SOLE RISK OPERATIONS. 1. Any party may undertake petroleum operations at sole risk (hereinafter referred to as "sole risk project") in a participation area, subject to the provisions of this Article. 2. The following types of sole risk project may be proposed- (a) the drilling of a well or the deepening, side-tracking, completing, plugging back, testing or reworking of an existing well drilled for the joint account of the parties, in order to test a formation in which no jointly-owned well has been completed as a well producing or capable of producing petroleum; (b) The installation of production and transportation facilities. 3. The conduct of a project in a development area may not be the subject of a sole risk notice under this Article until after it has been proposed in complete form to the operating committee for consideration pursuant to Article 4 hereof and has not been approved within the period therein provided. In the event that such project fails to obtain the requisite approval of the operating committee, then any party may serve notice on the other parties of its intention to carry out that project at sole risk. The other parties may give counter- notice that they wish to participate in the project within sixty (60) days after receipt thereof but, where a drilling rig is on the location and has not been released, the period is reduced to seventy-two (72) hours after receipt thereof. The periods set forth in this Article 11 (3) shall be extended for any period of time mutually agreed by the parties as necessary or desirable for acquiring or developing additional information on the sole risk project. 4. If all the other parties elect to participate in the project identified in the proposing party's notice within the period thereof provided, such project is considered as being approved by the operating committee and the provisions of Article 4 (8) of this Participation Agreement shall apply. Draft Production Sharing Contract Block L28 Ministry of Energy Page 86 5. In the event that less than all the parties elect to participate in the project, the parties which elected to participate (hereafter referred to as "sole risk parties") shall be entitled to have the sole risk project carried out. The interest of each sole risk party in a sole risk project shall be in proportion to its participation interest in this Participation Agreement, or in such other proportion as the sole risk parties may agree. Any sole risk project shall be carried out at the sole risk, cost and expense of the sole risk parties in the proportion of their respective interests. 6. A sole risk project shall be carried out by the operator on behalf of the sole risk parties under the provisions of this participation agreement. No sole risk project may be commenced after one hundred and eighty (180) days following the expiration of the notice period prescribed in Article 11 (3), but the operator shall commence work as promptly as reasonably possible if the notice period of seventy two (72) hours, set forth in Article 11 (3), applies. The operator shall complete the sole risk project with due diligence provided that it does not jeopardize, hinder or unreasonably interfere with petroleum operations carried out under the Contract and adopted by the operating committee pursuant to Article 4 of this Participation Agreement. The sole risk parties may use for the sole risk project any production, handling, processing and/or transporting facilities, which are joint property, subject to a determination by the operating committee as to usage fees, availability of capacity and production compatibility. 7. In connection with any sole risk project- (a) the sole risk project will be carried out under the overall supervision and control of the sole risk parties in lieu of the operating committee; (b) the computation of costs and expenses of the sole risk project incurred by the sole risk parties shall be made in accordance with the principles set out in exhibit “A" attached hereto; (c) the operator carrying out the sole risk project shall maintain separate books, records and accounts (including bank accounts) for the sole risk project which shall be subject to the same right of examination and audit by the sole risk parties; (d) the costs and expenses of the sole risk project shall not be reflected in the statements and billing rendered by the operator for petroleum operations under the Participation Agreement; and Draft Production Sharing Contract Block L28 Ministry of Energy Page 87 (e) if the operator is carrying out a sole risk project on behalf of the sole risk parties, the operator shall be entitled to request the sole risk parties in connection with the sole risk project to advance their share of the estimated expenditure and shall not use joint account funds or be required to use its own funds for the purpose of paying the costs and expenses of the sole risk project; furthermore the operator shall not be obliged to commence or, having commenced, to continue the sole risk project unless and until relevant advances have been received from the sole risk parties. 8. The sole risk parties shall indemnify and hold harmless the other parties against all actions, claims, demands and proceedings whatsoever brought by any third party arising out of or in connection with the sole risk project and shall further indemnify the other parties against all damages, costs, losses and expenses whatsoever directly or indirectly caused to or incurred by them as a result of anything done or omitted to be done in the course of carrying out such sole risk project. 9. Subject to the provision of Article 11 (10) below, the sole risk project, including data and information, is wholly owned by the sole risk parties in accordance with the provisions of the Contract, but the sole risk parties shall keep the other parties informed about the project. In the event that such project results in an increase of production of petroleum from the participation area, the portion of such increase, which is available to the Contractor, shall be owned solely by the sole risk parties. Each of them shall have the right and obligation to take in kind, and separately dispose of its proportional share of supplementary petroleum production. 10. Any party or parties which are not participating in the sole risk project may, by giving thirty (30) days' notice to the sole risk parties, become participants in such project, at any time after the sole risk parties have recovered from the supplementary petroleum production the following sums of money to which they are entitled on the project:
Appears in 2 contracts
Sources: Production Sharing Contract, Production Sharing Contract
SOLE RISK OPERATIONS. 1. Any party 18.1 A Party may undertake petroleum operations at sole risk (hereinafter referred to propose that a project which is not adopted by the management committee be carried out as "a sole risk project") . Sole risk development shall take place in a participation area, subject to accordance with the provisions of this ArticleArticle 19.
2. 18.2 The following types activities may be carried out on a sole risk basis:
a) Geological, geophysical and stratigraphic surveys and tests;
b) Drilling of exploration ▇▇▇▇▇, resumption of drilling of exploration ▇▇▇▇▇, or drilling made to estimate reserves in connection with unitization;
c) Deeper drilling, deviation drilling or testing of zones which have already been penetrated by the drilling of an exploration well;
d) Further evaluation of a Deposit comprised by a development plan which has not been adopted pursuant to Article 16.2.
18.3 Nonetheless, sole risk operations may not take place:
a) At or in connection with delineation drilling of a Deposit which has been developed or is comprised by an adopted development plan. This, however, does not apply to drilling for purposes of estimating reserves in connection with a unitization;
b) If they may reduce the production from a Deposit which has been developed or for which a development plan has been adopted;
c) If they wholly or in part may interfere with plans or work programs adopted by the joint venture before the sole risk project may be proposed-is commenced;
(ad) Before the drilling of a well or obligatory work commitment defined in the deepening, side-tracking, completing, plugging back, testing or reworking of an existing well drilled for the joint account of the parties, in order to test a formation in which no jointly-owned well Production Licence has been completed as a well producing or capable of producing petroleum;
(b) The installation of production and transportation facilitiescompleted. This, however, does not apply to activities described in Article 18.2, litra c).
3. The conduct of a project in a development area may not be the subject of 18.4 A proposal to carry out a sole risk notice under this Article until after it has been proposed project shall be submitted in complete form writing to the operating committee for consideration pursuant to Article 4 hereof and has not been approved within the period therein provided. In the event that such project fails to obtain the requisite approval other Parties with a detailed description of the operating committeework to be carried out, then any party may serve notice on along with a corresponding budget estimate. Those of the other parties of its intention to carry out that project at sole risk. The other parties may give counter- notice that they Parties who wish to participate in the project must give notice to the other Parties within sixty (60) days after receipt thereof butreceiving the proposal. With respect to projects mentioned under Article 18.2, where a drilling rig is on the location and has not been releasedlitra c), the period is reduced to seventy-two (72) hours after receipt thereof. The periods set forth in this Article 11 (3) term shall be extended for any period of time mutually agreed by the parties as necessary or desirable for acquiring or developing additional information on the sole risk project48 hours.
4. 18.5 If all a number of Parties with Participating interest satisfying the other parties elect to participate in the project identified in the proposing party's requirements for adoption of a decision have given notice within the period thereof provided, such project is considered as being approved by the operating committee and the provisions of Article 4 (8) of this Participation Agreement shall apply. Draft Production Sharing Contract Block L28 Ministry of Energy Page 86
5. In the event that less than all the parties elect they want to participate in the project, the parties which elected to participate (hereafter referred to as "sole risk parties") project with the appurtenant work program and budget shall be entitled considered to have the sole risk project carried out. The interest of each sole risk party in a sole risk project shall be in proportion to its participation interest in this Participation Agreement, or in such other proportion as the sole risk parties may agree. Any sole risk project shall be carried out at the sole risk, cost and expense approved on behalf of the sole risk parties in the proportion of their respective interests.
6. A sole risk project joint venture and shall be carried out by the operator on behalf Operator as a joint venture project. If the requirements for adoption of a decision have not been satisfied, the project shall be completed for the account and risk of those Parties which have given notice that they want to participate.
18.6 In sole risk projects each Party participates in proportion to his Participating interest, unless the Parties otherwise agree.
18.7 Sole risk projects shall be carried out by the Operator. If the Operator is not a participant, one of the sole risk parties under the provisions of this participation agreement. No sole risk project other participants may be commenced after one hundred approved as operator for the project.
18.8 The participating Parties are entitled, on reasonable conditions established by the management committee, to use the property and eighty (180) days following the expiration equipment of the notice period prescribed in Article 11 (3)joint venture to carry out the project, but the operator shall commence work as promptly as reasonably possible if the notice period of seventy two (72) hours, set forth in Article 11 (3), applies. The operator shall complete the sole risk project with due diligence provided that it this does not jeopardize, hinder or unreasonably interfere with petroleum operations carried out under disturb the Contract and adopted by the operating committee pursuant to Article 4 of this Participation Agreement. joint activities.
18.9 The sole risk parties may use Operator shall keep separate accounts for the sole risk project any production, handling, processing and/or transporting facilities, which are joint property, subject project. The account shall be submitted to a determination by the operating management committee as and to usage fees, availability all of capacity and production compatibilitythe Parties.
