting against, if appropriateor failing to vote in favour of an AFE under, the a current work exploration Programme, such Programme shall be deemed amended accordingly and the Operator shall promptly notify the Parties of the consequential amendments to the current Budget. 7.3.6 If the Percentage Interests of the Parties electing to participate together with the Percentage Interest of the Party proposing the Sole Risk Drilling are less than the pass- mark provided under Article 4.7.2 then, subject always to Article 7.2.8 and subject also to the provisos to Article 7.2.2(a)(ii) or (iii) in the case of Sole Risk Drilling there under, within twenty-eight (28) days following the expiration of the said notice the Sole Risk Party may require the Operator to undertake the Sole Risk Drilling. In such event, if the same arose as a result of the Operating Committee voting against or failing to vote in favour of an AFE under a current work Programme and Budget, such work Programme shall be deemed amended accordingly and the Operator shall notify the Parties of the consequential amendments to the current exploration Budget. In the case of a notice given under Article 7.3.38.3.3, the Sole Risk Drilling may not be commenced later than one hundred and eighty (180) days following such notice and, in the case of a notice given under Article 7.3.48.3.4, the Sole Risk Drilling may be commenced as soon as it is possible to do so without interference to the Joint Operations on that well.

Sole Risk Drilling. 7.3.1 12.3.1 No Sole Risk Drilling under Article 7.2.2 (a)(iClause 12.2.2(i)(a) or (iib) may be proposed unless: (ai) Such such drilling was proposed to the Joint Operating Committee at the time of the consideration of the current exploration and appraisal Programme and Budget (hereinafter referred to in this Article 7 as "work Programme and Budget") or at the time of consideration of any revision thereto, but was not included in such work Programme and BudgetProgramme; or (bii) Having having been included in the current work exploration Programme and Budget, the Joint Operating Committee has voted against or failed to vote in favour of an AFE (or the relevant part thereof) relating to such drilling within twenty-eight (28) days of submission of such AFE to the period specified by the Operator for consideration of the AFE pursuant to Article 5 Participants provided that a decision by the Operating Committee Determination to change the timing of such drilling within the Year to which the current work exploration Programme and Budget relates shall not be a vote against the AFE for the purpose purposes of this Article 7.3.1 Clause 12.3.1 (bii); or (ciii) Such such drilling was proposed to the Joint Operating Committee in reasonably sufficient detail by way of amendment to an AFE and/or the current work exploration Programme and Budget and the Joint Operating Committee has voted against or failed to vote in favour of such drilling within sixty (60) days of submission of such amendment to the PartiesParticipants. 7.3.2 12.3.2 No Sole Risk Drilling under Article 7.2.2(a)(ivClause 12.2.2 (i)(d) may be proposed unless: (ai) Such drilling was proposed to the Operating Committee at the time of its consideration of the current work Programme and Budget, or at the time of consideration of any revision thereto, but was not included in such work Programme and Budget and the Joint Operating Committee has not instructed voted against or failed to vote in favour of a proposal to instruct the Operator to prepare a development an appraisal Programme and Budget in respect of the Discovery; or (b) The Operating Committee has abandoned or completed its appraisal programme of the interpreted closure of any geological structure or stratigraphic trap on which a well has been drilled in which a Discovery was made and Petroleum has been found to be present or, having so instructed the Operating Committee Operator, has voted against, against or failed to vote in favour of, of such a Programme within sixty (60) days of its submission to the Participants; or (ii) the Joint Operating Committee has abandoned or completed its appraisal Programme of the interpreted closure of any geological structure or stratigraphic trap on which a well has been drilled in which Petroleum has been found to be present and the Joint Operating Committee has voted against or failed to vote in favour of a proposal to instruct the Operator to prepare a development Programme and Budget in respect thereof and no Party Participant has given notice under Article 7.5.1 Clause 12.5.1 that it intends to prepare such a development Programme and BudgetProgramme. 7.3.3 12.3.3 Subject to Articles 7.3.1 Clauses 12.3.1 and 7.3.2 12.3.2 if a Party Participant wishes to propose Sole Risk Drilling under Article 7.2.2(a)(iClause 12.2.2 (i)(a), (iib) or (ivd) it shall give notice to the other Parties Participants setting out: (ai) The the proposed surface and bottom hole location of such drilling; and and (b) All ii)all other relevant information including, including but not limited toto the work to be performed, proposed depth, objective formation, the casing programme, if any, the drilling rig to be used, a properly itemised estimated cost of the operations and the date on which it proposes that operations should be started, such date being not less than sixty (60) nor more than one hundred and eighty (180) days from the date of the notice. Each of the Parties Participants receiving such a notice shall respond to it, by notice to the other Parties Participants, within twenty-eight (28) days thereof, electing whether or not to participate. Any Party Participant failing to respond within the said twenty-eight (28) days shall be deemed to have elected not to participate. 