Development and Production. 7.1 If the Contractor considers a discovery to be a Commercial Discovery, it shall, within six (6) months from the completion of the appraisal works mentioned in Article 6.4 above, notify to the Petroleum Operations Management Committee referred to in Article 9.2 below the development plan concerning such Commercial Discovery. 7.2 The development plan submitted by the Contractor shall, inter alia, contain: (i) the definition of the Exploitation Area related to the discovery as a contiguous block of 500 square kilometers in a shape defined by the Contractor from the exploration and well data; (j) an estimate of the recoverable reserves; (k) a production profile; (l) the works necessary for the exploitation of the field such as the number of ▇▇▇▇▇; (m) the facilities required for the production, treatment, storage and transportation of Petroleum; (n) an estimate of the duration of the above-mentioned works; (o) an estimate of the development investments and operating costs; (p) an economic study supporting the commercial nature of the discovery. The commercial nature of a discovery shall be determined by the Contractor. A discovery may be declared as commercial by the Contractor if, after taking into account the contractual provisions and the submitted development plan, the forecasts of incomes and expenses prepared in accordance with the standards used in the international petroleum industry confirm its commerciality. 7.3 Within sixty (60) days from the notification of the development plan to the Petroleum Operations Management Committee; the latter may notify to the Contractor revisions or changes to that development plan. The Contractor will endeavor to include said revisions or changes in accordance with good international petroleum industry practice. No later than thirty (30) days after the expiry of the time period referred to above, the Contractor shall submit the development plan to the Minister, for its adoption within thirty (30) days. The date of adoption of the development plan shall be the date of its notice given by the Minister. If the Minister fails to give such notice within the thirty (30) day period, the development plan submitted by the Contractor shall be deemed adopted at the date of expiry of said period. 7.4 The Contractor shall commence the physical development works on the field within six (6) months after the date of adoption of the development plan and shall continue them with due diligence. 7.5 No later than three (3) months prior to the end of each Calendar Year, the Contractor shall notify to the Petroleum Operations Management Committee the annual development program, and, as the case may be, the annual production program relating to each Exploitation Area, for the following Calendar Year. The provision of Article 9.5 below shall apply mutatis mutandis to the annual development and production programs as regards their adoption. 7.6 During the Exploitation Period of a field, the Contractor shall produce annually reasonable quantities of Petroleum from said field in accordance with good international petroleum industry practice and taking into consideration, inter alia, the rules for the proper conservation of fields and the optimal recovery of Petroleum reserves under economic conditions. 7.7 The suspension of all production during a continuous period of at least twenty four (24) months, decided by the Contractor without the agreement of the Government, may result in the termination of this Contract pursuant to the provisions of Article 24.5 below. 7.8 Where a field extends beyond the boundaries of the Contract Area, the Minister may, as the case may be, require the Contractor to exploit said field in association with the contractor of the adjacent contract area under the provisions of a unitization agreement. Within six (6) months after the Minister has notified the Contractor, the later shall notify the Minister of the development plan relating to the Commercial Discovery which shall be prepared in agreement with the contractor of the adjacent contract area. If the development plan is not submitted to the Minister within the above-mentioned time period, or if such plan is not adopted by the Minister, the Minister will prepare a development plan in accordance with good international petroleum industry practice. Said plan shall be adopted by the Contractor, provided that the conditions imposed by the Minister do not reduce the economic profitability of the Contractor as arising from this Contract, and do not require more capital than normally the Contractor would contribute in the conduct of the Petroleum Operations. 7.9 The Contractor shall measure all Petroleum produced, after extraction of associated water and foreign substances, by using the measurement appliances and methods customarily used in the international petroleum industry. Pursuant to the provisions of Article 18 below, the Minister shall have the right to examine such measurements and cause to inspect the appliances and methods used. If during the Exploitation Period the Contractor wishes to modify said appliances and methods, it shall notify the Minister. Where the appliances and methods used therefore have caused an overstatement or understatement of measured quantities, the error shall be deemed to have existed since the date of the last calibration of the measurement device, unless the contrary may be justified, and an appropriate adjustment shall be made for the period said error has existed.