7. In connection with any sole risk project-
(a) the sole risk project will be carried out under the overall supervision and control of the sole risk parties in lieu of the operating committee;
(b) the computation of costs and expenses of the sole risk project incurred by the sole risk parties shall be made in accordance with the principles set out in exhibit “A" attached hereto;
(c) the operator carrying out the sole risk project shall maintain separate books, records and accounts (including bank accounts) for the sole risk project which shall be subject to the same right of examination and audit by the sole risk parties;
(d) the costs and expenses of the sole risk project shall not be reflected in the statements and billing rendered by the operator for petroleum operations under the Participation Agreement; and Draft Production Sharing Contract Block L28 Ministry of Energy Page 87
(e) if the operator is carrying out a sole risk project on behalf of the sole risk parties, the operator shall be entitled to request the sole risk parties in connection with the sole risk project to advance their share of the estimated expenditure and shall not use joint account funds or be required to use its own funds for the purpose of paying the costs and expenses of the sole risk project; furthermore the operator shall not be obliged to commence or, having commenced, to continue the sole risk project unless and until relevant advances have been received from the sole risk parties.
8. 18.10 The sole risk parties shall indemnify and hold harmless the other parties against all actions, claims, demands and proceedings whatsoever brought by any third party arising out of or in connection with the sole risk project and shall further indemnify the other parties against all damages, costs, losses and expenses whatsoever directly or indirectly caused to or incurred by them as a result of anything done or omitted to be done in the course of carrying out such sole risk project.
9. Subject to the provision of Article 11 (10) below, the sole risk project, including data and information, is wholly in its entirety owned by the sole risk parties in accordance with the provisions participating Parties and is managed by a separate management committee, consisting of the Contract, but the sole risk parties shall keep the other parties informed about the projectparticipating Parties only. In the event that such project results in an increase of production of petroleum from the participation area, the portion of such increase, which is available to the Contractor, shall be owned solely by the sole risk parties. Each of them shall have the right and obligation to take in kind, and separately dispose of its proportional share of supplementary petroleum production.
10. Any party or parties which are not participating in the sole risk project may, by giving thirty (30) days' notice to the sole risk parties, become participants in such project, at any time after the sole risk parties have recovered from the supplementary petroleum production the following sums of money to which they are entitled on the project:Article
Appears in 2 contracts
Sources: Joint Operating Agreement, Joint Operating Agreement
SOLE RISK OPERATIONS. 1. Any party may undertake petroleum operations at sole risk (hereinafter referred to as "sole risk project") in a participation area, subject to the provisions of this Article.
2. The following types of sole risk project may be proposed-
(a) the drilling of a well or the deepening, side-tracking, completing, plugging back, testing or reworking of an existing well drilled for the joint account of the parties, in order to test a formation in which no jointly-owned well has been completed as a well producing or capable of producing petroleum;
(b) The installation of production and transportation facilities.
3. The conduct of a project in a development area may not be the subject of a sole risk notice under this Article until after it has been proposed in complete form to the operating committee for consideration pursuant to Article 4 hereof and has not been approved within the period therein provided. In the event that such project fails to obtain the requisite approval of the operating committee, then any party may serve notice on the other parties of its intention to carry out that project at sole risk. The other parties may give counter- notice that they wish to participate in the project within sixty (60) days after receipt thereof but, where a drilling rig is on the location and has not been released, the period is reduced to seventy-two (72) hours after receipt thereof. The periods set forth in this Article 11 (3) shall be extended for any period of time mutually agreed by the parties as necessary or desirable for acquiring or developing additional information on the sole risk project.. Production Sharing Contract Block L16 Ministry of Energy Page 86
4. If all the other parties elect to participate in the project identified in the proposing party's notice within the period thereof provided, such project is considered as being approved by the operating committee and the provisions of Article 4 (8) of this Participation Agreement shall apply. Draft Production Sharing Contract Block L28 Ministry of Energy Page 86.
5. In the event that less than all the parties elect to participate in the project, the parties which elected to participate (hereafter referred to as "sole risk parties") shall be entitled to have the sole risk project carried out. The interest of each sole risk party in a sole risk project shall be in proportion to its participation interest in this Participation Agreement, or in such other proportion as the sole risk parties may agree. Any sole risk project shall be carried out at the sole risk, cost and expense of the sole risk parties in the proportion of their respective interests.
6. A sole risk project shall be carried out by the operator on behalf of the sole risk parties under the provisions of this participation agreement. No sole risk project may be commenced after one hundred and eighty (180) days following the expiration of the notice period prescribed in Article 11 (3), but the operator shall commence work as promptly as reasonably possible if the notice period of seventy two (72) hours, set forth in Article 11 (3), applies. The operator shall complete the sole risk project with due diligence provided that it does not jeopardize, hinder or unreasonably interfere with petroleum operations carried out under the Contract and adopted by the operating committee pursuant to Article 4 of this Participation Agreement. The sole risk parties may use for the sole risk project any production, handling, processing and/or transporting facilities, which are joint property, subject to a determination by the operating committee as to usage fees, availability of capacity and production compatibility.
7. In connection with any sole risk project-
(a) the sole risk project will be carried out under the overall supervision and control of the sole risk parties in lieu of the operating committee;
(b) the computation of costs and expenses of the sole risk project incurred by the sole risk parties shall be made in accordance with the principles set out in exhibit “A" attached hereto;
(c) the operator carrying out the sole risk project shall maintain separate books, records and accounts (including bank accounts) for the sole risk project which shall be subject to the same right of examination and audit by the sole risk parties;
(d) the costs and expenses of the sole risk project shall not be reflected in the statements and billing rendered by the operator for petroleum operations under the Participation Agreement; and Draft Production Sharing Contract Block L28 L16 Ministry of Energy Page 87
(e) if the operator is carrying out a sole risk project on behalf of the sole risk parties, the operator shall be entitled to request the sole risk parties in connection with the sole risk project to advance their share of the estimated expenditure and shall not use joint account funds or be required to use its own funds for the purpose of paying the costs and expenses of the sole risk project; furthermore the operator shall not be obliged to commence or, having commenced, to continue the sole risk project unless and until relevant advances have been received from the sole risk parties.
8. The sole risk parties shall indemnify and hold harmless the other parties against all actions, claims, demands and proceedings whatsoever brought by any third party arising out of or in connection with the sole risk project and shall further indemnify the other parties against all damages, costs, losses and expenses whatsoever directly or indirectly caused to or incurred by them as a result of anything done or omitted to be done in the course of carrying out such sole risk project.
9. Subject to the provision of Article 11 (10) below, the sole risk project, including data and information, is wholly owned by the sole risk parties in accordance with the provisions of the Contract, but the sole risk parties shall keep the other parties informed about the project. In the event that such project results in an increase of production of petroleum from the participation area, the portion of such increase, which is available to the Contractor, shall be owned solely by the sole risk parties. Each of them shall have the right and obligation to take in kind, and separately dispose of its proportional share of supplementary petroleum production.
10. Any party or parties which are not participating in the sole risk project may, by giving thirty (30) days' notice to the sole risk parties, become participants in such project, at any time after the sole risk parties have recovered from the supplementary petroleum production the following sums of money to which they are entitled on the project:
Appears in 2 contracts
Sources: Production Sharing Contract, Production Sharing Contract
SOLE RISK OPERATIONS. 1. Any party may undertake petroleum operations at sole risk (hereinafter referred to as "sole risk project") in a participation area, subject to the provisions of this Article.
2. The following types of sole risk project may be proposed-
(a) the drilling of a well or the deepening, side-tracking, completing, plugging back, testing or reworking of an existing well drilled for the joint account of the parties, in order to test a formation in which no jointly-owned well has been completed as a well producing or capable of producing petroleum;
(b) The installation of production and transportation facilities.
3. The conduct of a project in a development area may not be the subject of a sole risk notice under this Article until after it has been proposed in complete form to the operating committee for consideration pursuant to Article 4 hereof and has not been approved within the period therein provided. In the event that such project fails to obtain the requisite approval of the operating committee, then any party may serve notice on the other parties of its intention to carry out that project at sole risk. The other parties may give counter- notice that they wish to participate in the project within sixty (60) days after receipt thereof but, where a drilling rig is on the location and has not been released, the period is reduced to seventy-two (72) hours after receipt thereof. The periods set forth in this Article 11 (3) shall be extended for any period of time mutually agreed by the parties as necessary or desirable for acquiring or developing additional information on the sole risk project.
4. If all the other parties elect to participate in the project identified in the proposing party's notice within the period thereof provided, such project is considered as being approved by the operating committee and the provisions of Article 4 (8) of this Participation Agreement shall apply. Draft Production Sharing Contract Block L28 L27 Ministry of Energy Page 86
5. In the event that less than all the parties elect to participate in the project, the parties which elected to participate (hereafter referred to as "sole risk parties") shall be entitled to have the sole risk project carried out. The interest of each sole risk party in a sole risk project shall be in proportion to its participation interest in this Participation Agreement, or in such other proportion as the sole risk parties may agree. Any sole risk project shall be carried out at the sole risk, cost and expense of the sole risk parties in the proportion of their respective interests.
6. A sole risk project shall be carried out by the operator on behalf of the sole risk parties under the provisions of this participation agreement. No sole risk project may be commenced after one hundred and eighty (180) days following the expiration of the notice period prescribed in Article 11 (3), but the operator shall commence work as promptly as reasonably possible if the notice period of seventy two (72) hours, set forth in Article 11 (3), applies. The operator shall complete the sole risk project with due diligence provided that it does not jeopardize, hinder or unreasonably interfere with petroleum operations carried out under the Contract and adopted by the operating committee pursuant to Article 4 of this Participation Agreement. The sole risk parties may use for the sole risk project any production, handling, processing and/or transporting facilities, which are joint property, subject to a determination by the operating committee as to usage fees, availability of capacity and production compatibility.
