Common use of MINIMUM WORK PROGRAMME Clause in Contracts

MINIMUM WORK PROGRAMME. During the Exploration Phase, the CONTRACTOR undertakes the performance of the following minimum Work Programme, it being understood that the work obligations take precedence over expenditure of the estimated amounts: 6.1 During the initial period of the Exploration Phase of years: Seismic: ------------------------------- Drilling: ------------------------------- The minimum financial commitment corresponding to the total cost of the above- mentioned work is estimated at USD 6.2 During the first renewal period of the Exploration Phase of two (2) years: Seismic: ------------------------------- Drilling: ------------------------------- The minimum financial commitment corresponding to the total cost of the above- mentioned work is estimated at USD 6.3 During the second renewal period of the Exploration Phase of two (2) years: Seismic: ----------------------------------- Drilling: ----------------------------------- The minimum financial commitment corresponding to the total cost of the above- mentioned work is estimated at USD 6.4 At the beginning of the initial period of the Exploration Phase and thereafter at the beginning of each additional period, the CONTRACTOR shall furnish to the Operating Committee, a bank guarantee consistent with that in Annex D of this Contract, for an initial amount equal to the estimated cost of the minimum Work Programme to be completed during such period in accordance with Articles 6.1, 6.2 and 6.3 of this Contract. The STATE may call such guarantee in the event of non-performance of the minimum Work Programme which it covers, and such guarantee shall be reduced or terminated, all in accordance with the terms specified in said guarantee. 6.5 The CONTRACTOR may interrupt a Drilling which has not reached the depth and/or deepest geologic objective envisioned by the corresponding minimum Work Programme if the CONTRACTOR has encountered petroleum bearing strata, which, according to the CONTRACTOR, constitute a Discovery. In such case, the well drilled shall nonetheless be considered an Exploration well within the framework of the corresponding minimum Work Programme. 6.6 The CONTRACTOR may suspend a Drilling that has not reached the depth and/or the deepest geologic objective envisioned by the corresponding Work Programme if it has encountered technical Drilling difficulties which in the CONTRACTOR’s opinion, and based on generally accepted practices in the international petroleum industry, justify the suspension. In such case, the Operating Committee shall either deem the CONTRACTOR to have fulfilled the work obligations concerning the well in question, or it shall define an adequate and reasonable substitute work obligation. Any dispute arising from this article which cannot be resolved between the Parties, shall be resolved by expert as provided in Article 27.2. 6.7 All work carried out by the CONTRACTOR beyond the minimum Work Programme provided for in any period of the Exploration Phase, shall be credited to the minimum Work Programme for the following period of the Exploration Phase. 6.8 If the minimum Work Programme for any period of the ongoing Exploration Phase has been performed during the preceding period of the Exploration Phase, the CONTRACTOR shall nevertheless undertake to carry out in the Exploration Area, during such ongoing period, work that may consist of geophysical, geological, drilling or evaluation work as determined by the CONTRACTOR with the objective to further mature the prospectivity of the Exploration Area. 6.9 The estimated expenditure amounts set forth in Articles 6.1, 6.2 and 6.3 above are expressed in constant U.S. Dollars for the month of the Effective Date, and shall be revised at the end of each Calendar Year, starting from the Effective Date, in order to reflect the actual value of the estimated expenditure amounts for purposes of Article 6.9.1 hereafter, in accordance with the method set forth in Article 6.9.2 below: 6.9.1 At the end of each Calendar Year, starting from the Effective Date, the Exploration Costs actually incurred by the CONTRACTOR during such Calendar Year, shall be deducted from the total amount of the CONTRACTOR's estimated expenditure amounts for purposes of Article 6.9.2 hereafter for the current period of the Exploration Phase. 6.9.2 The amount remaining after the deduction referred to in Article 6.9.1 above, shall be revised each Calendar Year by multiplying it by the factor: In / In1 Where:

