Common use of WORKING INTEREST OWNERSHIP Clause in Contracts

WORKING INTEREST OWNERSHIP. 5.1 As of the Effective Date and during the validity of this Agreement, the Working Interests throughout the Area will be as under: Local Working Interest Owners including GHPL (ABC) (if applicable) 12.5% (Zone-I and Zone-1F) 17.5% (Zone-II) 22.5% (Zone-III) Foreign Working Interest Owners (XYZ) 85% (Zone-I and Zone-1F) 80% (Zone-II) 75% (Zone-III) PHC[of the province(s) in which block is located] 2.5% Provided, however, that during the exploration phase and upto each Date of Commercial Discovery in the Area, XYZ/ABC shall carry 2.50% Working Interest of the PHC subject to the provisions of Article 5.2 hereof. This will also apply to Petroleum exploration operations within a Lease Area. The expenditure incurred during exploration phase/operations will be reimbursed by the PHC in installments from the proceeds of Commercial production over a 5 years period starting from effective date of Declaration of Commerciality. Provided further that the PHC shall, within thirty days of the Declaration of Commerciality, exercise its right to take its decision for full participation which decision shall be conveyed to ABC/XYZ and the DGPC. For the purpose of this Article 5, the Local Working Interest Owners shall mean companies existing under the laws of Pakistan with more than 50% shares held by Pakistanis. The working Interest Owner shall offer two and half percent (2.5%) working interest to the GHPL on full participation basis. The GHPL shall exercise such right by a notice to the Operator within thirty (30) days of the date of receipt of the notice from the Operator. 5.2 At all times Local Working Interest Owners shall maintain [15% (Zone I and Zone 1(F), 20% (Zone-II, 25% (Zone –III] working interest (“Required Minimum Local Working Interest” as define in 1.62), provided however, in the event any Local Working Interest Owner subsequently intends to reduce its Working Interest in a joint venture whereby the collective Working Interest(s) of Local Working Interest Owners becomes lower than the threshold specified herein for Required Minimum Local Working Interest, GHPL and PHC, provided that GHPL and PHC are already Working Interest Owners, shall have the first right to make up the balance Required Minimum Local Working Interest, which shall be offered equally to GHPL and PHC on point forward basis without reimbursement or payment of any past cost. However, such offer for enhancement of working interest shall be on full participation basis. GHPL/PHC shall exercise their first right under this Article 5.2 within thirty (30) days of the receipt of an offer from ABC failingwhich this right shall be deemed to have been waived by GHPL or PHC, as the case may be. In the event, GHPL/PHC waive or are deemed to have waived their rights under this Article 5.2, ABC may assign its working interest or part thereof to any third party(ies) provided that such assignment shall be at a price no lower and upon terms no more favourable to the third party(ies) than the price and terms which ABC offered to GHPL/PHC.

WORKING INTEREST OWNERSHIP. 5.1 As of the Effective Date and during the validity of this Agreement, the Working Interests throughout the Area will be as under: Local Working Interest Owners including GHPL (ABC) (if applicable) 12.5% (Zone-I and Zone-1F) 17.5% (Zone-II) 22.5% (Zone-III) Foreign Working Interest Owners (XYZ) 85% (Zone-I and Zone-1F) : 80% (Zone-II) : 75% (Zone-III) PHC[of the province(s) in which block is located] 2.5% Provided, however, that during the exploration phase and upto each Date of Commercial Discovery in the Area, XYZ/ABC shall carry 2.50% Working Interest of the PHC subject to the provisions of Article 5.2 hereof. This will also apply to Petroleum exploration operations within a Lease Area. The expenditure incurred during exploration phase/operations will be reimbursed by the PHC in installments from the proceeds of Commercial production over a 5 years period starting from effective date of Declaration of Commerciality. Provided further that the PHC shall, within thirty days of the Declaration of Commerciality, exercise its right to take its decision for full participation which decision shall be conveyed to ABC/XYZ and the DGPC. For the purpose of this Article 5, the Local Working Interest Owners shall mean companies Company means a company existing under the laws of Pakistan with more than 50% shares held by Pakistanis. The working Interest Owner shall offer two and half percent (2.5%) working interest to the GHPL on full participation basis. The GHPL shall exercise such right by a notice to the Operator within thirty (30) days of the date of receipt of the notice from the Operator. 5.2 At all times Local ABC will maintain the Working Interest Owners shall maintain [15% Interest, which is specified in Article 5.1 (Zone I and Zone 1(F), 20% (Zone-II, 25% (Zone –III] working interest (“Required Minimum Local Working Interest” as define in 1.62), provided however, in the event any Local Working Interest Owner local E&P company, other than GHPL, subsequently intends to reduce its Working Interest working interest in a joint venture whereby the collective Working Interest(sworking interest(s) of Local Working Interest Owners local E&P companies (including that of GHPL) becomes lower than the above threshold specified herein for Required Minimum Local required minimum local Working Interest, GHPL and PHC, provided that GHPL and PHC are already Working Interest Owners, shall have the first right to make up the balance Required Minimum Local Working Interest, which shall be offered equally to GHPL and PHC required minimum Pakistani working interest on point forward basis without reimbursement or payment of any past cost. However, GHPL will remain non-operator in such offer for enhancement joint ventures. 5.3 Consortia of companies not meeting the minimum required local working interest shall can still be on full participation basis. GHPL/PHC shall exercise their first right under this Article 5.2 granted an exploration licence provided such companies advertise in the press within thirty (30) 15 days of the receipt of an offer from ABC failingwhich this right grant, inviting Pakistani incorporated companies and GHPL to participate in the joint venture on the full participation basis under standard Joint Operating Agreement. The Pakistani incorporated companies and GHPL shall have the option to participate in the joint venture within 30 days. 5.4 The foreign E&P companies shall be deemed to have been waived by fulfilled their obligation with respect to the minimum local participation if Pakistani incorporated companies and/or GHPL do not take any interest. 5.5 Notwithstanding anything contained herein the GHPL may elect to contribute its share of Expenditure out of funds allocated to it from IBRD Loan, or PHCany other loan, as in which event the case may be. In the event, GHPL/PHC waive or are deemed to have waived their rights under this Article 5.2, ABC may assign its working interest or part thereof to any third party(ies) provided that such assignment Operator shall be at a price no lower required to adopt the procedures for procurement of goods and upon services of such loan funds in accordance with procurement procedures/guidelines laid down by loan giving agency provided such terms no more favourable and conditions are in accordance with the prudent Good International Oilfield Practices and do not hinder or delay the Joint Operations hereunder. 5.6 The Working Interest Owners may produce Petroleum from the Area as test or early production as may be permitted by the Government pursuant to the third party(ies) than Rules, prior to the price and terms which ABC offered to GHPL/PHCgrant of a Lease.

