Common use of Decommissioning of Facilities Clause in Contracts

Decommissioning of Facilities. The environmental abandonment and rehabilitation, including, but not limited to, plugging, cementing, and other operations necessary for safely plugging the xxxxx, as well as disconnection and removal of lines and removal of stationary and floating Production units, are included in the decommissioning of facilities referred to in item “d” of paragraph 3.1 of this annex. Rentals, Charters, and Leases Expenditures for rentals, charters, and leases, exclusively during the period in which the property or right is effectively used in the Operations, are recoverable as Cost Oil. Payments to Affiliates The expenditures incurred by the Contracted Party in transactions with affiliates, pursuant to the approval and supporting procedures set forth in paragraphs 3.24 to 3.33 of Annex XI, shall be recognized as Cost Oil. Expenditures not included in Cost Oil Expenditures disbursed for the following shall not be recognized as Cost Oil: Royalties; Signature Bonus; commercial Royalties paid to Affiliates; additional information obtained pursuant to paragraph 2.4.3 of Annex XI; financial charges and amortization of loans and financings; research, development, and innovation contracted under Section Seven of this Agreement; fixed assets not directly related to the activities established in paragraph 3.1 of this annex; judicial and extrajudicial costs, reconciliations, arbitrations, expert examinations, attorney’s fees, loss of suit expenses, and indemnifications resulting from court decision or arbitration award, even if merely by judicial settlement approval, as well as extrajudicial settlement, when resulting from litigations involving the Contracting Party, ANP or the Manager, in different capacities; fines, sanctions, and penalties of any kind; replacement of properties, equipment, and supplies lost, damaged, or destroyed due to act of God, force majeure, or similar causes, as well as willful misconduct, malpractice, negligence, or imprudence by the Operator, its agents, contracted parties, Affiliates, or associates and related services; downtime resulting from item “j”; income taxes, as well as taxes encumbering acquisitions and generating credits that may be used by the Contracted Party; commercialization or Transportation of Oil and Gas, except for those related to Production outflow; items covered by the percentage defined in paragraph 3.2.1 of this annex; tax credits arising from the non-cumulative nature aiming at the recovery of the tax burden levied on the previous phase that may be used by the Contractor, except for credits required to be cancelled or reversed. performance guarantees, financial guarantees for compliance with the Minimum Exploration Program and as consideration for the extension of the Exploration Phase, and decommissioning and abandonment guarantees, except for the financial support fund; and reward paid by the Contracted Parties not adhering, at first, to the Operations with Exclusive Risk.

Decommissioning of Facilities. The environmental abandonment and rehabilitation, including, but not limited to, plugging, cementing, and other operations necessary for safely plugging the xxxxx, as well as disconnection decommissioning and removal of lines and removal of stationary and floating Production units, are included in the decommissioning of facilities referred to in item “d” of paragraph 3.1 of this annex3.1. Rentals, Charters, and Leases Expenditures for rentals, charters, and leases, exclusively during the period in which the property or right is effectively used in the Operations, are recoverable as Cost Oil. Payments to Affiliates The In the event the expenditures incurred by the Contracted Party Contractor in transactions with affiliatesAffiliated legal entities exceed the national and international market prices for the same services and properties, under free competition conditions, one of the effective methods provided for in the Applicable Laws and Regulations, especially those described in article 18 of Law No. 9,430/1996, shall apply to calculate the amount acceptable for recognition as Cost Oil. In case the amounts ascertained according to the applicable methods exceed the amounts effectively disbursed, the recognition as Cost Oil shall be limited to the disbursed amount. In the event more than one method is used for price determination, the lowest amount ascertained shall be considered for purposes of recognition as Cost Oil, pursuant to the approval and supporting procedures set forth provisions in paragraphs 3.24 to 3.33 of Annex XI, shall be recognized as Cost Oilthe preceding paragraph. Expenditures not included in Cost Oil Expenditures disbursed for the following shall not be recognized as Cost Oil: Royalties; Signature Bonus; commercial Royalties paid to Affiliates; additional information obtained pursuant to paragraph 2.4.3 of Annex XI; financial charges and amortization of loans and financings; research, development, and innovation contracted under Section Seven of this the Agreement; fixed assets not directly related to the activities established in paragraph 3.1 of this annex3.1; judicial Judicial and extrajudicial costs, reconciliations, arbitrations, expert examinations, attorney’s fees, loss of suit expenses, and indemnifications resulting from court decision or arbitration award, even if merely by judicial settlement approval, as well as extrajudicial settlement, when resulting from litigations involving the Contracting Party, ANP or the Manager, in different capacities; fines, sanctions, and penalties of any kind; replacement of properties, equipment, and supplies lost, damaged, or destroyed due to act of God, force majeure, or similar causes, as well as willful misconduct, malpractice, negligence, or imprudence by the Operator, its agents, contracted partiescontractors, Affiliates, or associates and related services; downtime resulting from item “j”; , income taxes, as well as taxes encumbering levied on acquisitions and generating credits that may be used by the Contracted PartyContractor; commercialization or Transportation of Oil and Gas, except for those related to Production outflow; items covered by the percentage defined in paragraph 3.2.1 of this annex; Annex. tax credits arising from the non-cumulative nature aiming at the recovery of the tax burden levied on the previous phase that may be used by the Contractor, except for credits required to be cancelled or reversed. performance guarantees, financial guarantees for compliance with the Minimum Exploration Program and as consideration for the extension of the Exploration Phase, and decommissioning and abandonment guarantees, except for the financial support fund; and reward award paid by the Contracted Parties Contractors not adhering, at first, to the Operations with Exclusive Risk.