7. In connection with any sole risk project-
(a) the sole risk project will be carried out under the overall supervision and control of the sole risk parties in lieu of the operating committee;
(b) the computation of costs and expenses of the sole risk project incurred by the sole risk parties shall be made in accordance with the principles set out in exhibit “A" attached hereto;
(c) the operator carrying out the sole risk project shall maintain separate books, records and accounts (including bank accounts) for the sole risk project which shall be subject to the same right of examination and audit by the sole risk parties;
(d) the costs and expenses of the sole risk project shall not be reflected in the statements and billing rendered by the operator for petroleum operations under the Participation Agreement; and Draft Production Sharing Contract Block L28 L27 Ministry of Energy Page 87
(e) if the operator is carrying out a sole risk project on behalf of the sole risk parties, the operator shall be entitled to request the sole risk parties in connection with the sole risk project to advance their share of the estimated expenditure and shall not use joint account funds or be required to use its own funds for the purpose of paying the costs and expenses of the sole risk project; furthermore the operator shall not be obliged to commence or, having commenced, to continue the sole risk project unless and until relevant advances have been received from the sole risk parties.
8. The sole risk parties shall indemnify and hold harmless the other parties against all actions, claims, demands and proceedings whatsoever brought by any third party arising out of or in connection with the sole risk project and shall further indemnify the other parties against all damages, costs, losses and expenses whatsoever directly or indirectly caused to or incurred by them as a result of anything done or omitted to be done in the course of carrying out such sole risk project.
9. Subject to the provision of Article 11 (10) below, the sole risk project, including data and information, is wholly owned by the sole risk parties in accordance with the provisions of the Contract, but the sole risk parties shall keep the other parties informed about the project. In the event that such project results in an increase of production of petroleum from the participation area, the portion of such increase, which is available to the Contractor, shall be owned solely by the sole risk parties. Each of them shall have the right and obligation to take in kind, and separately dispose of its proportional share of supplementary petroleum production.
10. Any party or parties which are not participating in the sole risk project may, by giving thirty (30) days' notice to the sole risk parties, become participants in such project, at any time after the sole risk parties have recovered from the supplementary petroleum production the following sums of money to which they are entitled on the project:
Appears in 2 contracts
Sources: Production Sharing Contract, Production Sharing Contract
SOLE RISK OPERATIONS. 1. 11.1 Any party Party may undertake petroleum operations Petroleum Operations at its sole risk (in the Participation Area, in accordance with the provisions of this Article. Such sole-risk Petroleum Operations, which include not only Drilling and the construction phase of the project but also operations connected with sole-risk facilities, are hereinafter referred to as "sole risk projectSole-Risk Projects") in a participation area, subject to the provisions of this Article.
2. 11.2 The following are the only types of sole risk project Sole-Risk Projects which may be proposed-proposed:
11.2.1 The Drilling (a) the drilling excluding deepening, sidetracking or re-completion of a well or the deepeningoriginally drilled pursuant to a Joint Operation), side-tracking, completing, plugging back, testing or reworking completion and equipping for production of an existing Exploration well drilled for within the joint account of the parties, Participation Area in order to test a formation in which no jointly-owned well has been completed on behalf of all Parties as a well producing or capable of producing petroleum;Hydrocarbons; or
(b) 11.2.2 The installation Drilling, completion and equipping for production of an Appraisal well designed to delineate a Discovery made pursuant to the Exploration well described in 11.2.1 above; or
11.2.3 The development of a Discovery made pursuant to the Exploration well described in 11.2.1 above; or
11.2.4 Construction of storage and transportation facilities the purpose of which is not to accelerate the rate of production and transportation facilitiesof Hydrocarbons from the Participation Area. No Sole-Risk Project may be conducted which conflicts with a Joint Operation.
3. 11.3 The conduct of a project in a development area the Participation Area may not be the subject of a sole risk Sole-Risk notice under this Article until after unless it has been proposed in complete proper form to the operating committee Exploitation Committee for consideration as a Joint Operation pursuant to the provisions of Article 4 hereof of this Agreement, and has not been approved by the Exploitation Committee within the period therein provided.
a) For proposals involving the use of a drilling rig that is standing by in the Contract Area, such notice right shall be exercisable for twenty-four (24) hours after the time specified in Article 4.5 of this Agreement has expired; .
b) For proposals to develop a Discovery, such notice right shall be exercisable for sixty (60) Days after the date the Exploitation Committee was required to consider such proposal pursuant to Article 4.5 of this Agreement;
c) For all other proposals, such notice right shall be exercisable for thirty (30) Days after the date the Exploitation Committee was required to consider such proposal pursuant to Article 4.5 of this Agreement. In the event Such Sole-Risk notice shall specify that such project fails operation is proposed as a Sole Risk Project, the work to obtain be performed, the requisite approval location, and the objectives and estimated cost of the operating committee, then any party may serve notice on the other parties of its intention to carry out that project at sole risksuch operation. The other parties Parties may give counter- counter-notice that within (i) twenty-four (24) hours in the case of 11.3(a) above, (ii) thirty (30) days in the case of 11.3(b) above, and (iii) twenty (20) days in the case of 11.3(c) above after receipt of such Sole Risk notice in which they wish state their decision to participate in the project within sixty (60) days after receipt thereof but, where a drilling rig is on the location and has not been released, the period is reduced to seventy-two (72) hours after receipt thereofProject. The periods period set forth in this Article 11 (3) article shall be extended for any period a length of time mutually unanimously agreed by the parties Parties as may be necessary or desirable for acquiring or developing the collection and acquisition of additional information on the sole risk projectSole-Risk Project. Failure of a Party to whom a Sole-Risk notice is delivered to properly reply within the period specified above shall constitute an election by that Party not to participate in the proposed Sole-Risk Project.
4. 11.4 If all the other parties Parties elect to participate in the project identified in the proposing party's notice Sole Risk Project within the time period thereof providedspecified in Article 11.3 of this Agreement, such project is considered as being Project shall be deemed approved by the operating committee and Exploitation Committee as a Joint Operation pursuant to the provisions of Article 4 (8) 4.8 of this Participation Agreement shall apply. Draft Production Sharing Contract Block L28 Ministry of Energy Page 86Agreement.
5. 11.5 In the event that less than all the parties one or many Parties elect to participate in the projectSole-Risk Project, the parties which elected to participate such Parties (hereafter hereinafter referred to as "sole risk partiesSole-Risk Parties") shall be entitled to have carry out the sole risk project carried outSole-Risk Project. The interest of each sole risk party Parties electing not to participate in a sole risk project shall be in proportion to its participation interest in this Participation Agreementthe Sole-Risk Project, or in such other proportion as the sole risk parties may agree. Any sole risk project shall be carried out at the sole risk, cost and expense of the sole risk parties in the proportion of their respective interests.
6. A sole risk project shall be carried out by the operator on behalf of the sole risk parties under the provisions of this participation agreement. No sole risk project may be commenced after one hundred and eighty (180) days following the expiration of the those failing to properly reply to notice period prescribed in Article 11 (3), but the operator shall commence work as promptly as reasonably possible if the notice period of seventy two (72) hours, set forth in Article 11 (3), applies. The operator shall complete the sole risk project with due diligence provided that it does not jeopardize, hinder or unreasonably interfere with petroleum operations carried out under the Contract and adopted by the operating committee pursuant to Article 4 of this Participation Agreement. The sole risk parties may use for the sole risk project any production11.3 above, handling, processing and/or transporting facilities, which are joint property, subject hereinafter referred to a determination by the operating committee as to usage fees, availability of capacity and production compatibility“Non Sole-Risk Parties”.
7. In connection with any sole risk project-11.6 Consequences of non-participation in Sole-Risk Projects shall be as follows :
(a) Subject to Article 11.6(b) below, each Non-Sole-Risk Party shall be deemed to have relinquished to the sole risk project will Sole-Risk Parties, and the Sole-Risk Parties shall be carried out under deemed to own, in proportion to their respective participating interests in any Sole-Risk Project:
(1) All of each such Non-Sole-Risk Party's right to participate in further operations in the overall supervision well in which the Sole-Risk Project was conducted and control on any Discovery made or appraised in the course of such Sole-Risk Project; and
(2) All of each such Non-Sole-Risk Party's right pursuant to the sole risk parties Contract to take and dispose of Hydrocarbons produced and saved:
(i) From the well in lieu which such Sole-Risk Project was conducted, and
(ii) From any ▇▇▇▇▇ drilled to appraise or develop a Discovery made or appraised in the course of the operating committee;such Sole-Risk Project.
(b) A Non-Sole-Risk Party shall have only the computation of costs and expenses of following options to reinstate the sole risk project incurred by the sole risk parties shall be made in accordance with the principles set out in exhibit “A" attached hereto;rights it relinquished pursuant to Article 11.6(a) above:
(c1) If the operator carrying out the sole risk project shall maintain separate books, records and accounts (including bank accounts) for the sole risk project which shall be subject Sole-Risk Parties decide to the same right of examination and audit by the sole risk parties;
(d) the costs and expenses of the sole risk project shall not be reflected in the statements and billing rendered by the operator for petroleum operations under the Participation Agreement; and Draft Production Sharing Contract Block L28 Ministry of Energy Page 87
(e) if the operator is carrying out appraise a sole risk project on behalf of the sole risk parties, the operator shall be entitled to request the sole risk parties in connection with the sole risk project to advance their share of the estimated expenditure and shall not use joint account funds or be required to use its own funds for the purpose of paying the costs and expenses of the sole risk project; furthermore the operator shall not be obliged to commence or, having commenced, to continue the sole risk project unless and until relevant advances have been received from the sole risk parties.