Appears in 1 contract
Sources: Hydrocarbon Production Sharing Contract (Hyperdynamics Corp)
Development and Production. 7.1 If The Development Plan shall be prepared on the Contractor considers a discovery to be a Commercial Discoverybasis of sound engineering, it shall, within six (6) months from the completion of the appraisal works mentioned environmental and economic principles in Article 6.4 above, notify to the Petroleum Operations Management Committee referred to in Article 9.2 below the development plan concerning such Commercial Discoveryaccordance with generally accepted international petroleum industry practice.
7.2 The development plan submitted by the Contractor shall, inter alia, containDevelopment Plan shall contain but not limited to:
(i) 7.2.1 details and the definition area extent of the Exploitation Area related proposed Development and Production Area;
7.2.2 proposals relating to the discovery as a contiguous block of 500 square kilometers in a shape defined by the Contractor from the exploration spacing, drilling and well data;
(j) an estimate of the recoverable reserves;
(k) a production profile;
(l) the works necessary for the exploitation of the field such as the number completion of ▇▇▇▇▇;
(m) , the production and storage installations, and transportation and delivery facilities required for the production, treatment, storage and transportation of Petroleum;
(n) 7.2.3 proposals relating to necessary infrastructure investments;
7.2.4 a production forecast and an estimate of the duration of the above-mentioned worksinvestment and expenses involved;
(o) 7.2.5 an estimate of the development investments and operating coststime required to complete each phase of the Development Plan;
7.2.6 the proposed Delivery Point and Measurement Point. Albpetrol may require Contractor to provide such further information as is readily available and as AKBN may reasonably need to evaluate the Development Plan for any Development and Production Area. Such request for information has to be made within twenty (p20) an economic study supporting the commercial nature days after receipt of the discovery. The commercial nature of a discovery Development Plan and Contractor shall be determined by the Contractor. A discovery may be declared as commercial by the Contractor if, after taking into account the contractual provisions and the submitted development plan, the forecasts of incomes and expenses prepared in accordance with the standards used in the international petroleum industry confirm its commercialityuse reasonable efforts to respond within twenty (20) days.
7.3 Within sixty (60) days from the notification of the development plan If AKBN does not request in writing any changes to the Petroleum Operations Management Committee; the latter may notify to the Contractor revisions or changes to that development plan. The Contractor will endeavor to include said revisions or changes in accordance with good international petroleum industry practice. No later than thirty Development Plan within forty-five (3045) days after the expiry submission of the time period referred to aboveDevelopment Plan or revised Development Plan as approved by the Parties, the Contractor Plan or amended Plan shall submit the development plan be deemed approved by AKBN.
7.4 If AKBN requests any changes to the MinisterDevelopment Plan, for its adoption then the Parties and AKBN shall meet within fifteen (15) days of receipt by Contractor of AKBN's written notification as to these requested changes to try in good faith to reach an agreement on the Development Plan. Revision to the Development Plan, if agreed within a further period of thirty (30) days. The date of adoption of , should be incorporated in the development plan Development Plan which shall then be the date of its notice given deemed approved by the MinisterAKBN. If no agreement is reached, either Party may submit the Minister fails dispute for expert determination in accordance with the License Agreement. If Contractor desires to give such notice within materially amend the thirty (30) day periodDevelopment Plan as approved by AKBN, it will provide AKBN with the development plan submitted by proposed amendments pursuant to the Contractor shall be deemed adopted at the date of expiry of said period.
7.4 The Contractor shall commence the physical development works on the field within six (6) months after the date of adoption of the development plan and shall continue them with due diligenceprocedures set forth in this Article 7.4.
7.5 No later than three After the Development Plan has been approved, Contractor shall submit to Advisory Committee at least ninety (390) months prior to days before the end of each Calendar Year, Fiscal Year a detailed statement of the Contractor shall notify to the Petroleum Operations Management Committee the annual development program, and, as the case may be, the annual production program relating to each Exploitation Area, Annual Program and Budget for the following Calendar Year. The provision of Article 9.5 below shall apply mutatis mutandis subsequent Fiscal Year in relation to the annual development and production programs as regards their adoption.
7.6 During the Exploitation Period of a field, the Contractor shall produce annually reasonable quantities of Petroleum from said field in accordance with good international petroleum industry practice and taking into consideration, inter alia, the rules for the proper conservation of fields and the optimal recovery of Petroleum reserves under economic conditions.
7.7 The suspension of all production during a continuous period of at least twenty four (24) months, decided by the Contractor without the agreement of the Government, may result in the termination of this Contract pursuant to the provisions of Article 24.5 below.