WORKING INTEREST OWNERSHIP. 5.1 As of the Effective Date and during the validity of this Agreement, the Working Interests throughout the Area will be as under: Local Working Interest Owners including GHPL (ABC) (if applicable) 12.515% (Zone-I and Zone-1FI) 17.520% (Zone-II) 22.525% (Zone-III) XYZ (Foreign Working Interest Owners (XYZOwners) 85% (Zone-I and Zone-1FI) 80% (Zone-II) 75% (Zone-III) PHC[of the province(s) in which block is located] GHPL/PHC 5% (2.5% Provided, however, that during the exploration phase and upto each Date of Commercial Discovery in the Area, XYZ/ABC shall carry 2.50% Working Interest of the PHC subject to the provisions of Article 5.2 hereof. This will also apply to Petroleum exploration operations within a Lease Area. The expenditure incurred during exploration phase/operations will be reimbursed by the PHC in installments from the proceeds of Commercial production over a 5 years period starting from effective date of Declaration of Commerciality. Provided further that the PHC shall, within thirty days of the Declaration of Commerciality, exercise its right to take its decision for full participation which decision shall be conveyed to ABC/XYZ and the DGPC. each) For the purpose of this Article 5, the Local Working Interest Owners shall mean companies existing under the laws of Pakistan with more than 50% shares held by Pakistanis. The working Interest Owner shall offer two and half percent (2.5%) working interest to each of the GHPL and the PHC on full participation basis. The GHPL and the PHC shall exercise such right by a notice to the Operator within thirty (30) days of the date of receipt of the notice from the Operator. 5.2 At all times Local Working Interest Owners shall maintain [15% (Zone I and Zone 1(F)I, 20% (Zone-II, 25% (Zone –III] working interest (“Required Minimum Local Working Interest” as define in 1.621.61), provided however, in the event any Local Working Interest Owner subsequently intends to reduce its Working Interest in a joint venture whereby the collective Working Interest(s) of Local Working Interest Owners becomes lower than the threshold specified herein for Required Minimum Local Working Interest, GHPL and PHC, provided that GHPL and PHC are already Working Interest Owners, shall have the first right to make up the balance Required Minimum Local Working Interest, which shall be offered equally to GHPL and PHC on point forward basis without reimbursement or payment of any past cost. However, such offer for enhancement of working interest shall be on full participation basis. GHPL/PHC shall exercise their first right under this Article 5.2 within thirty (30) days of the receipt of an offer from ABC failingwhich failing which this right shall be deemed to have been waived by GHPL or PHC, as the case may be. In the event, GHPL/PHC waive or are deemed to have waived their rights under this Article 5.2, ABC may assign its working interest or part thereof to any third party(ies) provided that such assignment shall be at a price no lower and upon terms no more favourable to the third party(ies) than the price and terms which ABC offered to GHPL/PHC.