Decommissioning of Facilities. The environmental abandonment and rehabilitation, including, but not limited to, plugging, cementing, and other operations necessary for safely plugging the xxxxx, as well as disconnection and removal of lines and removal of stationary and floating Production units, are included in the decommissioning of facilities referred to in item “d” of paragraph 3.1 of this annex3.1. Rentals, Charters, and Leases Expenditures for rentals, charters, and leases, exclusively during the period in which the property or right is effectively used in the Operations, are recoverable as Cost Oil. Payments to Affiliates The expenditures incurred by the Contracted Party in transactions with affiliatesAffiliates, pursuant to the approval and supporting procedures set forth in paragraphs 3.24 3.19 to 3.33 3.29 of Annex XIXxxxx XXXX, shall be recognized as Cost Oil. Expenditures not included in Cost Oil Expenditures disbursed for the following shall not be recognized as Cost Oil: Royalties; Signature Bonus; commercial Royalties paid to Affiliates; additional information obtained pursuant to paragraph 2.4.3 2.5 of Annex XIXxxxx XXXX; financial charges and amortization of loans and financings; research, development, and innovation contracted under Section Seven of this Agreement; fixed assets not directly related to the activities established in paragraph 3.1 of this annex3.1; judicial and extrajudicial costs, reconciliations, arbitrations, expert examinations, attorney’s fees, loss of suit expenses, and indemnifications resulting from court decision or arbitration award, even if merely by judicial settlement approval, as well as extrajudicial settlement, when resulting from litigations involving the Contracting Party, ANP or the Manager, in different capacities; fines, sanctions, and penalties of any kind; replacement of properties, equipment, and supplies lost, damaged, or destroyed due to act of God, force majeure, or similar causes, as well as willful misconduct, malpractice, negligence, or imprudence by the Operator, its agents, contracted parties, AffiliatesAffiliates or associates, or associates and related services; downtime resulting from item “j”; income taxes, as well as taxes encumbering acquisitions and generating credits that may be used by the Contracted Party; commercialization or Transportation of Oil and Gas, except for those related to Production outflow; items covered by the percentage defined in paragraph 3.2.1 of this annex3.2.1; tax credits arising from the non-cumulative nature aiming at the recovery of the tax burden levied on the previous phase that may be used by the Contractor, except for credits required to be cancelled or reversed. performance guarantees, financial guarantees for compliance with the Minimum Exploration Program and as consideration for the extension of the Exploration Phase, and decommissioning and abandonment guarantees, ; except for the financial support fund; and reward paid by the Contracted Parties not adhering, at first, to the Operations with Exclusive Risk.

Decommissioning of Facilities. The environmental abandonment and rehabilitation, including, but not limited to, plugging, cementing, and other operations necessary for safely plugging the xxxxx, as well as disconnection and removal of lines and removal of stationary and floating Production units, are included in the decommissioning of facilities referred to in item “d” of paragraph 3.1 of this annex. Rentals, Charters, and Leases Expenditures for rentals, charters, and leases, exclusively during the period in which the property or right is effectively used in the Operations, are recoverable as Cost Oil. Payments to Affiliates The expenditures incurred by the Contracted Party in transactions with affiliates, pursuant to the approval and supporting procedures set forth in paragraphs 3.24 to 3.33 of Annex XI, shall be recognized as Cost Oil. Expenditures not included in Cost Oil Expenditures disbursed for the following shall not be recognized as Cost Oil: Royalties; Signature Bonus; commercial Royalties paid to Affiliates; additional information obtained pursuant to paragraph 2.4.3 of Annex XIXxxxx XX; financial charges and amortization of loans and financings; research, development, and innovation contracted under Section Seven of this Agreement; fixed assets not directly related to the activities established in paragraph 3.1 of this annex; judicial and extrajudicial costs, reconciliations, arbitrations, expert examinations, attorney’s fees, loss of suit expenses, and indemnifications resulting from court decision or arbitration award, even if merely by judicial settlement approval, as well as extrajudicial settlement, when resulting from litigations involving the Contracting Party, ANP or the Manager, in different capacities; fines, sanctions, and penalties of any kind; replacement of properties, equipment, and supplies lost, damaged, or destroyed due to act of God, force majeure, or similar causes, as well as willful misconduct, malpractice, negligence, or imprudence by the Operator, its agents, contracted parties, Affiliates, or associates and related services; downtime resulting from item “j”; income taxes, as well as taxes encumbering acquisitions and generating credits that may be used by the Contracted Party; commercialization or Transportation of Oil and Gas, except for those related to Production outflow; items covered by the percentage defined in paragraph 3.2.1 of this annex; tax credits arising from the non-cumulative nature aiming at the recovery of the tax burden levied on the previous phase that may be used by the Contractor, except for credits required to be cancelled or reversed. performance guarantees, financial guarantees for compliance with the Minimum Exploration Program and as consideration for the extension of the Exploration Phase, and decommissioning and abandonment guarantees, except for the financial support fund; and reward paid by the Contracted Parties not adhering, at first, to the Operations with Exclusive Risk.