8. The sole risk parties shall indemnify and hold harmless the other parties against all actions, claims, demands and proceedings whatsoever brought by any third party arising out of or in connection with the sole risk project and shall further indemnify the other parties against all damages, costs, losses and expenses whatsoever directly or indirectly caused to or incurred by them as a result of anything done or omitted to be done Discovery made in the course of carrying out such sole risk project.
9. Subject to the provision of Article 11 (10) belowa Sole-Risk Project, the sole risk project, including data and information, is wholly owned by Sole-Risk Parties shall submit to each Non-Sole-Risk Party the sole risk parties in accordance with the provisions of the Contract, but the sole risk parties shall keep the other parties informed about the projectapproved appraisal program. In the event that such project results in an increase of production of petroleum from the participation area, the portion of such increase, which is available to the Contractor, shall be owned solely by the sole risk parties. Each of them shall have the right and obligation to take in kind, and separately dispose of its proportional share of supplementary petroleum production.
10. Any party or parties which are not participating in the sole risk project may, by giving For thirty (30) days' notice to the sole risk parties, become participants in such project, at any time after the sole risk parties have recovered from the supplementary petroleum production the following sums of money to which they are entitled on the project:Days (or twenty four
Appears in 2 contracts
Sources: Production Sharing Contract, Production Sharing Contract
SOLE RISK OPERATIONS. 1. Any party may undertake petroleum operations at sole risk (hereinafter referred to as "sole risk project") in a participation area, subject to the provisions of this Article.
2. The following types of sole risk project may be proposed-
(a) the drilling of a well or the deepening, side-tracking, completing, plugging back, testing or reworking of an existing well drilled for the joint account of the parties, in order to test a formation in which no jointly-owned well has been completed as a well producing or capable of producing petroleum;
(b) The installation of production and transportation facilities.
3. The conduct of a project in a development area may not be the subject of a sole risk notice under this Article until after it has been proposed in complete form to the operating committee for consideration pursuant to Article 4 hereof and has not been approved within the period therein provided. In the event that such project fails to obtain the requisite approval of the operating committee, then any party may serve notice on the other parties of its intention to carry out that project at sole risk. The other parties may give counter- counter-notice that they wish to participate in the project within sixty (60) days after receipt thereof but, where a drilling rig is on the location and has not been released, the period is reduced to seventy-two (72) hours after receipt thereof. The periods set forth in this Article 11 (3) shall be extended for any period of time mutually agreed by the parties as necessary or desirable for acquiring or developing additional information on the sole risk project.
4. If all the other parties elect to participate in the project identified in the proposing party's notice within the period thereof provided, such project is considered as being approved by the operating committee and the provisions of Article 4 (8) of this Participation Agreement shall apply. Draft Production Sharing Contract Block L28 Ministry of Energy Page 86.
5. In the event that less than all the parties elect to participate in the project, the parties which elected to participate (hereafter referred to as "sole risk parties") shall be entitled to have the sole risk project carried out. Draft Production Sharing Contract Blocks L1B Ministry of Energy Page 85 The interest of each sole risk party in a sole risk project shall be in proportion to its participation interest in this Participation Agreement, or in such other proportion as the sole risk parties may agree. Any sole risk project shall be carried out at the sole risk, cost and expense of the sole risk parties in the proportion of their respective interests.
6. A sole risk project shall be carried out by the operator on behalf of the sole risk parties under the provisions of this participation agreement. No sole risk project may be commenced after one hundred and eighty (180) days following the expiration of the notice period prescribed in Article 11 (3), but the operator shall commence work as promptly as reasonably possible if the notice period of seventy two (72) hours, set forth in Article 11 (3), applies. The operator shall complete the sole risk project with due diligence provided that it does not jeopardize, hinder or unreasonably interfere with petroleum operations carried out under the Contract and adopted by the operating committee pursuant to Article 4 of this Participation Agreement. The sole risk parties may use for the sole risk project any production, handling, processing and/or transporting facilities, which are joint property, subject to a determination by the operating committee as to usage fees, availability of capacity and production compatibility.
7. In connection with any sole risk project-
(a) the sole risk project will be carried out under the overall supervision and control of the sole risk parties in lieu of the operating committee;
(b) the computation of costs and expenses of the sole risk project incurred by the sole risk parties shall be made in accordance with the principles set out in exhibit “A" attached hereto;
(c) the operator carrying out the sole risk project shall maintain separate books, records and accounts (including bank accounts) for the sole risk project which shall be subject to the same right of examination and audit by the sole risk parties;
(d) the costs and expenses of the sole risk project shall not be reflected in the statements and billing rendered by the operator for petroleum operations under the Participation Agreement; and Draft Production Sharing Contract Block L28 Ministry of Energy Page 87and
(e) if the operator is carrying out a sole risk project on behalf of the sole risk parties, the operator shall be entitled to request the sole risk parties in connection with the sole risk project to advance their share of the estimated expenditure and shall not use joint account funds or be required to use its own funds for the purpose of paying the costs and expenses of the sole risk project; furthermore the operator shall not be obliged to commence or, having commenced, to continue the sole risk project unless Draft Production Sharing Contract Blocks L1B Ministry of Energy Page 86 and until relevant advances have been received from the sole risk parties.
8. The sole risk parties shall indemnify and hold harmless the other parties against all actions, claims, demands and proceedings whatsoever brought by any third party arising out of or in connection with the sole risk project and shall further indemnify the other parties against all damages, costs, losses and expenses whatsoever directly or indirectly caused to or incurred by them as a result of anything done or omitted to be done in the course of carrying out such sole risk project.
9. Subject to the provision of Article 11 (10) below, the sole risk project, including data and information, is wholly owned by the sole risk parties in accordance with the provisions of the Contract, but the sole risk parties shall keep the other parties informed about the project. In the event that such project results in an increase of production of petroleum from the participation area, the portion of such increase, which is available to the Contractor, shall be owned solely by the sole risk parties. Each of them shall have the right and obligation to take in kind, and separately dispose of its proportional share of supplementary petroleum production.
10. Any party or parties which are not participating in the sole risk project may, by giving thirty (30) days' notice to the sole risk parties, become participants in such project, at any time after the sole risk parties have recovered from the supplementary petroleum production the following sums of money to which they are entitled on the project:
Appears in 2 contracts
Sources: Production Sharing Contract, Production Sharing Contract
SOLE RISK OPERATIONS. 1. Any party may undertake petroleum operations at sole risk (hereinafter referred to as "sole risk project") in a participation area, subject to the provisions of this Article.
2. The following types of sole risk project may be proposed-
(a) the drilling of a well or the deepening, side-tracking, completing, plugging back, testing or reworking of an existing well drilled for the joint account of the parties, in order to test a formation in which no jointly-owned well has been completed as a well producing or capable of producing petroleum;
(b) The installation of production and transportation facilities.
3. The conduct of a project in a development area may not be the subject of a sole risk notice under this Article until after it has been proposed in complete form to the operating committee for consideration pursuant to Article 4 hereof and has not been approved within the period therein provided. In the event that such project fails to obtain the requisite approval of the operating committee, then any party may serve notice on the other parties of its intention to carry out that project at sole risk. The other parties may give counter- notice that they wish to participate in the project within sixty (60) days after receipt thereof but, where a drilling rig is on the location and has not been released, the period is reduced to seventy-two (72) hours after receipt thereof. The periods set forth in this Article 11 (3) shall be extended for any period of time mutually agreed by the parties as necessary or desirable for acquiring or developing additional information on the sole risk project.
4. If all the other parties elect to participate in the project identified in the proposing party's notice within the period thereof provided, such project is considered as being approved by the operating committee and the provisions of Article 4 (8) of this Participation Agreement shall apply. Draft Production Sharing Contract Block L28 Ministry of Energy Page 86.
5. In the event that less than all the parties elect to participate in the project, the parties which elected to participate (hereafter referred to as "sole risk parties") shall be entitled to have the sole risk project carried out. The interest of each sole risk party in a sole risk project shall be in proportion to its participation interest in this Participation Agreement, or in such other proportion as the sole risk parties may agree. Any sole risk project shall be carried out at the sole risk, cost and expense of the sole risk parties in the proportion of their respective interests.
6. A sole risk project shall be carried out by the operator on behalf of the sole risk parties under the provisions of this participation agreement. No sole risk project may be commenced after one hundred and eighty (180) days following the expiration of the notice period prescribed in Article 11 (3), but the operator shall commence work as promptly as reasonably possible if the notice period of seventy two (72) hours, set forth in Article 11 (3), applies. The operator shall complete the sole risk project with due diligence provided that it does not jeopardize, hinder or unreasonably interfere with petroleum operations carried out under the Contract and adopted by the operating committee pursuant to Article 4 of this Participation Agreement. The sole risk parties may use for the sole risk project any production, handling, processing and/or transporting facilities, which are joint property, subject to a determination by the operating committee as to usage fees, availability of capacity and production compatibility.
7. In connection with any sole risk project-
(a) the sole risk project will be carried out under the overall supervision and control of the sole risk parties in lieu of the operating committee;
(b) the computation of costs and expenses of the sole risk project incurred by the sole risk parties shall be made in accordance with the principles set out in exhibit “A" attached hereto;
(c) the operator carrying out the sole risk project shall maintain separate books, records and accounts (including bank accounts) for the sole risk project which shall be subject to the same right of examination and audit by the sole risk parties;
(d) the costs and expenses of the sole risk project shall not be reflected in the statements and billing rendered by the operator for petroleum operations under the Participation Agreement; and Draft Production Sharing Contract Block L28 Ministry of Energy Page 87and
(e) if the operator is carrying out a sole risk project on behalf of the sole risk parties, the operator shall be entitled to request the sole risk parties in connection with the sole risk project to advance their share of the estimated expenditure and shall not use joint account funds or be required to use its own funds for the purpose of paying the costs and expenses of the sole risk project; furthermore the operator shall not be obliged to commence or, having commenced, to continue the sole risk project unless and until relevant advances have been received from the sole risk parties.
