Common use of Participating Interests Clause in Contracts

Participating Interests. 1. When and if the Government elects, pursuant to clause 28 of the contract, to participate in petroleum operations in a participation area, the Contractor constituting the contractor shall assign proportionately to the Government a part of its interest in the development area so that the rights, interest and obligations of the contractor and the Government in such area shall be owned and borne as of the participation date in undivided interests as follows: Government………… ( …..%) or such lesser amount as may be elected in accordance with clause 28 of the Contract; Contractor…………(……. %) or such greater amount as may remain after the Government's election. 2. In the event a party shall transfer in whole or in part its Participating interest pursuant to clause 35 of the Contract and Article 9 of this Participation Agreement, the participating interest of the parties therein shall be revised accordingly Draft Production Sharing Contract Blocks L1B Ministry of Energy Page 72 3. OPERATOR AND DUTIES OF OPERATOR 1. The operator shall be the party acting as operator on the participation date and the operator shall have the rights and obligations of a non-operator in respect of its participating interest. 2. The operator shall serve as operator until it resigns or is removed pursuant to the provisions of this Article, or until it ceases to hold a participating interest hereunder. In the event that an operator assigns the whole of its participating interest hereunder to one of its affiliates, such affiliate shall become operator hereunder in the former's place. 3. Upon the affirmative vote of all the non-operators, the operator shall be removed as operator in case of any one of the following- (a) Bankruptcy of the operator or its parent company; (b) Assignment for the benefit of the operator's creditors; (c) Appointment of a receiver or manager with respect to the whole or any part of the property or assets of the operator; (d) entitlement of any person other than an affiliate of the operator to appoint a majority of the members of the board of directors of the operator by the reason of any act, default or neglect of the operator; (e) Failure without justification by the operator to pay a sum due to or in the name of the joint account for more than sixty (60) days; (f) the operator's material breach of this Participation Agreement which remains un remedied for more than thirty (30) days after the operator is notified by non- operators of such breach; or (g) Reduction in the operator's participating interest to...............per cent (. %) or less.

Participating Interests. 1. When and if the Government elects, pursuant to clause 28 of the contract, to participate in petroleum operations in a participation area, the Contractor constituting the contractor shall assign proportionately to the Government a part of its interest in the development area so that the rights, interest and obligations of the contractor and the Government in such area shall be owned and borne as of the participation date in undivided interests as follows: Government………… Government ( …..%) or such lesser amount as may be elected in accordance with clause 28 of the Contract; Contractor…………(……. %) or such greater amount as may remain after the Government's election. 2. In the event a party shall transfer in whole or in part its Participating interest pursuant to clause 35 of the Contract and Article 9 of this Participation Agreement, the participating interest of the parties therein shall be revised accordingly Draft Production Sharing Contract Blocks L1B Block L27 Ministry of Energy Page 72 73 3. OPERATOR AND DUTIES OF OPERATOR 1. The operator shall be the party acting as operator on the participation date and the operator shall have the rights and obligations of a non-operator in respect of its participating interest. 2. The operator shall serve as operator until it resigns or is removed pursuant to the provisions of this Article, or until it ceases to hold a participating interest hereunder. In the event that an operator assigns the whole of its participating interest hereunder to one of its affiliates, such affiliate shall become operator hereunder in the former's place. 3. Upon the affirmative vote of all the non-operators, the operator shall be removed as operator in case of any one of the following- (a) Bankruptcy of the operator or its parent company; (b) Assignment for the benefit of the operator's creditors; (c) Appointment of a receiver or manager with respect to the whole or any part of the property or assets of the operator; (d) entitlement of any person other than an affiliate of the operator to appoint a majority of the members of the board of directors of the operator by the reason of any act, default or neglect of the operator; (e) Failure without justification by the operator to pay a sum due to or in the name of the joint account for more than sixty (60) days; (f) the operator's material breach of this Participation Agreement which remains un remedied for more than thirty (30) days after the operator is notified by non- non-operators of such breach; or (g) Reduction in the operator's participating interest to...............per cent (. %) or less.....

Participating Interests. 1. When and if the Government elects, pursuant to clause 28 of the contract, to participate in petroleum operations in a participation area, the Contractor constituting the contractor shall assign proportionately to the Government a part of its interest in the development area so that the rights, interest and obligations of the contractor and the Government in such area shall be owned and borne as of the participation date in undivided interests as follows: Government………… ( …..%) or such lesser amount as may be elected in accordance with clause 28 of the Contract; Contractor…………(……. %) or such greater amount as may remain after the Government's election.; 2. In the event a party shall transfer in whole or in part its Participating interest pursuant to clause 35 of the Contract and Article 9 of this Participation Agreement, the participating interest of the parties therein shall be revised accordingly Draft Production Sharing Contract Blocks L1B Block L16 Ministry of Energy Page 72 73 3. OPERATOR AND DUTIES OF OPERATOR 1. The operator shall be the party acting as operator on the participation date and the operator shall have the rights and obligations of a non-operator in respect of its participating interest. 2. The operator shall serve as operator until it resigns or is removed pursuant to the provisions of this Article, or until it ceases to hold a participating interest hereunder. In the event that an operator assigns the whole of its participating interest hereunder to one of its affiliates, such affiliate shall become operator hereunder in the former's place. 3. Upon the affirmative vote of all the non-operators, the operator shall be removed as operator in case of any one of the following- (a) Bankruptcy of the operator or its parent company; (b) Assignment for the benefit of the operator's creditors; (c) Appointment of a receiver or manager with respect to the whole or any part of the property or assets of the operator; (d) entitlement of any person other than an affiliate of the operator to appoint a majority of the members of the board of directors of the operator by the reason of any act, default or neglect of the operator; (e) Failure without justification by the operator to pay a sum due to or in the name of the joint account for more than sixty (60) days; (f) the operator's material breach of this Participation Agreement which remains un remedied for more than thirty (30) days after the operator is notified by non- operators of such breach; or (g) Reduction in the operator's participating interest to...............per cent (. %) or less.thirty

