Common use of Performance of Exploration Clause in Contracts

Performance of Exploration. (a) If the Contractor completes the Minimum Exploration Work Requirements within the required timeframe for each Period of Exploration to the satisfaction of the Ministry and upon receipt of proof acceptable to the Ministry from the Contractor, the Contractor shall have a right to proceed to any subsequent Period. (b) The following work does not qualify as fulfilling the Minimum Exploration Work Requirements: (i) Work carried out prior to the Effective Date; (ii) Work carried out after the termination of the Period or any extension thereof agreed to in writing by the Ministry; (iii) Work carried out not related to the Contract Area; (iv) Work which is not carried out in accordance with an agreed Work Programme (including as amended in accordance with Article 4.6); (v) Appraisal ▇▇▇▇▇, seismic surveys or any other Petroleum Operations which are carried out as part of an Appraisal or any work carried out as part of the Development of a Commercial Discovery in accordance with Article 4.9; or (vi) Work which does not qualify as Petroleum Operations under this Contract. (c) Except with the consent of the Ministry, no work in a Development Area will be regarded as Exploration for the purpose of this Article 4, Article 8 and Annex C, except in respect of a formation deeper than the Field concerned and in which no Discovery has been made. (d) Any Well required in a Period of Exploration shall be drilled to such depth as is necessary to ensure penetration and allow for the proper testing of the prospective zone, even if that requires drilling beyond the minimum depth requirement set out in the Minimum Exploration Work Requirements, unless before reaching such depth basement is encountered as agreed to and approved by the Ministry. (e) Additional line kilometres of seismic data and additional ▇▇▇▇▇ or further drilling beyond the minimum required in each Period under the Minimum Exploration Work Requirements may, with the prior approval of the Ministry, which will not be unreasonably withheld, be carried forward to meeting the minimum obligations for seismic data or exploration ▇▇▇▇▇, as the case may be, under the Minimum Exploration Work Requirements for a subsequent Period, provided that such a work obligation exists in the subsequent Period and the Minimum Exploration Work Requirement for each Period (including any preceding Period) is fulfilled. (f) Subject to Article 4.6(g), the Contractor may discontinue a Drilling Operation if, in the course of drilling a Well, the Contractor determines, in its reasonable opinion and with the consent of the Ministry, which will not be unreasonably withheld, that further drilling is technically impossible or imprudent because: (i) Further drilling would present an obvious danger, such as but not limited to the presence of abnormal pressure or excessive losses of drilling mud; (ii) Impenetrable formations are encountered; or (iii) Petroleum-bearing formations are encountered which require protecting, thereby preventing planned depths from being reached. (g) If a Well is abandoned due to technical difficulties under Article 4.6(f), the Contractor is not relieved of its obligation to carry out the required work activities stipulated as Minimum Exploration Work Requirements and the Ministry shall have the option of either: (i) Requiring the Contractor to drill a substitute Exploration Well at a location determined by the Contractor with the agreement of the Ministry, to the depth stipulated in the Minimum Exploration Work Requirements for the corresponding Period; or (ii) Where the Ministry agrees with the Contractor that further drilling or a substitute Well is technically impossible or imprudent and the Contractor is therefore unable to carry out the required work activities, waiving the minimum depth requirement and accepting a payment of money corresponding to the amount of outstanding drilling, to be determined by the Ministry, or an independent consultant retained on its behalf at the cost of the Contractor, in which case the Contractor will be deemed to have satisfied the obligation to drill such Exploration Well, such payment (including any costs of an independent consultant) not to be Recoverable Costs.