8. The sole risk parties shall indemnify and hold harmless the other parties against all actions, claims, demands and proceedings whatsoever brought by any third party arising out of or in connection with the sole risk project and shall further indemnify the other parties against all damages, costs, losses and expenses whatsoever directly or indirectly caused to or incurred by them as a result of anything done or omitted to be done in the course of carrying out such sole risk project.
9. Subject to the provision of Article 11 (10) below, the sole risk project, including data and information, is wholly owned by the sole risk parties in accordance with the provisions of the Contract, but the sole risk parties shall keep the other parties informed about the project. In the event that such project results in an increase of production of petroleum from the participation area, the portion of such increase, which is available to the Contractor, shall be owned solely by the sole risk parties. Each of them shall have the right and obligation to take in kind, and separately dispose of its proportional share of supplementary petroleum production.
10. Any party or parties which are not participating in the sole risk project may, by giving thirty (30) days' notice to the sole risk parties, become participants in such project, at any time after the sole risk parties have recovered from the supplementary petroleum production the following sums of money to which they are entitled on the project:
Appears in 1 contract
SOLE RISK OPERATIONS. 1. Any party may undertake petroleum operations at sole risk (hereinafter referred to as "sole risk project") in a participation area, subject to the provisions of this Article.
2. The following types of sole risk project may be proposed-
(a) the drilling of a well or the deepening, side-tracking, completing, plugging back, testing or reworking of an existing well drilled for the joint account of the parties, in order to test a formation in which no jointly-owned well has been completed as a well producing or capable of producing petroleum;
(b) The installation of production and transportation facilities.
3. The conduct of a project in a development area may not be the subject of a sole risk notice under this Article until after it has been proposed in complete form to the operating committee for consideration pursuant to Article 4 hereof and has not been approved within the period therein provided. In the event that such project fails to obtain the requisite approval of the operating committee, then any party may serve notice on the other parties of its intention to carry out that project at sole risk. The other parties may give counter- notice that they wish to participate in the project within sixty (60) days after receipt thereof but, where a drilling rig is on the location and has not been released, the period is reduced to seventy-two (72) hours after receipt thereof. The periods set forth in this Article 11 (3) shall be extended for any period of time mutually agreed by the parties as necessary or desirable for acquiring or developing additional information on the sole risk project.
4. If all the other parties elect to participate in the project identified in the proposing party's notice within the period thereof provided, such project is considered as being approved by the operating committee and the provisions of Article 4 (8) of this Participation Agreement shall apply. Draft Production Sharing Contract Block L28 Ministry of Energy Page 86.
5. In the event that less than all the parties elect to participate in the project, the parties which elected to participate (hereafter referred to as "sole risk parties") shall be entitled to have the sole risk project carried out. The interest of each sole risk party in a sole risk project shall be in proportion to its participation interest in this Participation Agreement, or in such other proportion as the sole risk parties may agree. Any sole risk project shall be carried out at the sole risk, cost and expense of the sole risk parties in the proportion of their respective interests.
6. A sole risk project shall be carried out by the operator on behalf of the sole risk parties under the provisions of this participation agreement. No sole risk project may be commenced after one hundred and eighty (180) days following the expiration of the notice period prescribed in Article 11 (3), but the operator shall commence work as promptly as reasonably possible if the notice period of seventy two (72) hours, set forth in Article 11 (3), applies. The operator shall complete the sole risk project with due diligence provided that it does not jeopardize, hinder or unreasonably interfere with petroleum operations carried out under the Contract and adopted by the operating committee pursuant to Article 4 of this Participation Agreement. The sole risk parties may use for the sole risk project any production, handling, processing and/or transporting facilities, which are joint property, subject to a determination by the operating committee as to usage fees, availability of capacity and production compatibility.
7. In connection with any sole risk project-
(a) the sole risk project will be carried out under the overall supervision and control of the sole risk parties in lieu of the operating committee;
(b) the computation of costs and expenses of the sole risk project incurred by the sole risk parties shall be made in accordance with the principles set out in exhibit “A" attached hereto;
(c) the operator carrying out the sole risk project shall maintain separate books, records and accounts (including bank accounts) for the sole risk project which shall be subject to the same right of examination and audit by the sole risk parties;
(d) the costs and expenses of the sole risk project shall not be reflected in the statements and billing rendered by the operator for petroleum operations under the Participation Agreement; and Draft Production Sharing Contract Block L28 Ministry of Energy Page 87and
(e) if the operator is carrying out a sole risk project on behalf of the sole risk parties, the operator shall be entitled to request the sole risk parties in connection with the sole risk project to advance their share of the estimated expenditure and shall not use joint account funds or be required to use its own funds for the purpose of paying the costs and expenses of the sole risk project; furthermore the operator shall not be obliged to commence or, having commenced, to continue the sole risk project unless and until relevant advances have been received from the sole risk parties.
8. The sole risk parties shall indemnify and hold harmless the other parties against all actions, claims, demands and proceedings whatsoever brought by any third party arising out of or in connection with the sole risk project and shall further indemnify the other parties against all damages, costs, losses and expenses whatsoever directly or indirectly caused to or incurred by them as a result of anything done or omitted to be done in the course of carrying out such sole risk project.
9. Subject to the provision of Article 11 (10) below, the sole risk project, including data and information, is wholly owned by the sole risk parties in accordance with the provisions of the Contract, but the sole risk parties shall keep the other parties informed about the project. In the event that such project results in an increase of production of petroleum from the participation area, the portion of such increase, which is available to the Contractor, shall be owned solely by the sole risk parties. Each of them shall have the right and obligation to take in kind, and separately dispose of its proportional share of supplementary petroleum production.
10. Any party or parties which are not participating in the sole risk project may, by giving thirty (30) days' notice to the sole risk parties, become participants in such project, at any time after the sole risk parties have recovered from the supplementary petroleum production the following sums of money to which they are entitled on the project:
Appears in 1 contract
SOLE RISK OPERATIONS. 1. Any party may undertake petroleum operations at sole risk (hereinafter referred to as "sole risk project") in a participation area, subject to the provisions of this Article.
2. The following types of sole risk project may be proposed-
(a) the drilling of a well or the deepening, side-tracking, completing, plugging back, testing or reworking of an existing well drilled for the joint account of the parties, in order to test a formation in which no jointly-owned well has been completed as a well producing or capable of producing petroleum;
(b) The installation of production and transportation facilities.
3. The conduct of a project in a development area may not be the subject of a sole risk notice under this Article until after it has been proposed in complete form to the operating committee for consideration pursuant to Article 4 hereof and has not been approved within the period therein provided. In the event that such project fails to obtain the requisite approval of the operating committee, then any party may serve notice on the other parties of its intention to carry out that project at sole risk. The other parties may give counter- notice that they wish to participate in the project within sixty (60) days after receipt thereof but, where a drilling rig is on the location and has not been released, the period is reduced to seventy-two (72) hours after receipt thereof. The periods set forth in this Article 11 (3) shall be extended for any period of time mutually agreed by the parties as necessary or desirable for acquiring or developing additional information on the sole risk project.
4. If all the other parties elect to participate in the project identified in the proposing party's notice within the period thereof provided, such project is considered as being approved by the operating committee and the provisions of Article 4 (8) of this Participation Agreement shall apply. Draft Production Sharing Contract Block L28 11A Ministry of Energy Page 8687
5. In the event that less than all the parties elect to participate in the project, the parties which elected to participate (hereafter referred to as "sole risk parties") shall be entitled to have the sole risk project carried out. The interest of each sole risk party in a sole risk project shall be in proportion to its participation interest in this Participation Agreement, or in such other proportion as the sole risk parties may agree. Any sole risk project shall be carried out at the sole risk, cost and expense of the sole risk parties in the proportion of their respective interests.
6. A sole risk project shall be carried out by the operator on behalf of the sole risk parties under the provisions of this participation agreement. No sole risk project may be commenced after one hundred and eighty (180) days following the expiration of the notice period prescribed in Article 11 (3), but the operator shall commence work as promptly as reasonably possible if the notice period of seventy two (72) hours, set forth in Article 11 (3), applies. The operator shall complete the sole risk project with due diligence provided that it does not jeopardize, hinder or unreasonably interfere with petroleum operations carried out under the Contract and adopted by the operating committee pursuant to Article 4 of this Participation Agreement. The sole risk parties may use for the sole risk project any production, handling, processing and/or transporting facilities, which are joint property, subject to a determination by the operating committee as to usage fees, availability of capacity and production compatibility.
7. In connection with any sole risk project-
(a) the sole risk project will be carried out under the overall supervision and control of the sole risk parties in lieu of the operating committee;
(b) the computation of costs and expenses of the sole risk project incurred by the sole risk parties shall be made in accordance with the principles set out in exhibit “A" attached hereto;
(c) the operator carrying out the sole risk project shall maintain separate books, records and accounts (including bank accounts) for the sole risk project which shall be subject to the same right of examination and audit by the sole risk parties;
(d) the costs and expenses of the sole risk project shall not be reflected in the statements and billing rendered by the operator for petroleum operations under the Participation Agreement; and Draft Production Sharing Contract Block L28 11A Ministry of Energy Page 8788
(e) if the operator is carrying out a sole risk project on behalf of the sole risk parties, the operator shall be entitled to request the sole risk parties in connection with the sole risk project to advance their share of the estimated expenditure and shall not use joint account funds or be required to use its own funds for the purpose of paying the costs and expenses of the sole risk project; furthermore the operator shall not be obliged to commence or, having commenced, to continue the sole risk project unless and until relevant advances have been received from the sole risk parties.