7.3.4 12.3.4 If a Party Participant wishes to propose Sole Risk Drilling under Article 7.2.2(a)(iiiClause 12.2.2(i)(c), such Party Participant shall give as much notice as possible to the other Parties prior to the proposed commencement of such Sole Risk Drilling, Participants stating whether it wishes to use Joint Property for such Sole Risk Drilling (and, if so, what items thereof) and setting out such relevant information as is necessary in order to allow the other Parties Participants to consider the proposal and elect whether or not to participate within the period hereinafter specified. Each of the Parties Participants receiving such a notice shall respond to it, by notice to the other PartiesParticipants, within forty-eight (48) hours thereof (or within such longer period as may be specified in the notice), electing whether or not to participate. Any Party Participant failing to respond within the said period shall be deemed to have elected not to participate. 7.3.5 12.3.5 If the Percentage Interests Interest of the Parties Participants electing to participate together with the Percentage Interest of the Party Participant proposing the Sole Risk Drilling are not less than the pass-mark percentage provided under Article 4.7.2Clause 8.8.2, the operations shall be carried out, in accordance with the said notice, by the Operator as part of the Joint Operations as if determined by the Operating Committee Determined and, if appropriate, the current work relevant Programme shall be deemed amended accordingly and the Operator shall promptly notify the Parties Participants of the consequential amendments to the current relevant Budget. 7.3.6 12.3.6 If the Percentage Interests of the Parties Participants electing to participate together with the Percentage Interest of the Party Participant proposing the Sole Risk Drilling are less than the pass- mark percentage provided under Article 4.7.2 thenClause 8.8.2 such Participant together with any other Participants which have elected to participate may, subject always to Article 7.2.8 and subject also to the provisos to Article 7.2.2(a)(iiprovisions of Clause 12.2.2 (i)(b) or (iiic) in the case of Sole Risk Drilling there underthereunder, within twenty-eight (28) days following the expiration of the said notice the Sole Risk Party may require the Operator to undertake the Sole Risk Drilling. In such event, if the same arose as a result of the Operating Committee voting against or failing to vote in favour of an AFE under a current work Programme and Budget, such work Programme shall be deemed amended accordingly and the Operator shall notify the Parties of the consequential amendments to the current Budget. In the case of a notice given under Article 7.3.3, the Sole Risk Drilling may not be commenced later than one hundred and eighty (180) days following such notice and, in the case of a notice given under Article 7.3.4, the Sole Risk Drilling may be commenced as soon as it is possible to do so without interference to the Joint Operations on that well.twenty eight

Sole Risk Drilling. 7.3.1 (A) No Sole Risk Drilling under Article 7.2.2 (a)(i7(2)(B)(1)(i) or (ii) may be proposed unless: (a1) Such such drilling was proposed to the Operating Committee at the time of the consideration of the exploration Program for the period in which such drilling is proposed to take place (the “current exploration and appraisal Programme and Budget (hereinafter referred to in this Article 7 as "work Programme and Budget"Program”) or at the time of consideration of any revision thereto, but was not included in such work Programme and Budgetprogram; or (b2) Having having been included in the current work Programme and Budget, exploration Program the Operating Committee has voted against or failed to vote in favour favor of an such drilling, or the Parties have failed to approve the applicable AFE (or the relevant part thereof) relating to such drilling within fourteen (14) days of submission of such AFE to the period specified by the Operator for consideration of the AFE pursuant to Article 5 Parties, provided that a decision by the Operating Committee to change the timing of such drilling within the Year to which the current work Programme and Budget such exploration Program relates shall not be a vote against the AFE drilling for the purpose of this Article 7.3.1 (b)Article; or (c3) Such such drilling was proposed to the Operating Committee in reasonably sufficient detail by way of amendment to an AFE and/or the current work Programme and Budget exploration Program and the Operating Committee has voted against or failed to vote in favour favor of such drilling within sixty thirty (6030) days of submission of such amendment to the Parties. 