Participating Interests. 1. When and if the Government elects, pursuant to clause 28 of the contract, to participate in petroleum operations in a participation area, the Contractor constituting the contractor shall assign proportionately to the Government a part of its interest in the development area so that the rights, interest and obligations of the contractor and the Government in such area shall be owned and borne as of the participation date in undivided interests as follows: Government………… ( …..%) or such lesser amount as may be elected in accordance with clause 28 of the Contract; Contractor…………(……. %) or such greater amount as may remain after the Government's election. 2. In the event a party shall transfer in whole or in part its Participating interest pursuant to clause 35 of the Contract and Article 9 of this Participation Agreement, the participating interest of the parties therein shall be revised accordingly Draft Production Sharing Contract Blocks L1B Block L16 Ministry of Energy Page 72 73 3. OPERATOR AND DUTIES OF OPERATOR 1. The operator shall be the party acting as operator on the participation date and the operator shall have the rights and obligations of a non-operator in respect of its participating interest. 2. The operator shall serve as operator until it resigns or is removed pursuant to the provisions of this Article, or until it ceases to hold a participating interest hereunder. In the event that an operator assigns the whole of its participating interest hereunder to one of its affiliates, such affiliate shall become operator hereunder in the former's place. 3. Upon the affirmative vote of all the non-operators, the operator shall be removed as operator in case of any one of the following- (a) Bankruptcy of the operator or its parent company; (b) Assignment for the benefit of the operator's creditors; (c) Appointment of a receiver or manager with respect to the whole or any part of the property or assets of the operator; (d) entitlement of any person other than an affiliate of the operator to appoint a majority of the members of the board of directors of the operator by the reason of any act, default or neglect of the operator; (e) Failure without justification by the operator to pay a sum due to or in the name of the joint account for more than sixty (60) days; (f) the operator's material breach of this Participation Agreement which remains un remedied for more than thirty (30) days after the operator is notified by non- non-operators of such breach; or (g) Reduction in the operator's participating interest to...............per cent (. ( %) or less.

Participating Interests. 1. When and if the Government elects, pursuant to clause 28 of the contract, to participate in petroleum operations in a participation area, the Contractor constituting the contractor shall assign proportionately to the Government a part of its interest in the development area so that the rights, interest and obligations of the contractor and the Government in such area shall be owned and borne as of the participation date in undivided interests as follows: Government………… ( …..%) or such lesser amount as may be elected in accordance with clause 28 of the Contract; Contractor…………(……. %) or such greater amount as may remain after the Government's election.Contract; 2. In the event a party shall transfer in whole or in part its Participating interest pursuant to clause 35 of the Contract and Article 9 of this Participation Agreement, the participating interest of the parties therein shall be revised accordingly Draft Production Sharing Contract Blocks L1B Ministry of Energy Page 72 3. OPERATOR AND DUTIES OF OPERATOR 1. The operator shall be the party acting as operator on the participation date and the operator shall have the rights and obligations of a non-operator in respect of its participating interest. 2. The operator shall serve as operator until it resigns or is removed pursuant to the provisions of this Article, or until it ceases to hold a participating interest hereunder. In the event that an operator assigns the whole of its participating interest hereunder to one of its affiliates, such affiliate shall become operator hereunder in the former's place. 3. Upon the affirmative vote of all the non-operators, the operator shall be removed as operator in case of any one of the following- (a) Bankruptcy of the operator or its parent company;company; (b) Assignment for the benefit of the operator's creditors;creditors; (c) Appointment of a receiver or manager with respect to the whole or any part of the property or assets of the operator;operator; (d) entitlement of any person other than an affiliate of the operator to appoint a majority of the members of the board of directors of the operator by the reason of any act, default or neglect of the operator;operator; (e) Failure without justification by the operator to pay a sum due to or in the name of the joint account for more than sixty (60) days;days; (f) the operator's material breach of this Participation Agreement which remains un remedied for more than thirty (30) days after the operator is notified by non- non-operators of such breach; breach; or (g) Reduction in the operator's participating interest to...............per cent (. %) or less.....