Common use of Work Programs and Budgets Clause in Contracts

Work Programs and Budgets. 1. On or before the 28th day of April of each year, Operator shall deliver to the Parties a proposed Work Program and Budget detailing the Joint Operations to be performed for the following Contract Year. Within Thirty (30) Days of such delivery, the Operating Committee shall meet to consider and to endeavor to agree on a Work Program and Budget. This budget should be approved no later than June 28, at which date WP&B are due to be presented to the Kenyan government 2. The Work Program and Budget agreed by the Operating Committee shall include at least that part of the Minimum Work Obligations required to be carried out during the Contract Year in question under the terms of the Contract. If the Operating Committee is unable to agree on such a Work Program and Budget, then Operator shall choose between the competing proposals, always in the understanding that it must contain at least the operations as are necessary to maintain the Contract in full force and effect, including such operations as are necessary to fulfill the Minimum Work Obligations required for the given Contract Year. 3. For the award of all contracts less than or equal to US$500,000 in value, the relevant provisions of the Contract shall apply. For all contracts valued at more than US$500,000 Operator shall be required to utilize tender procedure. (A) Prior to incurring any commitment or expenditure for the Joint Account, which is estimated to be in excess of US$500,000 Operator shall send to each Non-Operator an Authorization For Expenditures (AFE). (B) Notwithstanding the above, Operator shall not be obliged to furnish an AFE to the Parties with respect to any Minimum Work Obligations, workovers of xxxxx and general and administrative costs that are listed as separate line items in an approved Work Program and Budget. (C) All AFEs shall be for informational purposes only. Approval of an operation in the current Work Program and Budget shall authorize Operator to conduct the operation without further authorization from the Operating Committee. (D) For expenditures on any line item of an approved Work Program and Budget, Operator shall be entitled to incur without further approval of the Operating Committee an over expenditure for such line item up to ten percent (10%) of the authorized amount for such line item; provided that the cumulative total of all over expenditures for a Calendar Year shall not exceed five percent (5%) of the total annual Work Program and Budget in question.

Work Programs and Budgets. 1. On or Operator shall submit to the Operating Committee, before the 28th day of April October 1st of each year, Operator shall deliver to the Parties a proposed Work Program and Budget detailing the Joint Operations to be performed work program as well as an estimate of expenditures for the following Contract Yearyear. Within Thirty (30) Days of such deliveryAfter examination, review and supplements if there are any, the Operating Committee final work program shall meet to consider and to endeavor to agree on a Work Program and Budget. This budget should be approved no later than June 28, at which date WP&B are due to be presented to the Kenyan government 2. The Work Program and Budget agreed adopted by the Operating Committee shall include in accordance to Article 6 hereof and at least that part of the Minimum Work Obligations required latest on December 1st or at any other date agreed mutually by the Parties. The work programs transmitted to be carried out during the Contract Year in question under the terms of the Contract. If the Operating Committee is unable to agree on such should include a Work Program technical description of each type of envisaged operation, as well as the quarterly work calendar. The level of detail of the budget for predraft work program, and Budgetthe final work program will be the AFE (Authorization for Expenditure) level, then Operator within generally accepted petroleum industry standards and practices. For planning purposes only, it shall choose between also submit anticipated programs for the competing proposals, always in the understanding that it must contain at least the operations as are necessary to maintain the Contract in full force and effecttwo subsequent years, including such operations as are necessary to fulfill an estimate of Exploration Costs. It is admitted that the Minimum Work Obligations required for the given Contract Year. 3. For the award of all contracts less than or equal to US$500,000 in value, the relevant provisions of the Contract shall apply. For all contracts valued at more than US$500,000 Operator shall be required to utilize tender procedure. (A) Prior to incurring any commitment or expenditure for the Joint Account, which is estimated to be in excess of US$500,000 Operator shall send to each Non-Operator an Authorization For Expenditures (AFE). (B) Notwithstanding the above, Operator shall not be obliged to furnish an AFE to the Parties with respect to any Minimum Work Obligations, workovers of xxxxx and general and administrative costs that are listed as separate line items in an approved Work Program and Budget. (C) All AFEs shall be for informational purposes only. Approval details of an operation in annual work program can require modifications during the current Work Program and Budget shall authorize execution for opportunity reasons due to operational constrains. In this care the Operator to conduct the operation without further authorization from may make necessary modification after approval of the Operating Committee. (D) 2. No expenses or liabilities may be incurred by Operator unless they have been provided for in a budget approved by the Operating Committee. For expenditures on any line item the purpose of an approved Work Program and Budgetsimplifying the conduct of Joint Operations, the Operator shall be entitled exempt from obtaining the Non-Operators prior agreement: · To incur extra expenses arising from an unforeseen increase in cost relating to incur without further approval intangible fixed assets provided that their amount does not exceed ten (10) percent of the Operating Committee an over expenditure for such line item up to ten percent (10%) budgeted cost of the authorized amount article concerned and in no case exceeding 200,000 US Dollars per item. · To incur any new expenses for such line item; equipment (fixed or movable) not foreseen in the cumulative approved budget heading provided that the cumulative total of all over expenditures for a Calendar Year shall amount does not exceed five ten (10) percent (5%) of the total annual Work Program and Budget in questionbudget heading, it being specified that, for small budgetary expenses, the increase may be greater than ten (10) percent, without exceeding 80,000 US Dollars per item. · To incorporate (without giving the enumeration thereof or a detailed justification under the caption “small sundry expenses”), the estimated expenses relating to the acquisition or the production of goods, without exceeding 80,000 US Dollars per item. In case of extreme urgency, Operator may immediately incur expenditures it deems necessary for the protection of personnel or property, subject to a notification to the Non-Operators as soon as possible.