Joint Operations Agreement Clause Samples

Joint Operations Agreement. (a) Development Operations in respect of which TPDC has elected to participate in a Development Programme and contribute its Specified Proportion as provided in Section 8.1 (“Joint Operations”), shall be conducted hereunder in accordance with the terms and conditions of a Joint Operations Agreement to be entered into between TPDC and PanAfrican Tanzania immediately following the notice of election to participate in a Development Programme given by TPDC to PanAfrican Tanzania. (b) The Joint Operations Agreement shall cover the Contract Area or the portion or portions thereof to which the Joint Operations relate (each a “Joint Development Area”) and shall include provisions to give effect to the following principles: (i) A Joint Operations Committee shall be established on which each of TPDC and PanAfrican Tanzania shall be represented. The representatives shall have voting rights on the Joint Operations Committee corresponding to the proportions in which they are obligated to contribute to the expenses of the Joint Operations in the Joint Development Area(s); (ii) PanAfrican Tanzania shall be the sole Operator of the Joint Operations in the Joint Development Area under properly defined rights and obligations and shall carry out all operations pursuant to Work Programmes and budgets approved by the Joint Operations Committee; (iii) From and after the date upon which TPDC gives its notice of election to participate in a Development Programme as provided in Section 8.1(b), TPDC shall be liable to contribute on an ongoing basis its Specified Proportion of all expenses of Joint Operations in the Joint Development Area in respect of which TPDC has elected to participate. The balance of such expenses shall be contributed by PanAfrican Tanzania. If requested by TPDC, PanAfrican Tanzania shall request that contractor invoices for operations related to a Joint Operation be divided to reflect the amounts due from PanAfrican Tanzania and TPDC in the Specified Proportion. The contributions shall be in such currencies as may be required from time to time by the Operator for the Joint Operations and approved by the Joint Operations Committee; and (iv) Failure by PanAfrican Tanzania or TPDC to meet calls for funds within the time limits agreed in the Joint Operations Agreement shall result in, among other things, liability for interest compounded monthly on the unpaid amounts for the period that such amounts remain unpaid at the rate specified in Section 1.5(c) of Annex D,...