8. The sole risk parties shall indemnify and hold harmless the other parties against all actions, claims, demands and proceedings whatsoever brought by any third party arising out of or in connection with the sole risk project and shall further indemnify the other parties against all damages, costs, losses and expenses whatsoever directly or indirectly caused to or incurred by them as a result of anything done or omitted to be done in the course of carrying out such sole risk project.
9. Subject to the provision of Article 11 (10) below, the sole risk project, including data and information, is wholly owned by the sole risk parties in accordance with the provisions of the Contract, but the sole risk parties shall keep the other parties informed about the project. In the event that such project results in an increase of production of petroleum from the participation area, the portion of such increase, which is available to the Contractor, shall be owned solely by the sole risk parties. Each of them shall have the right and obligation to take in kind, and separately dispose of its proportional share of supplementary petroleum production.
10. Any party or parties which are not participating in the sole risk project may, by giving thirty (30) days' notice to the sole risk parties, become participants in such project, at any time after the sole risk parties have recovered from the supplementary petroleum production the following sums of money to which they are entitled on the project:: In the case of a project under Article 11 (2) (a) hereof six hundred per cent (600%) of the Sole Risk cost of such project, plus one hundred per cent (100%) of the cost of operating such well incurred by the Sole Risk Parties. In the case of a project under Article 11 (2) (b) hereof..........per cent (.......%) of the Sole Risk cost of such project, plus one hundred per cent (100%) of the cost of operating such facilities. The value of the supplementary production to which a Sole Risk Party is entitled shall be the market value in sales at arm's length, determined in accordance with clause 26 of the Contract. From and after the election of any party or parties to become participants in such project, all relevant ▇▇▇▇▇, facilities, equipment and other property appurtenant thereto shall be owned jointly by the participating parties and each of the participating parties shall be entitled to receive its proportional share of the supplementary petroleum production. Production Sharing Contract Block 11A Ministry of Energy Page 89 12. CONFIDENTIALITY
1. All information related to the petroleum operations shall be confidential and shall not be disclosed to a person other than a party except to-
(a) An affiliate;
(b) the Government and other public authorities to the extent necessary for the purpose of any applicable law;
(c) a stock exchange to which a party is obliged to make disclosure;
(d) Contractors, consultants, legal counsels or arbitrators of a Party, where disclosure is essential;
(e) a bona fide prospective purchaser of an interest of a Party in the Contract, but that purchaser shall undertake to treat that information as confidential;
(f) a lender, where disclosure is essential; or
(g) a person to whom disclosure has been agreed by the Parties.
2. A party making a disclosure to a person described in paragraph (1) (e) or (f) shall give ten (10) days' written notice thereof to the other parties.
3. The parties shall consult with each other prior to the release of any public statement or press release, and except to the extent required by law, rule or regulation of any government authority or stock exchange, no party shall make any public statement or press release without the approval of all the other parties, which shall not be unreasonably withheld. The operator shall utilize its best efforts to co- ordinate all such public statements to the end that all Parties may effect simultaneous press releases.
4. The obligations of the parties under this Article 12 are continuing obligations and any party ceasing to be a party to this Agreement shall remain bound by this Article until this Agreement is no longer in force between any remaining parties and the Contract has expired.
Appears in 1 contract
Sources: Farmout Agreement (ERHC Energy Inc)
SOLE RISK OPERATIONS. 1. Any party 18.1 A Party may undertake petroleum operations at sole risk (hereinafter referred to propose that a project which is not adopted by the management committee be carried out as "a sole risk project") . Sole risk development shall take place in a participation area, subject to accordance with the provisions of this ArticleArticle 19.
2. 18.2 The following types activities may be carried out on a sole risk basis:
a) Geological, geophysical and stratigraphic surveys and tests;
b) Drilling of exploration ▇▇▇▇▇, resumption of drilling of exploration ▇▇▇▇▇, or drilling made to estimate reserves in connection with unitization;
c) Deeper drilling, deviation drilling or testing of zones which have already been penetrated by the drilling of an exploration well;
d) Further evaluation of a Deposit comprised by a development plan which has not been adopted pursuant to Article 15.1.
18.3 Nonetheless, sole risk operations may not take place:
a) At or in connection with delineation drilling of a Deposit which has been developed or is comprised by an adopted development plan. This, however, does not apply to drilling for purposes of estimating reserves in connection with a unitization;
b) If they may reduce the production from a Deposit which has been developed or for which a development plan has been adopted;
c) If they wholly or in part may interfere with plans or work programs adopted by the joint venture before the sole risk project may be proposed-is commenced;
(ad) Before the drilling of a well or obligatory work commitment defined in the deepening, side-tracking, completing, plugging back, testing or reworking of an existing well drilled for the joint account of the parties, in order to test a formation in which no jointly-owned well Licence has been completed as a well producing or capable of producing petroleum;
(b) The installation of production and transportation facilitiescompleted. This, however, does not apply to activities described in Article 18.2, litra c).
3. The conduct of a project in a development area may not be the subject of 18.4 A proposal to carry out a sole risk notice under this Article until after it has been proposed project shall be submitted in complete form writing to the operating committee for consideration pursuant to Article 4 hereof and has not been approved within the period therein provided. In the event that such project fails to obtain the requisite approval other Parties with a detailed description of the operating committeework to be carried out, then any party may serve notice on along with a corresponding budget estimate. Those of the other parties of its intention to carry out that project at sole risk. The other parties may give counter- notice that they Parties who wish to participate in the project must give notice to the other Parties within sixty (60) days after receipt thereof butreceiving the proposal. With respect to projects mentioned under Article 18.2, where a drilling rig is on the location and has not been releasedlitra c), the period is reduced to seventy-two (72) hours after receipt thereof. The periods set forth in this Article 11 (3) term shall be extended for any period of time mutually agreed by the parties as necessary or desirable for acquiring or developing additional information on the sole risk project48 hours.
4. 18.5 If all a number of Parties with Participating interest satisfying the other parties elect to participate in the project identified in the proposing party's requirements for adoption of a decision have given notice within the period thereof provided, such project is considered as being approved by the operating committee and the provisions of Article 4 (8) of this Participation Agreement shall apply. Draft Production Sharing Contract Block L28 Ministry of Energy Page 86
5. In the event that less than all the parties elect they want to participate in the project, the parties which elected to participate (hereafter referred to as "sole risk parties") project with the appurtenant work program and budget shall be entitled considered to have the sole risk project carried out. The interest of each sole risk party in a sole risk project shall be in proportion to its participation interest in this Participation Agreement, or in such other proportion as the sole risk parties may agree. Any sole risk project shall be carried out at the sole risk, cost and expense approved on behalf of the sole risk parties in the proportion of their respective interests.
6. A sole risk project joint venture and shall be carried out by the operator on behalf Operator as a joint venture project. If the requirements for adoption of a decision have not been satisfied, the project shall be completed for the account and risk of those Parties which have given notice that they want to participate.
18.6 In sole risk projects each Party participates in proportion to his Participating interest, unless the Parties otherwise agree.
18.7 Sole risk projects shall be carried out by the Operator. If the Operator is not a participant, one of the sole risk parties under the provisions of this participation agreement. No sole risk project other participants may be commenced after one hundred approved as operator for the project.
18.8 The participating Parties are entitled, on reasonable conditions established by the management committee, to use the property and eighty (180) days following the expiration equipment of the notice period prescribed in Article 11 (3)joint venture to carry out the project, but the operator shall commence work as promptly as reasonably possible if the notice period of seventy two (72) hours, set forth in Article 11 (3), applies. The operator shall complete the sole risk project with due diligence provided that it this does not jeopardize, hinder or unreasonably interfere with petroleum operations carried out under disturb the Contract and adopted by the operating committee pursuant to Article 4 of this Participation Agreement. joint activities.
18.9 The sole risk parties may use Operator shall keep separate accounts for the sole risk project any production, handling, processing and/or transporting facilities, which are joint property, subject project. The account shall be submitted to a determination by the operating management committee as and to usage fees, availability all of capacity and production compatibilitythe Parties.
7. In connection with any sole risk project-
(a) the sole risk project will be carried out under the overall supervision and control of the sole risk parties in lieu of the operating committee;
(b) the computation of costs and expenses of the sole risk project incurred by the sole risk parties shall be made in accordance with the principles set out in exhibit “A" attached hereto;
(c) the operator carrying out the sole risk project shall maintain separate books, records and accounts (including bank accounts) for the sole risk project which shall be subject to the same right of examination and audit by the sole risk parties;
(d) the costs and expenses of the sole risk project shall not be reflected in the statements and billing rendered by the operator for petroleum operations under the Participation Agreement; and Draft Production Sharing Contract Block L28 Ministry of Energy Page 87
(e) if the operator is carrying out a sole risk project on behalf of the sole risk parties, the operator shall be entitled to request the sole risk parties in connection with the sole risk project to advance their share of the estimated expenditure and shall not use joint account funds or be required to use its own funds for the purpose of paying the costs and expenses of the sole risk project; furthermore the operator shall not be obliged to commence or, having commenced, to continue the sole risk project unless and until relevant advances have been received from the sole risk parties.
8. 18.10 The sole risk parties shall indemnify and hold harmless the other parties against all actions, claims, demands and proceedings whatsoever brought by any third party arising out of or in connection with the sole risk project and shall further indemnify the other parties against all damages, costs, losses and expenses whatsoever directly or indirectly caused to or incurred by them as a result of anything done or omitted to be done in the course of carrying out such sole risk project.
