Common use of DISCOVERY AND DEVELOPMENT Clause in Contracts

DISCOVERY AND DEVELOPMENT. (a) If Petroleum is discovered in the Contract Area, the Company will, within thirty days from the date on which evaluated test results relating to the discovery are submitted to T.P.D.C., inform T.P.D.C. by notice in writing whether or not the discovery is in the opinion of the Company, of potential commercial interest. (b) If the Company informs T.P.D.C. that in its opinion the discovery is not of potential commercial interest then T.P.D.C. will have the option to require the Company surrender its rights and be relieved of its obligations in respect of the block or blocks comprising the geological feature (as outlined by the relevant seismic data) in which the discovery is located. (c) The option aforesaid will lapse if not exercised by T.P.D.C. within twelve months from the date on which notice was given to T.P.D.C. by the Company pursuant to sub-article (a) of this Article and during the said period of twelve months, and any subsequent period if the option lapses without being exercised, the Minister will in respect of the discovery to which that notice relates exempt T.P.D.C. from the requirements of Section 32(2) of the Act. (d) Where pursuant to sub-article (b) of Article, the Company has surrendered its rights and been relieved of its obligations in respect of any block or blocks in which the discovery is located, notwithstanding that the said block or blocks continue to be subject to the Exploration Licence referred to in sub-article (b) of Article 3, the said block or blocks shall not for the purpose of this Agreement, constitute part of the Contract Area. (e) Where the Company, pursuant to sub-article (a) of this Article, has informed T.P.D.C. that, in its opinion the discovery of potential commercial interest, the Company will, as soon as practicable thereafter, submit, for the consideration of the Advisory Committee, its proposals for an appraisal programme to meet the requirements of Section 32(2) of the Act.

DISCOVERY AND DEVELOPMENT. (a) If Petroleum is discovered in the Contract Area, the Company Contractor will, within thirty days from the date on which evaluated test results relating to the discovery are submitted to T.P.D.C.XXX Corporation, inform T.P.D.C. XXX Corporation by notice in writing whether or not the discovery is in the opinion of the CompanyContractor, of potential commercial interest. (b) If the Company Contractor informs T.P.D.C. XXX Corporation that in its opinion the discovery is not of potential commercial interest then T.P.D.C. XXX Corporation will have the option to require the Company Contractor surrender its rights and be relieved of its obligations in respect of the block or blocks comprising the geological feature (as outlined by the relevant seismic data) in which the discovery is located. (c) The option aforesaid will lapse if not exercised by T.P.D.C. XXX Corporation within twelve months from the date on which notice was given to T.P.D.C. XXX Corporation by the Company Contractor pursuant to sub-sub- article (a) of this Article and during the said period of twelve months, and any subsequent period if the option lapses without being exercised, the Minister will in respect of the discovery to which that notice relates exempt T.P.D.C. XXX Corporation from the requirements of Section 32(2) of the Act. (d) Where pursuant to sub-article (b) of Article, the Company Contractor has surrendered its rights and been relieved of its obligations in respect of any block or blocks in which the discovery is located, notwithstanding that the said block or blocks continue to be subject to the Exploration Licence License referred to in sub-article (b) of Article 3, the said block or blocks shall not for the purpose of this Agreement, constitute part of the Contract Area. (e) Where the CompanyContractor, pursuant to sub-article (a) of this Article, has informed T.P.D.C. XXX Corporation that, in its opinion the discovery of potential commercial interest, the Company Contractor will, as soon as practicable thereafter, submit, for the consideration of the Advisory Committee, its proposals for an appraisal programme to meet the requirements of Section 32(2) XX of the Act.