MINIMUM WORK PROGRAMME. During the Exploration Phase, the CONTRACTOR undertakes the performance of the following minimum Work Programme, it being understood that the work obligations take precedence over expenditure of the estimated amounts: 6.1 During the initial period of the Exploration Phase of years: Seismic: ------------------------------- Drilling: ------------------------------- The minimum financial commitment corresponding to the total Total cost of the above- above mentioned work is estimated at USD 6.2 During the first renewal period of the Exploration Phase of two (2) years: Seismic: ------------------------------- Drilling: ------------------------------- The minimum financial commitment corresponding to the total Total cost of the above- above mentioned work is estimated at USD 6.3 During the second renewal period of the Exploration Phase of two (2) years: Seismic: ----------------------------------- Drilling: ----------------------------------- The minimum financial commitment corresponding to the total Total cost of the above- above mentioned work is estimated at USD 6.4 At the beginning of the initial period of the Exploration Phase and thereafter at the beginning of each additional period, the CONTRACTOR shall furnish to the Operating Committee, Committee a bank guarantee consistent with that in Annex D of this Contract, for an initial amount equal to the estimated cost of the minimum Work Programme to be completed during such period in accordance with Articles 6.1, 6.2 and 6.3 of this Contract. The STATE may call such guarantee in the event of non-performance of the minimum Work Programme which it covers, and such guarantee guaranty shall be reduced or terminated, all in accordance with the terms specified in said guarantee. 6.5 The CONTRACTOR may interrupt a Drilling which has not reached the depth and/or deepest geologic objective envisioned by the corresponding minimum Work Programme if the CONTRACTOR has encountered petroleum bearing strata, which, according to the CONTRACTOR, constitute a Discovery. In such case, the well drilled shall nonetheless be considered an Exploration well within the framework of the corresponding minimum Work Programme. 6.6 The CONTRACTOR may suspend a Drilling that has not reached the depth and/or or the deepest geologic objective envisioned by the corresponding Work Programme if it has encountered technical Drilling difficulties which in the CONTRACTOR’s opinion, and based on generally accepted practices in the international petroleum industry, justify the suspension. In such case, the Operating Committee shall either deem the CONTRACTOR to have fulfilled the work obligations concerning the well in question, or it shall define an adequate and reasonable substitute work obligation. Any dispute arising from this article which cannot be resolved between the Parties, Parties shall be resolved by expert as provided in Article 27.2. 6.7 All work carried out by the CONTRACTOR beyond the minimum Work Programme provided for in any period of the Exploration Phase, Phase shall be credited to the minimum Work Programme for the following period of the Exploration Phase. 6.8 If the minimum Work Programme for any period of the ongoing Exploration Phase has been performed during the preceding period of the Exploration Phase, the CONTRACTOR shall nevertheless undertake to carry out in the Exploration Area, during such ongoing period, work that may consist of geophysical, geological, drilling or evaluation work as determined by the CONTRACTOR with the objective to further mature the prospectivity of the Exploration Area. 6.9 The estimated expenditure amounts set forth in Articles 6.1, 6.2 and 6.3 above are expressed in constant U.S. Dollars for the month of the Effective Date, and shall be revised at the end of each Calendar Year, Year starting from the Effective Date, in order to reflect the actual value of the estimated expenditure amounts for purposes of Article Article 6.9.1 hereafter, in accordance with the method set forth in Article 6.9.2 below: 6.9.1 At the end of each Calendar Year, starting from the Effective Date, the Exploration Costs actually incurred by the CONTRACTOR during such Calendar Year, Year shall be deducted from the total amount of the CONTRACTOR's estimated expenditure amounts for purposes of Article Article 6.9.2 hereafter for the current period of the Exploration Phase. 6.9.2 The amount remaining after the deduction referred to in Article 6.9.1 above, above shall be revised each Calendar Year by multiplying it by the factor: In / In1 Where: