EXPLORATION WORK PROGRAMS AND BUDGETS Clause Samples

EXPLORATION WORK PROGRAMS AND BUDGETS. 11.1 Within forty-five (45) days following the Effective Date, the CONTRACTOR shall submit to the Management Committee a proposed work program and budget relating to Exploration Operations (the "“Exploration Work Program and Budget") for the remainder of the Calendar Year. Thereafter, no later than 1 October in each Calendar Year, the CONTRACTOR shall submit a proposed Exploration Work Program and Budget to the Management Committee for the following Calendar Year. 11.2 Each Exploration Work Program and Budget shall include details of, but not be limited to, the following: (a) work to be undertaken; (b) materials, goods and equipment to be acquired; (c) cost estimate of services to be provided, including services by third parties and/or Affiliated Companies of any CONTRACTOR entity; (d) estimated expenditures, broken down by cost centre in accordance with the Accounting Procedure. 11.3 The Management Committee shall meet within sixty (60) days following its receipt of CONTRACTOR's proposal to examine and, unless already deemed approved pursuant to the provisions of Article 11.4 below, approve the Exploration Work Program and Budget. 11.4 Any modification to the Exploration Work Program and Budget requested by the GOVERNMENT shall be submitted to the CONTRACTOR within thirty (30) days following receipt of the proposed Exploration Work Program and Budget by the Management Committee, accompanied by all the documents justifying such request. If the GOVERNMENT requests any modifications to the Exploration Work Program and Budget, the CONTRACTOR shall communicate its comments on any such requested modifications to the GOVERNMENT at the meeting of the Management Committee or in writing prior to such meeting. 11.5 The CONTRACTOR shall be authorised to make expenditures not budgeted in an approved Exploration Work Program and Budget provided that the aggregate amount of such expenditures shall not exceed ten percent (10%) of the approved Exploration Work Program and Budget in any Calendar Year and provided further that such excess expenditures shall be reported as soon as is reasonably practicable to the Management Committee. For the avoidance of doubt, such excess expenditures shall be considered Petroleum Costs and shall be recovered by the CONTRACTOR in accordance with the provisions of Articles 1 and 25.

EXPLORATION WORK PROGRAMS AND BUDGETS. Within sixty (60) days after the Effective Date, and thereafter at least forty five (45) days prior to the beginning of each Contract Year, the Contractor shall prepare detailed exploration work programs and Budgets setting forth the Exploration Operations which the Contractor proposes to conduct during such Contract Year in the Contract Area, and provide such work programs and Budgets for approval to the Government Representative. At least thirty (30) days prior to the beginning of such Contract Year, the Contractor and Government Representative shall meet to review and discuss such exploration work program and Budget. If the Contractor thereafter intends to revise such approved work program and Budget, the Contractor shall promptly provide copies of such revision to the Government Representative and within fifteen (15) working days following the receipt thereof the Contractor and the Government Representative shall again meet to review and discuss such changes.