7.8 Where a field extends beyond the boundaries of the Contract Area, the Minister may, as the case may be, require the Contractor to exploit said field in association with the contractor of the adjacent contract area under the provisions of a unitization agreement. Within six (6) months after the Minister has notified the Contractor, the later shall notify the Minister of the development plan relating to the Commercial Discovery which shall be prepared in agreement with the contractor of the adjacent contract area. If the development plan is not submitted to the Minister within the above-mentioned time period, or if such plan is not adopted by the Minister, the Minister will prepare a development plan in accordance with good international petroleum industry practice. Said plan shall be adopted by the Contractor, provided that the conditions imposed by the Minister do not reduce the economic profitability of the Contractor as arising from this Contract, and do not require more capital than normally the Contractor would contribute in the conduct of the Petroleum Operations.
7.9 The Contractor shall measure all Petroleum produced, after extraction of associated water and foreign substances, by using the measurement appliances and methods customarily used in the international petroleum industry. Pursuant to the provisions of Article 18 below, the Minister shall have the right to examine such measurements and cause to inspect the appliances and methods used. If during the Exploitation Period the Contractor wishes to modify said appliances and methods, it shall notify the Minister. Where the appliances and methods used therefore have caused an overstatement or understatement of measured quantities, the error shall be deemed to have existed since the date of the last calibration of the measurement device, unless the contrary may be justified, and an appropriate adjustment shall be made for the period said error has existed.the
Appears in 1 contract
Sources: Petroleum Agreement
Development and Production. 7.1 If The Development Plan shall be prepared on the Contractor considers a discovery to be a Commercial Discoverybasis of sound engineering, it shall, within six (6) months from the completion of the appraisal works mentioned environmental and economic principles in Article 6.4 above, notify to the Petroleum Operations Management Committee referred to in Article 9.2 below the development plan concerning such Commercial Discoveryaccordance with generally accepted international petroleum industry practice.
7.2 The development plan submitted by the Contractor shall, inter alia, containDevelopment Plan shall contain but not limited to:
(i) 7.2.1 details and the definition area extent of the Exploitation Area related proposed Development and Production Area;
7.2.2 proposals relating to the discovery as a contiguous block of 500 square kilometers in a shape defined by the Contractor from the exploration spacing, drilling and well data;
(j) an estimate of the recoverable reserves;
(k) a production profile;
(l) the works necessary for the exploitation of the field such as the number completion of ▇▇▇▇▇;
(m) , the production and storage installations, and transportation and delivery facilities required for the production, treatment, storage and transportation of Petroleum;
(n) 7.2.3 proposals relating to necessary infrastructure investments;
7.2.4 a production forecast and an estimate of the duration of the above-mentioned worksinvestment and expenses involved;
(o) 7.2.5 an estimate of the development investments and operating coststime required to complete each phase of the Development Plan;
7.2.6 the proposed Delivery Point and Measurement Point. Albpetrol may require Contractor to provide such further information as is readily available and as AKBN may reasonably need to evaluate the Development Plan for any Development and Production Area. Such request for information has to be made within twenty (p20) an economic study supporting the commercial nature days after receipt of the discovery. The commercial nature Development Plan and Contractor shall use reasonable efforts to respond within twenty (20) days.
7.3 If AKBN does not request in writing any changes to the Development Plan within forty-five (45) days after submission of a discovery the Development Plan or revised Development Plan as approved by the Parties, the Plan or amended Plan shall be determined deemed approved by AKBN.
7.4 If AKBN requests any changes to the ContractorDevelopment Plan, then the Parties and AKBN shall meet within fifteen (15) days of receipt by Contractor of AKBN's written notification as to these requested changes to try in good faith to reach an agreement on the Development Plan. A discovery Revision to the Development Plan, if agreed within a further period of thirty (30) days, should be incorporated in the Development Plan which shall then be deemed approved by AKBN. If no agreement is reached, either Party may be declared as commercial by submit the Contractor if, after taking into account the contractual provisions and the submitted development plan, the forecasts of incomes and expenses prepared dispute for expert determination in accordance with the standards used License Agreement. If Contractor desires to materially amend the Development Plan as approved by AKBN, it will provide AKBN with the proposed amendments pursuant to the procedures set forth in the international petroleum industry confirm its commercialitythis Article 7.4.