9. Subject to the provision of Article 11 (10) below, the sole risk project, including data and information, is wholly in its entirety owned by the sole risk parties in accordance with the provisions participating Parties and is managed by a separate management committee, consisting of the Contract, but the sole risk parties shall keep the other parties informed about the projectparticipating Parties only. In the event that such project results in an increase of production of petroleum from the participation area, the portion of such increase, which is available to the Contractor, shall be owned solely by the sole risk parties. Each of them shall have the right and obligation to take in kind, and separately dispose of its proportional share of supplementary petroleum production.
10. Any party or parties which are not participating in the sole risk project may, by giving thirty (30) days' notice to the sole risk parties, become participants in such project, at any time after the sole risk parties have recovered from the supplementary petroleum production the following sums of money to which they are entitled on the project:Article
Appears in 1 contract
Sources: Exploration and Production Agreement
SOLE RISK OPERATIONS. 1. Any party 18.1 A Party may undertake petroleum operations at sole risk (hereinafter referred to propose that a project which is not adopted by the management committee be carried out as "a sole risk project") . Sole risk development shall take place in a participation area, subject to accordance with the provisions of this ArticleArticle 19.
2. 18.2 The following types activities may be carried out on a sole risk basis:
a) Geological, geophysical and stratigraphic surveys and tests;
b) Drilling of exploration ▇▇▇▇▇, resumption of drilling of exploration ▇▇▇▇▇, or drilling made to estimate reserves in connection with unitization;
c) Deeper drilling, deviation drilling or testing of zones which have already been penetrated by the drilling of an exploration well;
d) Further evaluation of a Deposit comprised by a development plan which has not been adopted pursuant to Article 15.1.
18.3 Nonetheless, sole risk operations may not take place:
a) At or in connection with delineation drilling of a Deposit which has been developed or is comprised by an adopted development plan. This, however, does not apply to drilling for purposes of estimating reserves in connection with a unitization;
b) If they may reduce the production from a Deposit which has been developed or for which a development plan has been adopted;
c) If they wholly or in part may interfere with plans or work programs adopted by the joint venture before the sole risk project may be proposed-is commenced;
(ad) Before the drilling of a well or obligatory work commitment defined in the deepening, side-tracking, completing, plugging back, testing or reworking of an existing well drilled for the joint account of the parties, in order to test a formation in which no jointly-owned well Production Licence has been completed as a well producing or capable of producing petroleum;
(b) The installation of production and transportation facilitiescompleted. This, however, does not apply to activities described in Article 18.2, litra c).
3. The conduct of a project in a development area may not be the subject of 18.4 A proposal to carry out a sole risk notice under this Article until after it has been proposed project shall be submitted in complete form writing to the operating committee for consideration pursuant to Article 4 hereof and has not been approved within the period therein provided. In the event that such project fails to obtain the requisite approval other Parties with a detailed description of the operating committeework to be carried out, then any party may serve notice on along with a corresponding budget estimate. Those of the other parties of its intention to carry out that project at sole risk. The other parties may give counter- notice that they Parties who wish to participate in the project must give notice to the other Parties within sixty (60) days after receipt thereof butreceiving the proposal. With respect to projects mentioned under Article 18.2, where a drilling rig is on the location and has not been releasedlitra c), the period is reduced to seventy-two (72) hours after receipt thereof. The periods set forth in this Article 11 (3) term shall be extended for any period of time mutually agreed by the parties as necessary or desirable for acquiring or developing additional information on the sole risk project48 hours.
4. 18.5 If all a number of Parties with Participating interest satisfying the other parties elect to participate in the project identified in the proposing party's requirements for adoption of a decision have given notice within the period thereof provided, such project is considered as being approved by the operating committee and the provisions of Article 4 (8) of this Participation Agreement shall apply. Draft Production Sharing Contract Block L28 Ministry of Energy Page 86
5. In the event that less than all the parties elect they want to participate in the project, the parties which elected to participate (hereafter referred to as "sole risk parties") project with the appurtenant work program and budget shall be entitled considered to have the sole risk project carried out. The interest of each sole risk party in a sole risk project shall be in proportion to its participation interest in this Participation Agreement, or in such other proportion as the sole risk parties may agree. Any sole risk project shall be carried out at the sole risk, cost and expense approved on behalf of the sole risk parties in the proportion of their respective interests.
6. A sole risk project joint venture and shall be carried out by the operator on behalf Operator as a joint venture project. If the requirements for adoption of a decision have not been satisfied, the project shall be completed for the account and risk of those Parties which have given notice that they want to participate.
18.6 In sole risk projects each Party participates in proportion to his Participating interest, unless the Parties otherwise agree.
18.7 Sole risk projects shall be carried out by the Operator. If the Operator is not a participant, one of the sole risk parties under the provisions of this participation agreement. No sole risk project other participants may be commenced after one hundred approved as operator for the project.
18.8 The participating Parties are entitled, on reasonable conditions established by the management committee, to use the property and eighty (180) days following the expiration equipment of the notice period prescribed in Article 11 (3)joint venture to carry out the project, but the operator shall commence work as promptly as reasonably possible if the notice period of seventy two (72) hours, set forth in Article 11 (3), applies. The operator shall complete the sole risk project with due diligence provided that it this does not jeopardize, hinder or unreasonably interfere with petroleum operations carried out under disturb the Contract and adopted by the operating committee pursuant to Article 4 of this Participation Agreement. joint activities.
18.9 The sole risk parties may use Operator shall keep separate accounts for the sole risk project any production, handling, processing and/or transporting facilities, which are joint property, subject project. The account shall be submitted to a determination by the operating management committee as and to usage fees, availability all of capacity and production compatibilitythe Parties.
7. In connection with any sole risk project-
(a) the sole risk project will be carried out under the overall supervision and control of the sole risk parties in lieu of the operating committee;
(b) the computation of costs and expenses of the sole risk project incurred by the sole risk parties shall be made in accordance with the principles set out in exhibit “A" attached hereto;
(c) the operator carrying out the sole risk project shall maintain separate books, records and accounts (including bank accounts) for the sole risk project which shall be subject to the same right of examination and audit by the sole risk parties;
(d) the costs and expenses of the sole risk project shall not be reflected in the statements and billing rendered by the operator for petroleum operations under the Participation Agreement; and Draft Production Sharing Contract Block L28 Ministry of Energy Page 87
(e) if the operator is carrying out a sole risk project on behalf of the sole risk parties, the operator shall be entitled to request the sole risk parties in connection with the sole risk project to advance their share of the estimated expenditure and shall not use joint account funds or be required to use its own funds for the purpose of paying the costs and expenses of the sole risk project; furthermore the operator shall not be obliged to commence or, having commenced, to continue the sole risk project unless and until relevant advances have been received from the sole risk parties.
8. 18.10 The sole risk parties shall indemnify and hold harmless the other parties against all actions, claims, demands and proceedings whatsoever brought by any third party arising out of or in connection with the sole risk project and shall further indemnify the other parties against all damages, costs, losses and expenses whatsoever directly or indirectly caused to or incurred by them as a result of anything done or omitted to be done in the course of carrying out such sole risk project.
9. Subject to the provision of Article 11 (10) below, the sole risk project, including data and information, is wholly in its entirety owned by the sole risk parties in accordance with the provisions participating Parties and is managed by a separate management committee, consisting of the Contract, but the sole risk parties shall keep the other parties informed about the projectparticipating Parties only. In the event that such project results in an increase of production of petroleum from the participation area, the portion of such increase, which is available to the Contractor, shall be owned solely by the sole risk parties. Each of them shall have the right and obligation to take in kind, and separately dispose of its proportional share of supplementary petroleum production.
10. Any party or parties which are not participating in the sole risk project may, by giving thirty (30) days' notice to the sole risk parties, become participants in such project, at any time after the sole risk parties have recovered from the supplementary petroleum production the following sums of money to which they are entitled on the project:Article
Appears in 1 contract
Sources: Joint Operating Agreement
SOLE RISK OPERATIONS. 1. Any party Party may undertake petroleum operations Petroleum Operations at sole risk (hereinafter referred to as "sole risk project") in a participation areaParticipation Area, subject to the provisions of this Article.
2clause. The following types of sole risk project may be proposed-
(a) proposed: the drilling of a well Well or the deepening, side-tracking, completing, plugging back, testing or reworking of an existing well Well drilled for the joint account Joint Account of the partiesParties, in order to test a formation in which no jointly-owned well Well has been completed as a well Well producing or capable of producing petroleum;
(b) The Petroleum; the installation of production Production and transportation facilities.
3. The conduct of a project in a development area Development Area may not be the subject of a sole risk notice under this Article clause until after it has been proposed in complete form to the operating committee Operating Committee for consideration pursuant to Article 4 clause 4. hereof and has not been approved within the period therein provided. In the event that such project fails to obtain the requisite approval of the operating committeeOperating Committee, then any party Party may serve notice on the other parties Parties of its intention to carry out that project at sole risk. The other parties Parties may give counter- counter-notice that they wish to participate in the project within sixty ([60) ] days after receipt thereof but, where a drilling rig is on the location and has not been released, the period is reduced to seventy-two ([72) ] hours after receipt thereof. The periods set forth in this Article 11 (3) sub-section shall be extended for any period of time mutually agreed by the parties Parties as necessary or desirable for acquiring or developing additional information on the sole risk project.
4. If all the other parties Parties elect to participate in the project identified in the proposing partyParty's notice within the period thereof provided, such project is considered as being approved by the operating committee Operating Committee and the provisions of Article 4 (8) clause 4.8 of this Participation Agreement shall apply. Draft Production Sharing Contract Block L28 Ministry of Energy Page 86
5. In the event that less than all the parties Parties elect to participate in the project, the parties Parties which elected to participate (hereafter referred to as "sole risk partiesParties") shall be entitled to have the sole risk project carried out. The interest of each sole risk party Party in a sole risk project shall be in proportion to its participation interest Participating Interest in this Participation Agreement, or in such other proportion as the sole risk parties Parties may agree. Any sole risk project shall be carried out at the sole risk, cost and expense of the sole risk parties Parties in the proportion of their respective interests.
