Development and Production Period. 7.1. If subsequent to a Commercial Discovery, the Contractor submits an application for a Production License pursuant to the terms of the Act and Article 16 of this Agreement, the term of the Agreement shall be for an initial period of twenty (20) years from the Effective Date with respect to the Development Area corresponding to such Commercial Discovery. Such Period shall be referred to as the Initial Production Period. However, if the Commercial Discovery relates to a Natural Gas Field, the term of the Initial Production Period shall be thirty (30) years from the Effective Date. 7.2. The Contractor may, pursuant to the Act, request by notice to the Minister at least one (1) year prior to the end of the Petroleum Production Licence to renew the Licence for a period of up to ten (10) years.
Appears in 2 contracts
Sources: Production Sharing Agreement, Production Sharing Agreement