7.3 Within 7.5 After the Development Plan has been approved, Contractor shall submit to Advisory Committee at least ninety (90) days before the end of each Fiscal Year a detailed statement of the Annual Program and Budget for the subsequent Fiscal Year in relation to the Development and Production Area. For the first full Fiscal Year and the portion of the Fiscal Year preceding the first full Fiscal Year, a detailed statement of the Annual Program and Budget therefore shall be submitted to AKBN within sixty (60) days from the notification of the development plan to the Petroleum Operations Management Committee; the latter may notify to the Contractor revisions or changes to that development plan. The Contractor will endeavor to include said revisions or changes in accordance with good international petroleum industry practice. No later than thirty (30) days after the expiry of the time period referred to above, the Contractor shall submit the development plan to the Minister, for its adoption within thirty (30) days. The date of adoption of the development plan shall be the date of its notice given by the Minister. If the Minister fails to give such notice within the thirty (30) day period, the development plan submitted by the Contractor shall be deemed adopted at the date of expiry of said period.
7.4 The Contractor shall commence the physical development works on the field within six (6) months after the date of adoption approval of the development plan Development Plan under Articles 7.3 or 7.4. Each such annual detailed statement of the Annual Program and Budget therefore shall continue them be consistent with due diligence.
7.5 No later than three (3) months prior the Development Plan approved under Article 7.3 or as revised pursuant to the end of each Calendar Year, the Contractor shall notify to the Petroleum Operations Management Committee the annual development program, and, as the case may be, the annual production program relating to each Exploitation Area, for the following Calendar Year. The provision of Article 9.5 below shall apply mutatis mutandis to the annual development Articles 7.4 and production programs as regards their adoption7.6.
7.6 During the Exploitation Period of a field, the Contractor The Parties may at any time submit to AKBN for approval revisions to any Development Plan or Annual Program and Budget. These revisions shall produce annually reasonable quantities of Petroleum from said field in accordance be consistent with good international petroleum industry practice and taking into consideration, inter alia, the rules for the proper conservation of fields and the optimal recovery of Petroleum reserves under economic conditions.
7.7 The suspension of all production during a continuous period of at least twenty four (24) months, decided by the Contractor without the agreement of the Government, may result in the termination of this Contract pursuant to the provisions of Article 24.5 below7.1 and shall in the case of revisions to the Development Plan be subject to the approval procedure set forth in Articles 7.3 and 7.4, and in the case of the Annual Program and Budget to the review set forth in Article 5.1.5.3.
7.8 7.7 Where Albpetrol and Contractor agree that a field extends beyond the boundaries of the Contract Areamutual economic benefit can be achieved by constructing and operating common facilities (including, the Minister maybut not limited to, as the case may beroads, require the pipelines and other transportation, communication and storage facilities), Albpetrol and Contractor shall use reasonable efforts to exploit said field in association with the contractor of the adjacent contract area under the provisions of a unitization agreement. Within six (6) months after the Minister has notified the Contractor, the later shall notify the Minister of the development plan relating to the Commercial Discovery which shall be prepared in reach agreement with each other and if necessary with other producers on the contractor construction and operation of the adjacent contract area. If the development plan is not submitted such common facilities, investment recovery and charges to the Minister within the above-mentioned time period, or if such plan is not adopted by the Minister, the Minister will prepare a development plan in accordance with good international petroleum industry practice. Said plan shall be adopted by the Contractor, provided that the conditions imposed by the Minister do not reduce the economic profitability of the Contractor as arising from this Contract, and do not require more capital than normally the Contractor would contribute in the conduct of the Petroleum Operationspaid.
7.9 The Contractor shall measure all Petroleum produced, after extraction of associated water and foreign substances, by using the measurement appliances and methods customarily used in the international petroleum industry. Pursuant to the provisions of Article 18 below, the Minister shall have the right to examine such measurements and cause to inspect the appliances and methods used. If during the Exploitation Period the Contractor wishes to modify said appliances and methods, it shall notify the Minister. Where the appliances and methods used therefore have caused an overstatement or understatement of measured quantities, the error shall be deemed to have existed since the date of the last calibration of the measurement device, unless the contrary may be justified, and an appropriate adjustment shall be made for the period said error has existed.
Appears in 1 contract
Sources: Petroleum Agreement