Performance of Exploration. (a) If the Contractor completes the Minimum Exploration Work Requirements within the required timeframe for each Period of Exploration to the satisfaction of the Ministry and upon receipt of proof acceptable to the Ministry from the Contractor, the Contractor shall have a right to proceed to any subsequent Period provided that the Contractor and the Ministry shall reassess the value of the Minimum Exploration Work Requirements for that Period. If the value at that time is more than the value given as Security under paragraph 2.2 (a) (iv) then Contractor shall provide the Ministry with additional Security in such form and with such content as is satisfactory to the Ministry for the performance of the Contractor's Minimum Exploration Work Requirements under the Work Programme and Budget in that Period. For the avoidance of doubt, expenditure of the minimum expenditure amount alone shall not be taken as satisfying the Minimum Exploration Work Requirements. (b) The following work does not qualify as fulfilling the Minimum Exploration Work Requirements and no expenditure incurred carrying out the following work will be counted towards the minimum expenditure requirements set out in the Minimum Exploration Work Requirements: (i) Work work carried out prior to the Effective Date; (ii) Work work carried out after the termination of the Period or any extension thereof agreed to in writing by the Ministry; (iii) Work work carried out not related to outside the Contract Area; (iv) Work work which is not carried out in accordance with an agreed Work Programme (including as amended in accordance with Article Section 4.6); (v) Appraisal ▇▇▇▇▇, seismic surveys or any other Petroleum Operations which are carried out as part of an Appraisal or any work carried out as part of the Development development of a Commercial Discovery in accordance with Article Section 4.9; or (vi) Work work which does not qualify as Petroleum Operations under this Contract. (c) Except with the consent of the Ministry, no work in a Development Area will be regarded as Exploration for the purpose purposes of this Article 4, Article 8 and Annex CD, except in respect of a formation deeper than the Field concerned and in which no Discovery has been made. (d) Any Well required in a Period of Exploration shall be drilled to such depth as is necessary to ensure penetration and allow for the proper testing of the prospective zone, even if that requires drilling beyond the minimum depth requirement set out in the Minimum Exploration Work Requirements, unless before reaching such depth basement is encountered as agreed to and approved by the Ministry. (e) Additional line kilometres of seismic data and additional ▇▇▇▇▇ or further drilling beyond the minimum required in each Period under the Minimum Exploration Work Requirements may, with the prior approval of the Ministry, which will not be unreasonably withheld, be carried forward to meeting meet the minimum obligations for seismic data or exploration ▇▇▇▇▇, as the case may be, under the Minimum Exploration Work Requirements for a subsequent Period, provided that such a work obligation exists in the subsequent Period and the Minimum Exploration Work Requirement for each Period (including any preceding Period) is fulfilled. (f) Subject to Article 4.6(g)paragraph 4.7(g) below, the Contractor may discontinue a Drilling Operation if, in the course of drilling a Well, the Contractor determines, in its reasonable opinion and with the consent of the Ministry, which will not be unreasonably withheld, that further drilling is technically impossible or imprudent because: (i) Further further drilling would present an obvious danger, such as but not limited to the presence of abnormal pressure or excessive losses of drilling mud; (ii) Impenetrable impenetrable formations are encountered; or (iii) Petroleum-bearing formations are encountered which require protecting, thereby preventing planned depths from being reached. (g) If a Well is abandoned due to technical difficulties under Article 4.6(f)paragraph 4.7(f) above, the Contractor is not relieved of its obligation to carry out the required work activities stipulated as Minimum Exploration Work Requirements and the Ministry shall have the option of either: (i) Requiring requiring the Contractor to drill a substitute Exploration Well at a location determined by the Contractor with the agreement of the Ministry, to the depth stipulated in the Minimum Exploration Work Requirements for the corresponding Period; or (ii) Where where the Ministry agrees with the Contractor that further drilling or a substitute Well is technically impossible or imprudent and the Contractor is therefore unable to carry out the required work activities, waiving the minimum depth requirement and accepting a payment of money corresponding to the amount of outstanding drilling, to be determined by the Ministry, or an independent consultant retained on its behalf at the cost of the Contractor, in which case the Contractor will be deemed to have satisfied the obligation to drill such Exploration Well, such payment (including any costs of an independent consultant) not to be Recoverable Costs.