7.3.2 (B) No Sole Risk Drilling under Article 7.2.2(a)(iv7.2(B)(1)(iv) may be proposed unless: (a1) Such drilling was proposed to the Operating Committee at the time of its consideration of the current work Programme and Budget, or at the time of consideration of any revision thereto, but was not included in such work Programme and Budget and the Operating Committee has not instructed voted against a proposal to instruct the Operator to prepare a development Programme and Budget an appraisal program in respect of the Discovery; or (b) The Operating Committee has abandoned or completed its appraisal programme of the interpreted closure of any geological structure or stratigraphic trap on which a well has been drilled in which a Discovery was has been made or, having so instructed the Operator, has voted against such Appraisal Well or the Parties have failed to approve the AFE in respect thereof within fourteen (14) days of its submission to the Parties; or (2) the Operating Committee has abandoned or completed its appraisal program of the interpreted closure of any geological structure or stratigraphic trap in which a Discovery has been made and the Operating Committee has voted against, against or failed to vote in favour of, favor of a proposal to instruct the Operator to prepare a development Programme and Budget Development Program in respect thereof thereof, or having so instructed the Operator, has voted against or failed to vote in favor of such an Appraisal Well or a Development Well, within fourteen (14) days of the submission of the proposal to the Parties and no Party has given notice under Article 7.5.1 7.4(A) that it intends to prepare such a development Programme and BudgetDevelopment Program. 7.3.3 (3) the proposed Appraisal Well is a follow up to an existing Sole Risk Exploration Well as per 7.2(B)(1)(i), (ii) or (iii). (C) Subject to Articles 7.3.1 7.3(A) and 7.3.2 7.3(B), if a Party wishes to propose Sole Risk Drilling under Article 7.2.2(a)(i7.2(B)(1)(i), (ii) or (iv) it shall give notice to the other Parties setting out: (a1) The the proposed location location, total depth and stratigraphic objectives of such drilling; and (b2) All all other relevant information including, but not limited to, the date on which it proposes that operations should be started, such date being not less than sixty forty five (6045) nor days or more than one hundred and eighty (180) days from the date of the noticenotice and the estimated cost and time involved. Each of the Parties receiving such a notice shall respond to it by notice to the other Parties Parties, within twenty-eight (28) days thereof, electing whether or not to participate. Any Party failing to respond within the said twenty-eight (28) days shall be deemed to have elected not to participate. 7.3.4 (D) If a Party wishes to propose Sole Risk Drilling under Article 7.2.2(a)(iii7(B)(2)(a)(iii), such Party shall give as much notice as possible to the other Parties prior to the proposed commencement of such Sole Risk Drilling, stating whether it wishes to use Joint Property for such Sole Risk Drilling (and, if so, what items thereof) and setting out such relevant information as is necessary in order to allow the other Parties to consider the proposal and elect whether or not to participate within the period hereinafter specified. Each of the Parties receiving such a notice shall respond to it, by notice to the other Parties, within forty-eight (48) hours thereof (to include one (1) Business Day) or within such longer period as may be specified in the notice), electing whether or not to participate. Any Party failing to respond within the said period shall be deemed to have elected not to participate. 7.3.5 (E) If the Percentage Interests of the Parties electing to participate together with including the Percentage Interest of the Party proposing the Sole Risk Drilling are not less than the pass-mark provided under percentage stipulated in Article 4.7.2, 5.9(A) the operations Operations shall be carried out, in accordance with the said notice, by the Operator Operator’s notice as part of the Joint Operations as if determined by the Operating Committee and, if appropriate, the current work Programme relevant Program shall be deemed amended accordingly and the Operator shall promptly notify the Parties of the consequential amendments to the current relevant Budget. 7.3.6 (F) If the Percentage sum of the Interests of the Parties electing to participate together with including the Percentage Interest of the Party proposing the Sole Risk Drilling are less than the pass- mark provided under percentage stipulated in Article 4.7.2 then5.9(A), such Party together with any other Parties which have elected to participate may, subject always to Article 7.2.8 and subject also to the provisos to Article 7.2.2(a)(ii7.2(B)(1)(i), (ii) or (iiiiv) in the case of Sole Risk Drilling there underthereunder, within twenty-eight (28) days days, or, in the case of Sole Risk Drilling referred to in Article 7.2(B)(1)(iii), within 48 hours (which shall include at least one Business Day) following the expiration of the said notice the Sole Risk Party may require the Operator to notices, undertake the Sole Risk Drilling. In such event, if the same arose as a result of the Operating Committee voting against or failing to vote in favour of an AFE under a current work Programme and Budget, such work Programme shall be deemed amended accordingly and the Operator shall notify the Parties of the consequential amendments to the current Budget. In the case of a notice given under Article 7.3.3, the The Sole Risk Drilling may not be commenced later than one hundred and eighty (180) days following such notice and, in the case of a notice given under Article 7.3.4, the Sole Risk Drilling may be commenced as soon as it is possible to do so without interference to the Joint Operations on that wellnotice.