Common use of UNIT DEVELOPMENT Clause in Contracts

UNIT DEVELOPMENT. (1) Where during the term of this Agreement, the Minister: (a) is satisfied that this Agreement and any other petroleum agreement are in force in respect of a common petroleum reservoir; and (b) considers that it is in the interest of Seychelles, in order to secure the maximum ultimate recovery of petroleum, that the common petroleum reservoir should be worked and developed as a unit on a co-operative basis, then the Minister may, by notice, require the Company to co-operate with such persons as are specified in the notice (being all or any of the persons whose petroleum agreements are in force in respect of the common petroleum reservoir and hereinafter called the "Other Operators") in the preparation of a development scheme (hereinafter called the “Development Scheme”) for the working and development of the common petroleum reservoir as a unit by the Company and the Other Operators on a co-operative basis. (2) A notice under subclause (1) shall contain or refer to a description of the area or areas in respect of which the Minister requires a Development Scheme to be submitted and shall state the period within which the Scheme is required to be submitted for approval by the Minister. (3) If a Development Scheme is not so submitted, or if the Development Scheme so submitted is not approved by the Minister, the Minister may cause a Development Scheme to be prepared and given to the Company (which Scheme shall be fair and equitable to the Company and the Other Operators) and the Company shall perform and observe the terms and conditions of the Development Scheme. (4) If the Company notifies the Minister that it objects to a Development Scheme which the Minister causes under subclause (3) to be prepared, a dispute shall be deemed to exist between the Government and the Company for the purpose of Clause 51. (5) Notwithstanding that a dispute so exists, the Company shall perform and observe the terms of the Development Scheme unless it is otherwise determined by arbitration or the Minister alters, withdraws or suspends the Development Scheme or part thereof pending arbitration or otherwise.

UNIT DEVELOPMENT. (1) Where during the term of this Agreement, the Minister: (a) Minister is satisfied that this Agreement and any other petroleum agreement are in force in respect of a common petroleum reservoir; and (b) Petroleum reservoir and considers that it is in the interest of Seychelles, in order to secure the maximum ultimate recovery of petroleum, that the common petroleum reservoir should be worked and developed as a unit on a co-operative basisbasis to secure the maximum ultimate recovery of Petroleum, then the Minister may, by notice, require the Company to co-operate with such persons as are specified in the notice (being all or any of the persons whose petroleum agreements are in force in respect of the common petroleum Petroleum reservoir and hereinafter called the "Other OperatorsCompanies") in the preparation of a development scheme plan (hereinafter called the “Joint Development SchemePlan”) for the working and development of the common petroleum Petroleum reservoir as a unit by the Company and the Other Operators other Companies on a co-operative basis. (2) A notice under subclause (1sub-clause 24(1) shall contain or refer to a description of the area or areas in respect of which the Minister requires a Joint Development Scheme Plan to be submitted along with a unit development and production agreement and shall state the period within which the Scheme Joint Development Plan is required to be submitted for approval by the MinisterMinister and the proposed contents of the Joint Development Plan. (3) If a Joint Development Scheme Plan is not so submitted, or if the Joint Development Scheme Plan so submitted is not approved by the Minister, the Minister may cause a Joint Development Scheme Plan to be prepared and given to the Company (which Scheme Plan shall be fair and equitable to the Company and the Other OperatorsCompanies) and the Company shall perform and strictly observe the terms and conditions of the Joint Development SchemePlan. (4) If the Company notifies the Minister that it reasonably objects to a Joint Development Scheme Plan (with substantial detail and documentation) which the Minister causes under subclause (3sub-clause 24(3) to be prepared, a dispute shall be deemed to exist between the Government and the Company for the purpose of Clause 5139. (5) Notwithstanding that a dispute so exists, the Company shall continue to perform and observe the terms of the Joint Development Scheme Plan unless it is otherwise determined by arbitration or the Minister alters, withdraws or suspends the Joint Development Scheme Plan or part thereof pending arbitration or otherwise.