Performance of Exploration. (a) If the Contractor completes Upon completion of the Minimum Exploration Work Requirements within the required applicable timeframe for in relation to each Exploration Period of Exploration to the satisfaction of the Ministry and upon receipt of proof acceptable to the Ministry from the Contractorat ANPM’s full satisfaction, the Contractor latter shall have issue a right completion notice, acknowledging that it has no claims under the Security in relation to proceed to any subsequent Periodsuch Minimum Exploration Work Requirements. (b) In the case of Article 4.7(a) above, Contractor shall be entitled to proceed for the subsequent Exploration Period, subject only to approval by ANPM of the Minimum Exploration Work Requirements for such Exploration Period and the corresponding Work Program and Budget for the first Contract Year thereof. (c) The following work does not qualify as for the purposes of fulfilling the Minimum Exploration Work Requirements: (i) Work work carried out prior to the Effective Date; (ii) Work work carried out after the termination of the relevant Exploration Period or any extension thereof agreed to in writing by between the MinistryContractor and ANPM; (iii) Work work carried out not un-related to the Contract Area; (iv) Work which is work not carried out in accordance with an agreed the approved Work Programme Program and Budget (including as amended in accordance with Article 4.64.7); (v) Appraisal appraisal ▇▇▇▇▇, seismic surveys or any other Petroleum Operations which are carried out as part of an Appraisal or any work carried out as part of the Development of a Commercial Discovery in accordance with Article 4.9Articles 4.10 and 4.11; or (vi) Work work which does not qualify as Petroleum Operations under this Contract. (cd) Except with the consent of the MinistryUnless previously approved by ANPM as such, no work in a Development Area will be regarded shall qualify as Exploration work for the purpose of this Article 4, Article Articles 4 and 8 and Annex C, except for the work in respect of a formation deeper than the Field concerned and relevant Field, in which no Discovery has been mademade yet. (de) Any Well required in a Period of and all Exploration ▇▇▇▇▇ shall be drilled to such depth depths as is it may be necessary to ensure penetration and allow for the proper testing of the prospective zone, even if that requires drilling beyond the minimum depth requirement requirements set out forth in the Minimum Exploration Work Requirements, unless basement is encountered before reaching such depth basement is encountered depths, as may be agreed to and approved by the MinistryANPM. (ef) Additional Subject to ANPM’s prior approval, which will not be unreasonably withheld, additional line kilometres of seismic data and additional ▇▇▇▇▇ or further drilling beyond the minimum required in each Exploration Period under the Minimum Exploration Work Requirements may, with the prior approval of the Ministry, which will not be unreasonably withheld, may be carried forward out in order to meeting meet the minimum obligations for seismic data or exploration Exploration ▇▇▇▇▇, as the case may be, under in accordance with the Minimum Exploration Work Requirements for a subsequent Exploration Period, provided that such a work obligation exists obligations exist in the such subsequent Exploration Period and the Minimum Exploration Work Requirement Requirements for each Exploration Period (including any preceding PeriodExploration Periods) is are fulfilled. (fg) Subject to Article 4.6(g), the Contractor may discontinue a Drilling Operation if, in the course of the drilling of a Well, the Contractor determinesit determines that, in its reasonable opinion and with the consent of the MinistryANPM’s consent, which will not be unreasonably withheld, that further drilling is technically impossible or imprudent becausedue to one of the following reasons: (i) Further further drilling would present an obvious danger, such as as, but not limited to to, the presence of abnormal pressure or excessive losses of drilling mud; (ii) Impenetrable impenetrable formations are encountered; or (iii) Petroleum-bearing formations are encountered which require protectingproper protection and, thereby preventing consequently, prevent planned depths from being reached. (gh) If a Well is abandoned due to technical difficulties under Article 4.6(f)4.7(g) above, the Contractor is not relieved of from its obligation obligations to carry out the required work activities stipulated as established in the Minimum Exploration Work Requirements and the Ministry shall have the option of ANPM may elect to either: (i) Requiring the requiring Contractor to drill a substitute Exploration Well at a location to be determined by the Contractor with the agreement of the MinistryANPM’s agreement, to the depth stipulated in the Minimum Exploration Work Requirements for the corresponding Exploration Period; or (ii) Where the Ministry in case ANPM agrees with the Contractor that further drilling or a substitute Well is technically impossible or imprudent and the Contractor is therefore unable to carry out the required work activities, waiving waive the minimum depth requirement and accepting a payment of money in cash corresponding to the amount of outstanding drillingdrilling works, to be determined by the MinistryANPM, or an independent consultant retained on its behalf at the cost of the Contractor’s expenses, in which case the Contractor will shall be deemed to have satisfied the obligation to drill such Exploration Well, such payment . Any payments made to ANPM under this Article 4.7(h)(ii) (including any the costs of an incurred with independent consultantconsultants) shall not to be qualify as Recoverable Costs.