6. A sole risk project shall be carried out by the operator Operator on behalf of the sole risk parties Parties under the provisions of this participation agreement. No sole risk project may be commenced after one hundred and eighty ([180) ] days following the expiration of the notice period prescribed in Article 11 (3)sub-clause 11.3, but the operator Operator shall commence work as promptly as reasonably possible if the notice period of seventy two ([72) ] hours, set forth in Article 11 (3)sub-clause 11.3, applies. The operator Operator shall complete the sole risk project with due diligence diligence, provided that it does not jeopardizejeopardise, hinder or unreasonably interfere with petroleum operations Petroleum Operations carried out under the Contract Agreement and adopted by the operating committee Operating Committee pursuant to Article 4 clause 4. of this Participation Agreement. The sole risk parties Parties may use for the sole risk project any productionProduction, handling, processing and/or transporting facilities, facilities which are joint propertyJoint Property, subject to a determination by the operating committee Operating Committee as to usage fees, availability of capacity and production Production compatibility.
7. In connection with any sole risk project-
(a) project: the sole risk project will be carried out under the overall supervision and control of the sole risk parties Parties in lieu of the operating committee;
(b) Operating Committee; the computation of costs and expenses of the sole risk project incurred by the sole risk parties Parties shall be made in accordance with the principles set out in exhibit “A" appendix 1 attached hereto;
(c) ; the operator Operator carrying out the sole risk project shall maintain separate books, records and accounts (including bank accounts) for the sole risk project which shall be subject to the same right of examination and audit by the sole risk parties;
(d) Parties; the costs and expenses of the sole risk project shall not be reflected in the statements and billing ▇▇▇▇▇▇▇▇ rendered by the operator Operator for petroleum operations Petroleum Operations under the this Participation Agreement; and Draft Production Sharing Contract Block L28 Ministry of Energy Page 87
(e) if the operator Operator is carrying out a sole risk project on behalf of the sole risk partiesParties, the operator Operator shall be entitled to request the sole risk parties Parties in connection with the sole risk project to advance their share of the estimated expenditure and shall not use joint account Joint Account funds or be required to use its own funds for the purpose of paying the costs and expenses of the sole risk project; furthermore the operator Operator shall not be obliged to commence or, having commenced, to continue the sole risk project unless and until relevant advances have been received from the sole risk parties.
8Parties. The sole risk parties Parties shall indemnify and hold harmless the other parties Parties harmless against all actions, claims, demands and proceedings whatsoever brought by any third party Party arising out of or in connection with the sole risk project and shall further indemnify the other parties Parties against all damages, costs, losses and expenses whatsoever (directly or indirectly indirectly) caused to or incurred by them as a result of anything done or omitted to be done by the sole risk Parties in the course of carrying out such sole risk project.
9. Subject to the provision provisions of Article 11 (10) sub-clause 11.10 below, the sole risk project, project (including data and information, ) is wholly owned by the sole risk parties Parties in accordance with the provisions of the ContractAgreement, but the sole risk parties Parties shall keep the other parties Parties informed about the project. In the event that such project results in an increase of production Production of petroleum Petroleum from the participation areaParticipation Area, the portion of such increase, increase which is available to the Contractor, Contractor under the Agreement shall be owned solely by the sole risk partiesParties. Each of them shall have the right and obligation to take in kind, and separately dispose of its proportional share of supplementary petroleum production.
10Petroleum Production. Any party Party or parties Parties which are not participating in the sole risk project may, by giving thirty ([30) ] days' notice to the sole risk partiesParties, become participants in such project, at any time after the sole risk parties Parties have recovered from the supplementary petroleum production Petroleum Production the following sums of money to which they are entitled on the project:: in the case of a project under clause 11.2.1 hereof, % of the sole risk cost of such project, plus [100]% of the cost of operating such Well incurred by the sole risk Parties: in the case of a project under clause 11.2.2 hereof, % of the sole risk cost of such project, plus [100]% of the cost of operating such facilities; the value of the supplementary Production to which a sole risk Party is entitled shall be the market value in sales at Arm's Length, determined in accordance with clause 10. of the Agreement; from and after the election of any Party or Parties to become participants in such project, all relevant ▇▇▇▇▇, facilities, equipment and other property appurtenant thereto shall be owned jointly by the participating Parties and each of the participating Parties shall be entitled to receive its proportional share of the supplementary Petroleum Production.
Appears in 1 contract
Sources: Model Production Sharing Agreement
SOLE RISK OPERATIONS. 1. Any party may undertake petroleum operations at sole risk (hereinafter referred to as "sole risk project") in a participation area, subject to the provisions of this Article.
2. The following types of sole risk project may be proposed-
(a) the drilling of a well or the deepening, side-tracking, completing, plugging back, testing or reworking of an existing well drilled for the joint account of the parties, in order to test a formation in which no jointly-owned well has been completed as a well producing or capable of producing petroleum;petroleum;
(b) The installation of production and transportation facilities.
3. The conduct of a project in a development area may not be the subject of a sole risk notice under this Article until after it has been proposed in complete form to the operating committee for consideration pursuant to Article 4 hereof and has not been approved within the period therein provided. In the event that such project fails to obtain the requisite approval of the operating committee, then any party may serve notice on the other parties of its intention to carry out that project at sole risk. The other parties may give counter- notice that they wish to participate in the project within sixty (60) days after receipt thereof but, where a drilling rig is on the location and has not been released, the period is reduced to seventy-two (72) hours after receipt thereof. The periods set forth in this Article 11 (3) shall be extended for any period of time mutually agreed by the parties as necessary or desirable for acquiring or developing additional information on the sole risk project.
4. If all the other parties elect to participate in the project identified in the proposing party's notice within the period thereof provided, such project is considered as being approved by the operating committee and the provisions of Article 4 (8) of this Participation Agreement shall apply. Draft Production Sharing Contract Block L28 11A Ministry of Energy Page 8687
5. In the event that less than all the parties elect to participate in the project, the parties which elected to participate (hereafter referred to as "sole risk parties") shall be entitled to have the sole risk project carried out. The interest of each sole risk party in a sole risk project shall be in proportion to its participation interest in this Participation Agreement, or in such other proportion as the sole risk parties may agree. Any sole risk project shall be carried out at the sole risk, cost and expense of the sole risk parties in the proportion of their respective interests.
6. A sole risk project shall be carried out by the operator on behalf of the sole risk parties under the provisions of this participation agreement. No sole risk project may be commenced after one hundred and eighty (180) days following the expiration of the notice period prescribed in Article 11 (3), but the operator shall commence work as promptly as reasonably possible if the notice period of seventy two (72) hours, set forth in Article 11 (3), applies. The operator shall complete the sole risk project with due diligence provided that it does not jeopardize, hinder or unreasonably interfere with petroleum operations carried out under the Contract and adopted by the operating committee pursuant to Article 4 of this Participation Agreement. The sole risk parties may use for the sole risk project any production, handling, processing and/or transporting facilities, which are joint property, subject to a determination by the operating committee as to usage fees, availability of capacity and production compatibility.
7. In connection with any sole risk project-
(a) the sole risk project will be carried out under the overall supervision and control of the sole risk parties in lieu of the operating committee;committee;
(b) the computation of costs and expenses of the sole risk project incurred by the sole risk parties shall be made in accordance with the principles set out in exhibit “A" attached hereto;hereto;
(c) the operator carrying out the sole risk project shall maintain separate books, records and accounts (including bank accounts) for the sole risk project which shall be subject to the same right of examination and audit by the sole risk parties;parties;
(d) the costs and expenses of the sole risk project shall not be reflected in the statements and billing rendered by the operator for petroleum operations under the Participation Agreement; Agreement; and Draft Production Sharing Contract Block L28 11A Ministry of Energy Page 8788
(e) if the operator is carrying out a sole risk project on behalf of the sole risk parties, the operator shall be entitled to request the sole risk parties in connection with the sole risk project to advance their share of the estimated expenditure and shall not use joint account funds or be required to use its own funds for the purpose of paying the costs and expenses of the sole risk project; project; furthermore the operator shall not be obliged to commence or, having commenced, to continue the sole risk project unless and until relevant advances have been received from the sole risk parties.
8. The sole risk parties shall indemnify and hold harmless the other parties against all actions, claims, demands and proceedings whatsoever brought by any third party arising out of or in connection with the sole risk project and shall further indemnify the other parties against all damages, costs, losses and expenses whatsoever directly or indirectly caused to or incurred by them as a result of anything done or omitted to be done in the course of carrying out such sole risk project.
9. Subject to the provision of Article 11 (10) below, the sole risk project, including data and information, is wholly owned by the sole risk parties in accordance with the provisions of the Contract, but the sole risk parties shall keep the other parties informed about the project. In the event that such project results in an increase of production of petroleum from the participation area, the portion of such increase, which is available to the Contractor, shall be owned solely by the sole risk parties. Each of them shall have the right and obligation to take in kind, and separately dispose of its proportional share of supplementary petroleum production.
10. Any party or parties which are not participating in the sole risk project may, by giving thirty (30) days' notice to the sole risk parties, become participants in such project, at any time after the sole risk parties have recovered from the supplementary petroleum production the following sums of money to which they are entitled on the project:: In the case of a project under Article 11 (2) (a) hereof six hundred per cent (600%) of the Sole Risk cost of such project, plus one hundred per cent (100%) of the cost of operating such well incurred by the Sole Risk Parties.
Appears in 1 contract
Sources: Participation Agreement