Performance of Exploration. (a) If the The Contractor completes must complete the Minimum Exploration Work Requirements within the required timeframe for each Period of Exploration Exploration, to the satisfaction of the Ministry and ANP upon receipt of proof acceptable to the Ministry ANP from the Contractor, within the Contractor shall have a right required time frame, in order to proceed to any subsequent Period. For the avoidance of doubt, the Contractor must fulfil the minimum work obligations described for each Period, expenditure of the minimum expenditure amount alone shall not be taken as satisfying the Minimum Exploration Work Requirements. (b) In order to proceed to any subsequent Period, Contractor and the ANP shall reassess the value of the Minimum Exploration Work Requirements for that Period. If the value at that time is more than the value given as Security under paragraph 2.2 (a) (iii) then Contractor shall provide the ANP with additional Security (in form and content satisfactory to the ANP) for the performance of the Contractor's Minimum Exploration Work Requirements under the Exploration Work Programme and Budget in that Period. (c) The following work does not qualify as fulfilling the Minimum Exploration Work Requirements and no expenditure incurred carrying out the following work will be counted towards the minimum expenditure requirements set out in the Minimum Exploration Work Requirements: (i) Work work carried out prior to the Effective Date; (ii) Work work carried out after the termination of the Period or any extension thereof agreed to in writing by the MinistryANP; (iii) Work work carried out not related to outside the Contract Area; (iv) Work work which is not carried out in accordance with an agreed Work Programme (including as amended in accordance with Article 4.6Section 4.7); (v) Appraisal ▇▇▇▇▇, seismic surveys or any other Petroleum Operations which are carried out as part of an Appraisal or any work carried out as part of the Development development of a Commercial Discovery in accordance with Article 4.9Sections 4.10 and 4.11; or (vi) Work work which does not qualify as Petroleum Operations under this ContractAgreement. (cd) Except with the consent of the MinistryANP, no work in a Development Area will be regarded as Exploration Exploration, for the purpose purposes of this Article 4, Article 8 6 and Annex C, except in respect of a formation deeper than the Field concerned and in which no Discovery has been made. (de) Any Well well required in a Period of Exploration shall be drilled to such depth as is necessary to ensure penetration and allow for the proper testing of the prospective zone, even if that requires drilling beyond the minimum depth requirement set out in the Minimum Exploration Work Requirements, unless before reaching such depth basement is encountered as agreed to and approved by the MinistryANP. (ef) Additional line kilometres of seismic data and additional ▇▇▇▇▇ or further drilling beyond the minimum required in each Period under the Minimum Exploration Work Requirements may, with the prior approval of the MinistryANP, which will not be unreasonably withheld, be carried forward to meeting meet the minimum obligations for seismic data or exploration ▇▇▇▇▇, as the case may be, under the Minimum Exploration Work Requirements for a subsequent Period, provided that such a work obligation exists in the subsequent Period and the Minimum Exploration Work Requirement minimum work requirement for each Period (including any preceding Period) is fulfilled. (fg) Subject to Article 4.6(g)paragraph 4.8(h) below, the Contractor may discontinue a Drilling Operation drilling operation if, in the course of drilling a Wellwell, the Contractor determines, in its reasonable opinion and with the consent approval of the MinistryANP, which will not be unreasonably withheld, that further drilling is technically impossible or imprudent because: (i) Further further drilling would present an obvious danger, such as but not limited to the presence of abnormal pressure or excessive losses of drilling mud; (ii) Impenetrable impenetrable formations are encountered; or (iii) Petroleumpetroleum-bearing formations are encountered which require protecting, thereby preventing planned depths from being reached. (gh) If a Well well is abandoned due to technical difficulties under Article 4.6(f)paragraph 4.8(g) above, the Contractor is not relieved of its obligation to carry out the required work activities stipulated as Minimum Exploration Work Requirements and the Ministry ANP shall have the option of either: (i) Requiring requiring the Contractor to drill a substitute Exploration Well at a location determined by the Contractor with the agreement of the MinistryANP, to the depth stipulated in the Minimum Exploration Work Requirements for the corresponding Period; or (ii) Where where the Ministry ANP agrees with the Contractor that further drilling or a substitute Well well is technically impossible or imprudent and the Contractor is therefore unable to carry out the required work activities, waiving the minimum depth requirement and accepting a payment of money corresponding to the amount of outstanding drilling, to be determined by the MinistryANP, or an independent consultant retained on its behalf at the cost of the Contractor, in which case the Contractor will be deemed to have satisfied the obligation to drill such Exploration Well, such payment (including any costs of an independent consultant) not to be Recoverable Costs.